05-14-2023, 10:53 AM
U.S. Chip War Goes Haywire – Taiwanese Chipmaker TSMC’s Bad Business Decision Has Boomeranged
![[Image: US-Chip-War-Against-China-Taiwan-TSMC-Chip.jpg]](http://www.financetwitter.com/wp-content/uploads/2023/05/US-Chip-War-Against-China-Taiwan-TSMC-Chip.jpg)
Biden’s game to cripple the Chinese semiconductor industry was simple – prevents China from getting the world’s most advanced chips. At the same time, he signed an executive order last August to boost the U.S. competitiveness with a whopping US$52.7 billion subsidy in semiconductor manufacturing and research. The goal was to kill China without killing global chip supplies.
The law – “Chips and Science Act” – was specially designed to prevent companies from building production facilities in China and bans American companies from supplying equipment that China could use to produce advanced chips. The U.S. was actually very vulnerable – depending on Asia for 75% of its semiconductors. To hell with free trade and globalization.
Apart from reducing reliance on overseas suppliers, Biden also hopes his measures could boost high-tech manufacturing at home as well as create jobs. America was basically throwing everything, including the kitchen sink, to stop China – the US’ main competitor for economic and military influence globally – from becoming a superpower and challenge the U.S. hegemony and dominance.
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The law – “Chips and Science Act” – was specially designed to prevent companies from building production facilities in China and bans American companies from supplying equipment that China could use to produce advanced chips. The U.S. was actually very vulnerable – depending on Asia for 75% of its semiconductors. To hell with free trade and globalization.
Apart from reducing reliance on overseas suppliers, Biden also hopes his measures could boost high-tech manufacturing at home as well as create jobs. America was basically throwing everything, including the kitchen sink, to stop China – the US’ main competitor for economic and military influence globally – from becoming a superpower and challenge the U.S. hegemony and dominance.
- More -