Tim Cook Attends CIA Brief Warning of China Move to Taiwan by 2027
Apple CEO Tim Cook attended a classified CIA briefing in 2023 that warned China it could invade Taiwan in 2027, according to a new investigative report. Taiwan is home to the Taiwan Semiconductor Manufacturing Company, better known as TSMC, which produces almost all of Apple’s advanced chips. After the meeting, Cook reportedly told officials that he slept with “one eye open,” indicating the seriousness of the warning.
The conference takes place in July 2023 in a secure room in Silicon Valley. US officials have become increasingly concerned about Taiwan’s technology industry’s heavy reliance on semiconductor manufacturing, especially as tensions between China and Taiwan continue to grow. China claims Taiwan as its territory and has conducted military exercises across the island, including blockade exercises.
I New York Times reported that the meeting was organized after then-Commerce Secretary Gina Raimondo pushed for tougher measures from major tech companies. CIA Director William Burns and Director of National Intelligence Avril Haines presented the intelligence assessment 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 have warned that China’s military build-up suggests it wants the power to take over Taiwan by 2027. Sullivan described US dependence on Taiwan for semiconductors as one of the country’s biggest risks. He urged companies to support the production of domestic chips, funded by a $50 billion grant under the CHIPS and Science Act.
Industry Dependence and Slow Change
TSMC produces about 90 percent of the world’s most advanced chips, including all of Apple’s custom silicon for the iPhone, iPad, and Mac. A confidential 2022 industry report concluded that losing access to Taiwan’s chips would cause the worst economic crisis since the Great Depression, with US GDP falling by 11 percent.
Despite those warnings, companies were initially hesitant to place large orders for US-made chips. Domestic production costs more than 25 percent more than those in Taiwan due to higher labor and material costs. In addition, TSMC’s Arizona facilities currently run the next generation of the most advanced technology available in Taiwan.
Nevertheless, pressure from Washington increased. Last summer, Cook visited the Oval Office and pledged to invest an additional $100 billion in the United States to support TSMC and other manufacturers. AMD and Qualcomm are also committed to expanding US manufacturing.
TSMC has now committed about $165 billion in investments in the US, including several new plants in Arizona. However, Taiwan continues to require the company to keep its most advanced processes on the island, emphasizing what officials call a “silicon shield” designed to protect Taiwan’s strategic value.
Cook’s comment about sleeping with “one eye open” underscores how seriously Apple takes the geopolitical risks tied to its supply chain.
