If strains between China and Taiwan continue to worsen, the Chinese Communist Party has a trump card: threatening to cut off the island’s exports, which include products from pivotal chipmaker and major Apple supplier TSMC.
Gina Chon for Reuters Breakingviews [Opinion]:
It’s possible that Americans will start to care about U.S. House Speaker Nancy Pelosi’s visit to Taiwan once they find out the production of their new Toyota is risk.
[TSMC] plays an outsized role in the global economy, supplying Apple, Qualcomm, and other industrial giants with key components. It should be enough to make even Americans – who otherwise remain largely uninterested – nervous…
China, too, would face consequences if it were to make life difficult for TSMC. Mainland chipmakers, handset brands, electric vehicles and more rely on the $447 billion company’s cutting-edge technology just as much as their U.S. rivals. That makes it less likely read more that the People’s Republic will follow through.
Still, the strength of TSMC puts U.S. companies, who have many friends in Washington, on the back foot. The company’s chip factories, which are mostly in Taiwan, supply more than half of the contract chip-making market, including 80% of microcontrollers used in cars and 90% of the most advanced semiconductors, according to Bain & Company.
MacDailyNews Take: Unsurprisingly, opening Pandora’s box has revealed a can of worms. It’s like a Russian doll for dummies.
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Title says “Trump Card. Can’ wait to see libturd heads explode… LOLOLOLOLOL
America’ trump card is Trump.
China’s trump card is Biden.
17 out of 35 downvotes. Libturds are a predictable as they are gullible and stupid!!!!
Aaah. Looks like a bunch of snowflakes widdle feelings got hurt whaaaaaa
TSMC will open fabs in Europe, North America, elsewhere.
Easier said than done, in the short to medium term.
Absolutely. TSMC saw the handwriting on the wall and entered into negotiations some time ago. Things do take time, however. Their IP is best of class.
Yes, and they’ll ALL be open by noon on Tuesday.
That only happens that fast if Rolly Polly gets in the White House and can stay out of Walter Reed.
But wait – he’s still promised to work on his infrastructure in the first two weeks . . .
How could China NOT invade Taiwan during Joe Biden’s term? They will never have an opportunity like this again…C’mon man!
TSMC is building a major semiconductor fab in Japan. Far past time to do so in the US as well..
TSMC – Trump’s Special ‘Murican Chipmaker. They are the best chipmakers! The best. Better than my words.
You on drugs, drunk or just stupid?
How ladylike, “Becky”.
I can’t guess how China’s ruling class would judge this. Invading Taiwan would be catastrophic for the world economy, including the Chinese economy. Not only would it hurt them in the short run, putting untold millions out of work, everyone would make every effort to build up replacement plants out of China’s reach. In the long run China would lose vast amounts of world trade.
Mainland China garners a huge benefit from Taiwan. Not only does trade with Taiwan and the presence of Taiwanese factories employ huge numbers of people and gain them vast amounts of trade, they also are acquiring western technology to help build up their own industries.
What would be the point of throwing all that away? Just so they could fly their flag over Taiwan? Still, you never know. As Mr. Gump said “Stupid is as stupid does.”
Tim Cook has sold his soul to the communist Chinese to make their damn iPhones and their iMacs and everything else Apple has. We will live to regret this! Dementia Joe Biden and Family and all Democrats and RINO’s are in bed with China! 🙁