In the end, the US chip/tech ban to China is hurting the US.
Car makers like GM and Ford can't procure chips on the market. As a result they must drastically reduce their car output.
China's car factories are less impacted because seeing the chip ban coming,
Car makers like GM and Ford can't procure chips on the market. As a result they must drastically reduce their car output.
China's car factories are less impacted because seeing the chip ban coming,
2/ they prepared their chip stockpile.
China's mid/low end chipset manufacturers can't make chips because of difficulties to procure lithography machines and other upstream tech indispensables as a result of the US tech ban.
As every object and household appliance nowadays
China's mid/low end chipset manufacturers can't make chips because of difficulties to procure lithography machines and other upstream tech indispensables as a result of the US tech ban.
As every object and household appliance nowadays
3/ is endowed with AI, the needs for mid/low end chips has exploded worldwide. US having rendered impossible for China to produce such chips, companies have no other option but to buy from Samsung and Taiwan's TSMC. These two companies can't cater to the worldwide chip needs
4/all by themselves. We therefore witness a massive worldwide chip shortage. US is literally destroying the world's chip supply chain which has grown organically & been running smoothly for years.
To alleviate the chip shortage hurting the US, US has eased somewhat its ban.
To alleviate the chip shortage hurting the US, US has eased somewhat its ban.
5/ China's foremost chip maker SMIC was thus able to buy 1.2 bn US$ worth of lithography machine from the Dutch company ASML allowing itself to produce 10nm+ chips.
US is desperate to regain the chip dominance. Unfortunately, the most advanced technology is currently in the
US is desperate to regain the chip dominance. Unfortunately, the most advanced technology is currently in the
6/hands of Taiwan (No. 1) and South Korea (No. 2). Samsung and TSMC are urged and incentivised to set up chip factories in the US. However if the US still can't regain the chip supremacy, it's very likely that US would apply coercive measures to force the two chip leaders to
7/ transfer technology, allow themselves to be purchased by an US company etc, as US has always done to its competitors.
The anti-China coalition of Democracies is difficult to establish for the simple reason that US would strike friends and foes alike where US
The anti-China coalition of Democracies is difficult to establish for the simple reason that US would strike friends and foes alike where US
8/ interests are contradicted.
If Samsung and TSMC don't bend to the US demands, they will soon find themselves to "have stolen the chip technology from the US" or guilty of other forms of "industrial espionage".
If Samsung and TSMC don't bend to the US demands, they will soon find themselves to "have stolen the chip technology from the US" or guilty of other forms of "industrial espionage".
9/Immediately I get comments that I promote conspiracy theory. Well, history has shown us the precedent of such a scenario. US destroyed Japan's budding and thriving semiconductor industry. Readers are welcome to provide material on this, otherwise I will do a thread.
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