US Trade Deficit in Microchips Shifts From China to Taiwan
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5 Comments
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2 years ago
TSMC makes the most advanced chips in the world. Pretty much all cutting edge chips are manufactured by them. I think this is the prize China wants by acquiring Taiwan.
2 years ago
Last I understood, PRC state enterprises were dangling really tantalizing offers in front of Taiwanese semi-conductor talent. And getting bites.
Anyway, one might wonder what trade balance noise is about. Lift the cover on international trade numbers and reality scurries away like a cockroach. Farms and mines know borders. People? Less and ever less so. Money? Pffft.
2 years ago
“Last I understood, PRC state enterprises were dangling really tantalizing offers in front of Taiwanese semi-conductor talent. And getting bites.”
It’s a competitive business. If things can be done cheaper on the mainland (and Taiwan is just to small to scale nearly as efficiently with rapidly rising demand as China. Bottlenecks are much quicker to pop up there), they will be. Then, just enough to get around arbitrary sanctions, tariffs and other drivel, will end up being done on Taiwan.
Which, unfortunately, over time renders Taiwan weakened. Since more and more of the hard, value adding activity gets done in China, while the stuff done on Taiwan increasingly become shifted to makework, paper pushing, “services,” subterfuge and such. Rendering its population skilled up for, hence dependent on, the continued existence of such arbitrary rackets, rather than for doing real work.
2 years ago
Taiwan, as in the Republic of China.
2 years ago
It will be interesting to see if this is temporary…as in a stop-gap on the way to reshoring chip manufacturing. This new Samsung plant is going to be a few miles from my office. It won’t start actual production until 2024.
link to theverge.com