Apple CEO Tim Cook attended a classified CIA briefing in 2023 that warned China could move on Taiwan by 2027, according to a new investigative report. Taiwan is home to Taiwan Semiconductor Manufacturing Company, better known as TSMC, which produces nearly all of Apple’s advanced chips. After the session, Cook reportedly told officials that he slept “with one eye open,” reflecting the seriousness of the warning.
The briefing took place in July 2023 in a secure room in Silicon Valley. U.S. officials had grown concerned about the tech industry’s heavy reliance on Taiwan for semiconductor manufacturing, especially as tensions between China and Taiwan continued to rise. China claims Taiwan as its territory and has carried out military exercises around the island, including blockade drills.
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The New York Times reports that the meeting was arranged after then-Commerce Secretary Gina Raimondo pushed for stronger action from major tech companies. CIA Director William Burns and Director of National Intelligence Avril Haines presented intelligence assessments to Cook, Nvidia CEO Jensen Huang, AMD CEO Lisa Su, and Qualcomm CEO Cristiano Amon.
“We were saying: ‘This is crazy. We have to do something about it,’” said Jake Sullivan, President Biden’s national security adviser.
Officials warned that China’s military buildup suggested it wanted the capability to take Taiwan by 2027. Sullivan described U.S. dependence on Taiwan for semiconductors as one of the country’s greatest vulnerabilities. He urged companies to support domestic chip production, backed by $50 billion in subsidies under the CHIPS and Science Act.
Industry Dependence and Slow Shifts
TSMC produces about 90 percent of the world’s most advanced chips, including all of Apple’s custom silicon for iPhone, iPad, and Mac. A confidential 2022 industry report concluded that losing access to Taiwan’s chips would trigger the worst economic crisis since the Great Depression, with U.S. GDP falling 11 percent.
Despite those warnings, companies initially hesitated to place large orders for U.S.-made chips. Domestic production costs more than 25 percent above those in Taiwan due to higher labor and material costs. In addition, TSMC’s Arizona facilities currently run a generation behind the most advanced technology available in Taiwan.
Still, pressure from Washington increased. Last summer, Cook visited the Oval Office and committed to investing another $100 billion in the United States to support TSMC and other manufacturers. AMD and Qualcomm also pledged to expand U.S. production.
TSMC has now committed roughly $165 billion in U.S. investments, including multiple new plants in Arizona. However, Taiwan continues to require the company to keep its most advanced processes on the island, reinforcing what officials call a “silicon shield” designed to protect Taiwan’s strategic value.
Cook’s remark about sleeping “with one eye open” underscores how seriously Apple views the geopolitical risk tied to its supply chain.
Did he tell the president to honor American’s treaty to protect Taiwan from Chinese aggression? I really hope so!