Semiconductor chips had been the primary 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 situated in Taiwan. Ought to they be involved?
I’m advised the overall consensus was that even within the occasion of China following by with its One China coverage, the corporate believed that China wouldn’t need to lose such a profitable enterprise cope with the USA.
I hate to be the bearer of unhealthy information, however the USA just isn’t the one nation lining as much as buy chips. Most tech firms NEED these semiconductor chips and the world by no means really recovered from the scarcity a number of years in the past. This explicit firm produces top-tier chips and there’s a particularly excessive demand for them. Folks pays high greenback.
Have a look at what occurred in Russia. We’re nonetheless buying Russian oil however by third occasion nations like India who flip round and promote it at a premium. Vitality is costlier 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 chopping off the West’s provide of semiconductors could be a financial blow.
Socrates precisely predicted Taiwan’s election outcomes earlier within the 12 months and we noticed a route change again in January. Taiwan’s new President Tsai Ing-wen is essentially the most outspoken Taiwanese chief towards the One China coverage. He has been deemed a risk by the Chinese language authorities. The neocons have stated they’ll defend Taiwan to the top, whereas China has reiterated that any try and intervene in its affairs will likely 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 significant issue.
“Within the face of authoritarian expansionism and the challenges of the post-pandemic period, Taiwan seeks to bolster cooperation with the USA within the semiconductor and different high-tech industries. This may assist construct safer and extra resilient provide chains. We stay up for collectively producing democracy chips to safeguard the pursuits of our democratic companions and create larger prosperity,” Taiwan’s president acknowledged.
Taiwan’s rising relationship with America is fanning the flames of struggle. The nation’s total army technique depends on superpowers like America shielding it from China. Our adversaries see that we’re carrying ourselves skinny and hanging will likely 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 struggle below his first administration the place each nations needlessly slapped on tariff after tariff. Let’s additionally keep in mind that it’s going to not be simple for Taiwan to export something if there’s struggle within the Indo-Pacific. Is made in Taiwan a protected wager proper now from a Western perspective? Sadly, the reply isn’t any.
