Semiconductor chips had been the principle matter at an adjoining convention within the Hilton Bonnet Creek this week. An worker of mine spoke with one attendee who stated shareholders had been involved that their manufacturing headquarters had been positioned in Taiwan. Ought to they be involved?
I’m advised the final consensus was that even within the occasion of China following via with its One China coverage, the corporate believed that China wouldn’t need to lose such a profitable enterprise take care of the US.
I hate to be the bearer of unhealthy information, however the US shouldn’t be the one nation lining as much as buy chips. Most tech corporations NEED these semiconductor chips and the world by no means actually recovered from the scarcity just a few years in the past. This explicit firm produces top-tier chips and there may be an especially excessive demand for them. Individuals pays high greenback.
Have a look at what occurred in Russia. We’re nonetheless buying Russian oil however via third social gathering nations like India who flip round and promote it at a premium. Vitality is dearer for everybody within the West now. China might implement retaliatory tariffs for the US and anybody else disobeying the One China coverage and China is strategic sufficient to know that reducing off the West’s provide of semiconductors can be a financial blow.
Socrates precisely predicted Taiwan’s election outcomes earlier within the yr and we noticed a path change again in January. Taiwan’s new President Tsai Ing-wen is probably the most outspoken Taiwanese chief towards the One China coverage. He has been deemed a menace by the Chinese language authorities. The neocons have stated they are going to defend Taiwan to the top, whereas China has reiterated that any try and intervene in its affairs shall be met with extreme penalties.
Tsai Ing-wen is keen to strengthen relationships with the US by producing extra semiconductor chips. The US put aside funds particularly to construct up home manufacturing, however shortages stay a major problem.
“Within the face of authoritarian expansionism and the challenges of the post-pandemic period, Taiwan seeks to bolster cooperation with the US within the semiconductor and different high-tech industries. This can assist construct safer and extra resilient provide chains. We look ahead to collectively producing democracy chips to safeguard the pursuits of our democratic companions and create higher prosperity,” Taiwan’s president said.
Taiwan’s rising relationship with America is fanning the flames of conflict. The nation’s total army technique depends on superpowers like America shielding it from China. Our adversaries see that we’re sporting ourselves skinny and placing shall be far simpler than earlier than.
It stays to be seen how relations will pan out with Trump on the helm. All of us keep in mind the notorious US-China commerce conflict underneath his first administration the place each nations needlessly slapped on tariff after tariff. Let’s additionally keep in mind that it’ll not be simple for Taiwan to export something if there may be conflict within the Indo-Pacific. Is made in Taiwan a secure wager proper now from a Western perspective? Sadly, the reply is not any.