How the Hormuz Blockade Is Disrupting Chip Supply Chains

Asian chipmakers, including giants Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., are facing disruptions to their supplies of oil and other essential commodities as a result of the closure of the Strait of Hormuz. The companies are preparing contingencies to mitigate the impact should conflict in the Middle East drag on.

A range of commodities used to make chips, including a fifth of the world’s liquefied natural gas, pass through the strait. Each passing week that the vital passage remains closed heightens the risk of a halt in the global semiconductor supply chain. Microchips are essential for products ranging from smartphones and cars to missiles and artificial intelligence services.