The chipmaking factory of the world is battling COVID-19 and the climate crisis

Taiwan — which accounts for more than half of the world's output of chips — has been grappling for months with its worst drought in more than 50 years, an event experts say could become more frequent due to the effects of climate change.

"There is clearly pressure in the semiconductor industry," wrote Mark Williams, chief Asia economist at Capital Economics, on Thursday in a note that referenced the water shortages and coronavirus cases, along with rolling power outages.