The risks of climate-related events on supply chains in critical industries have been examined by Moody's Analytics. One example of supply chain disruption is the recent water scarcity events in Taiwan, which have highlighted the importance of the semiconductor supply chain. Taiwan is a major hub for semiconductor manufacturing, producing 92% of the world's most advanced chips. Concerns are growing about the region's vulnerability to climate change and its impact on global supply chains. Climate risks could lead to substantial cost increases for semiconductor facilities in Taiwan and other Asia Pacific countries like South Korea, Japan, and China.
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