IMPORTANT CONTEXT…
Taiwan makes 90% of the semiconductor chips produced globally - mostly at TSMC.
People likely don’t understand and often overlook how important this company actually is. TSMC is responsible for the fabrication of over half the global semiconductor foundry market, by revenue alone. It is by far the most powerful and valuable company in all of Asia and is the 10th most valuable in the world.
Intel, Nvidia, AMD, Apple and even Toyota, like almost every major company in the world, is reliant on TSMC’s fabrication of semi conductors. Even major weapons manufacturers like Lockheed Martin and its F-35 fighter jet along with a wide range of military-grade devices used by the U.S. Department of Defense (DOD), is entirely reliant on TSMC.
It is thought of as the ‘crown jewel’ of Taiwan. Its unique output capabilities, along with its advanced fabrication process that has proven to be impossible to replicate anywhere else in the world, makes the company invaluable and strategically important on a geo-political scale. Even the Chinese telecommunications giant, Huawei, is reliant on TSMC.
TSMC is able to stay ahead of other competitors because it doesn’t have any in-house designs and solely operates on an outsourcing model. This means that companies from all around the globe use TSMC to fabricate their internal chips because they have no other choice. In other words, TSMC has made itself indispensable. Their sole business to focus on the fabrication of these chips & semi conductors. This is why TSMC is by far the the largest, most advanced and competitive entity in this space.
Recently, the House of Representatives passed the Chips and Science Act, which sets aside billions of dollars in incentives to build chip factories on U.S. soil. Biden is expected to sign the Bill within days of its passing.
Supporters of the legislation explain that it is necessary for national security to secure the supply of efficient and modern chips for U.S. usage if China were to invade or otherwise make it more difficult to manufacture chips in Taiwan.
The bill will mostly incentivise American companies like Intel. TSMC is planning on building a $12 billion chip factory in Arizona and would likely also benefit from the subsidies.
It’s important to note that these US facilities aren’t going to be in production of the high-end chips anytime soon. It’ll take take years to develop sophisticated chips and advanced fabricating processes that currently match TSMC’s operations. By that time TSMC would’ve continued to grow and develop their state-of-the-art chip architecture and advanced fabrication methods.
Recently, Nancy Pelosi announced that she was going to visit Taiwan. And at the time of writing this article, she has now landed. This trip is significant for a number of reasons, mainly the shoring up of the US support for an independent Taiwan and breaking apart the ‘One China’ policy. To give some historical context to this dangerous situation, this political stunt breaks long standing agreements between the US and China and pushes the world closer to a hot war between these two major nuclear super powers.
The fears of the ramifications of Pelosi’s unnecessary and provocative trip is felt by many - even those who are in the highest echelons of power within TSMC. If China were to invade Taiwan to shore up its sovereign claim, the most-advanced chip factory in the world would be rendered "not operable," TSMC Chair Mark Liu said in a recent interview with CNN .
https://edition.cnn.com/videos/tv/2022/07/31/exp-gps-0731-mark-liu-taiwan-semiconductors.cnn
Lie indicated that the global supply chains, which TSMC relies heavily on, would immediately render to company inoperable because of the goe-political position it’d be put in.
According to Lou, "Nobody can control TSMC by force. If you take a military force or invasion,” it would mean that the factory would no longer be able to produce their sophisticated technology. "Because this is such a sophisticated manufacturing facility, it depends on real-time connection with the outside world, with Europe, with Japan, with U.S., from materials to chemicals to spare parts to engineering software and diagnosis.” He went on to say, "The war brings no winners, everybody's losers."
As Pelosi, and her neo-con acolytes tout their temporary success through Winnie the Pooh memes comparing the Chinese President Xi Jinping to the iconic Disney character, China ramps up its military exercises from three sides of Taiwan, in a display of military might and muscle.
When thinking about recent geo-political interventions, from what appears to be a hostile and hawkish US foreign policy agenda, it’s hard to see past the direct comparisons between the potential conflict in Taiwan and the NATO-backed proxy war that has been fought in the Ukraine - fuelled by US tax-payer money.
During the interview with CNN, Liu rejected the common comparison that is made between the Ukraine and Taiwan, however, he stated that Taiwan’s situation would be similar Ukraine, in that the "Ukraine war is not good for any of the sides, it's lose-lose-lose scenarios," and that we should take lesson from it.
As the State Department pats itself on the back for its assistance in coordinating Pelosi’s political stunt, the gears of war turn. China is making itself very clear, “A red line has been crossed.” There will be retaliation. We can only hope that China continues to be the adult and ignore the other children in the room.
Chinese Media: U.S. Seems to Have Plans to Destroy Taiwan With Nord Stream Part II . . . https://trendsinthenews.substack.com/p/chinese-media-us-seems-to-have-plans
This guys an idiot lol. Don’t bother wasting time reading this drivel. It’s garbage.