With rising tensions in East Asia, Chinese pressure has reminded the European Union why Taiwan is important to it, and especially the small computer chips that the island produces, writes "Politico".

China has blocked trade links with Taiwan in response to a visit by US House Speaker Nancy Pelosi, sending troops near the island and conducting a series of military exercises.

Such military exercises have forced numerous ships and aircraft to change their routes.

The problem for Europe

The problem for Europe is that it has built up its dependence on Taiwanese computer chips over the past few years, but a Chinese attack could immediately destroy a vital supply line with little or no warning.

So how can the EU protect itself from such a risk?

Above all, the bloc lacks the expertise that Taiwan attracts. TSMC was founded in the late 1980s by Maurice Chang, a former engineer at US-based Texas Instruments. Chang is a prime example of how Western tech companies have lost the expertise that comes with specialized process.

Taiwan's flexible employment culture also means chipmakers can more easily hire and fire workers to match growth and decline in demand, said Ludo Deferm, executive vice president at Leuven-based semiconductor research center Imek.

The second problem is the unique nature of the chips TSMC can supply. Not only is the company key to the electronics that are now ubiquitous in phones or laptops, but it already makes some of the most advanced chips, such as those five nanometers or smaller.

"In fact, there are now only two factories in the world that can produce chips under five nanometers. It's TSCM and Samsung," said Herman Hauser, founder of Acorn Computers, in an interview with Politico. "TSMC is completely dominant, we are completely dependent on them."

But the EU is, of course, aware of possible obstacles.

"It is a sector that is both capital and knowledge intensive and is subject to rapid technological evolution. Chip production takes place in a supply chain that is global, complex and, in some important segments, too concentrated," said an EU official.

Why does Taiwan need Europe?

Now, tensions between China and Taiwan raise the question of how Beijing and Brussels will cooperate going forward.

TSMC's key role has not gone unnoticed in mainland China. In a speech in June, a top Chinese economist openly called for Beijing to "seize" the company.

Some Western observers, however, are skeptical that this threat will materialize – saying it is simply not in China's interest to do so because TSMC relies on other companies to provide equipment, such as Dutch company ASML.

This was also said by the head of TSMC, Liu, in an interview with CNN, warning that his company would be out of business if China attacked Taiwan.

But if we consider the "unthinkable" scenario – a complete cut off of Taiwanese chip imports – it will no doubt motivate European lawmakers and businesses to accelerate their existing plans to resume production of some chips and double Europe's market share in global semiconductor value chain.