🧠 Technology & AI risk-off · 1–3 years
A what‑if from the future

What if a Taiwan drought forces water rationing at semiconductor fabs?

A severe Taiwan drought (echoing 2021) forces water rationing at fabs, disrupting semiconductor output in the climate-to-chip-supply channel NGFS-style physical scenarios and the IMF flag.

12%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 0–26% · 28 analogues · measured class supply_chain 46% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 46% in 3 yr46%
Analyst prior · editorial share 22% of the class10%
Pooled · weight 82%13%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)13%
Published12%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A severe Taiwan drought (echoing 2021) forces water rationing at fabs, disrupting semiconductor output in the climate-to-chip-supply channel NGFS-style physical scenarios and the IMF flag. The trigger decomposes into signed root‑shocks — Climate/crop supply ▲ · Industrial demand ▼ · Risk appetite ▼ · Semiconductor supply risk ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -1.5%
hist -3.34–+0.3% · other way -0.33% (n=12)
2Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.2%
hist -2.53–+0.31% · other way +7.28% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.9%
hist -0.75–-0.24% · other way +1.05% (n=12)
4ASML ASMLon Hyperliquid 📈 chartEquity▼ -0.9%
hist -2.33–+0.58% · other way -3.44% (n=12)
5Wheat WHEATon Hyperliquid 📈 chartCommodity▲ +0.7%
hist -1.47–+3.8% · other way -0.74% (n=12)
6Corn CORNon Hyperliquid 📈 chartCommodity▲ +0.6%
hist -0.06–+1.05% · other way +0.19% (n=12)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.45–-0.16% · other way -1.73% (n=12)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.46–-0.15% · other way +1.15% (n=12)
9Micron MUon Hyperliquid 📈 chartEquity▼ -0.6%
hist -2.38–+0.72% · other way -6.54% (n=12)
10Marvell MRVLon Hyperliquid 📈 chartEquity▼ -0.6%
hist -1.39–+2.67% · other way +0.08% (n=12)
11Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -8.85–+2.92% · other way -8.24% (n=10)
12Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.3%
model prior · unmeasured
13Freeport (copper) FCX 📈 chartEquity▼ -0.3%
hist -4.26–+0.68% · other way -1.05% (n=12)
14Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -0.4%
hist -2.56–+0.81% · other way -3.18% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Freeport (copper) -0.3% · Tech sector -0.2%

Historical precedent — what analogous events actually did

Across 28 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Chernobyl disaster 1986-04 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Didi removed from China app stores after NYSE IPO 2021-07 Gold closes above $2,000/oz for the first time 2020-08 IPBES warns ~1 million species face extinction 2019-05 Nvidia crypto-glut guidance crash 2018-11 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Gold futures velocity-logic flash crash 2014-01 Gold all-time peak of $1,921/oz 2011-09 Egyptian revolution / Mubarak uprising 2011-01 2008 global rice / food price crisis peak 2008-04 2008 global rice crisis: Thai benchmark tops $1,000/ton 2008-04 Soviet August coup attempt against Gorbachev 1991-08 Silver Thursday 1980-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Three Mile Island partial meltdown 1979-03 1979 Iranian Revolution oil shock 1979-01
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-8.0% · 5d -4.3%83%12 0.46✓ matches cascade
ETH ETHSHORT-5.1% · 5d -3.8%71%14 0.35✓ matches cascade
FCX FCXSHORT-3.5% · 5d -2.1%71%21 0.34✓ matches cascade
Bitcoin BTCSHORT-2.7% · 5d -1.1%69%16 0.32✓ matches cascade
Volatility VIXLONG+8.0% · 5d +2.0%68%22 0.31✓ matches cascade
High-yield credit HYGLONG+0.4% · 5d +0.2%67%21 0.26·
TSM TSMSHORT-2.4% · 5d -2.1%67%21 0.24✓ matches cascade
CORN CORNLONG+0.7% · 5d -1.0% ↺ fades62%21 0.22✓ matches cascade
XCU XCUSHORT-2.0% · 5d -0.9%62%21 0.21✓ matches cascade
INTC INTCSHORT-3.6% · 5d -2.4%59%24 0.18✓ matches cascade
NVDA NVDASHORT-1.8% · 5d -3.7%62%21 0.16✓ matches cascade
AVGO AVGOSHORT-0.1% · 5d -2.8%58%19 0.14✓ matches cascade
Gold XAULONG+0.0% · 5d -0.6% ↺ fades57%21 0.13·
NG NGLONG+5.5% · 5d -1.9% ↺ fades57%21 0.12✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.