May 13, 2021

COLD WAR II: Taiwan’s TSMC joins American chip coalition in another blow to China’s self-sufficiency drive.

While ostensibly created for lobbying purposes in the US, the coalition showcases US influence over the globalised semiconductor supply chain, and is likely to complicate Chinese government efforts to reduce the country’s reliance on US technologies, analysts said.

China’s chip self-sufficiency ambitions “continue to face headwinds from surging efforts in America to reshore and ring-fence semiconductor value chains and technology” said Alex Capri, research fellow at the Hinrich Foundation and lecturer at the National University of Singapore.

TSMC’s increased investment and participation in building leading edge 5-nanometer (nm) and even 3-nm chip manufacturing plants in America may increase the pressure on Beijing because it appears the Taiwanese company will not do the same in mainland China, Capri said.

You’d have to be a fool, suicidal, or on the take to build an advanced fab in mainland Communist China.

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