Semiconductors have become known as the 'new oil'. Taiwan is the world´s top manufacturer of silicon chips, with companies at the forefront of semiconductor nanotechnologies. For that reason, a war in this region leading to a disruption of Taiwan´s microchip production would have far-reaching ripple effects on China and the global economy. Our Taiwanese analyst´s reading of the election results goes against mainstream media opinion. Taiwan´s new government faces a third term with a minority parliament amidst an economic slowdown and huge challenges to wean the economy from its dependence on Chinese demand. Interestingly, the Chinese Communist Party benefits most from the split balance of power in the next legislature.