Semiconductor chips had been the primary subject at an adjoining convention within the Hilton Bonnet Creek this week. An worker of mine spoke with one attendee who mentioned shareholders had been involved that their manufacturing headquarters had been positioned in Taiwan. Ought to they be involved?
I’m informed the overall consensus was that even within the occasion of China following via with its One China coverage, the corporate believed that China wouldn’t wish to lose such a profitable enterprise cope with the US.
I hate to be the bearer of unhealthy information, however the US is just not 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 couple of years in the past. This specific firm produces top-tier chips and there may be a particularly excessive demand for them. Folks can pay prime greenback.
Have a look at what occurred in Russia. We’re nonetheless buying Russian oil however via third celebration nations like India who flip round and promote it at a premium. Power is dearer for everybody within the West now. China may implement retaliatory tariffs for the US and anybody else disobeying the One China coverage and China is strategic sufficient to know that slicing 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 course change again in January. Taiwan’s new President Tsai Ing-wen is essentially the most outspoken Taiwanese chief in opposition to the One China coverage. He has been deemed a risk by the Chinese language authorities. The neocons have mentioned they are going to defend Taiwan to the tip, whereas China has reiterated that any try and intrude in its affairs will probably be met with extreme penalties.
Tsai Ing-wen is raring 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 US within the semiconductor and different high-tech industries. It will 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 better 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 putting will probably be far simpler than earlier than.
It stays to be seen how relations will pan out with Trump on the helm. All of us bear in mind the notorious US-China commerce struggle beneath his first administration the place each nations needlessly slapped on tariff after tariff. Let’s additionally bear in mind that it’s going to not be simple for Taiwan to export something if there may be struggle within the Indo-Pacific. Is made in Taiwan a protected wager proper now from a Western perspective? Sadly, the reply isn’t any.