So is everyone going to condemn Xi as a mad man........ 
In reply to Post #1
Not looking good.
China super aggressive but you have to wonder what the point was sending Pelosi there.
Not looking good.
China super aggressive but you have to wonder what the point was sending Pelosi there.
In reply to Post #2
China has always been after Taiwan over 60% of the worlds semiconductor (in layman's terms the chips, integrated circuits, black things with shiny legs) the wafers of which are produced at foundries (like TSMC and UMC, then these get packaged and tested in Taiwan and other Asian countries are based there if they took control of them it could trigger a serious conflict.
The world had long been reliant on Asia for foundry and cheap manufacturing, due to covid semiconductors are on year or worse leadtimes and this will continue to 2023
The US accounts for just under 50% of the worldwide semiconductor market so relationships with Taiwan are very critical.
The US (TSMC are building their first fab outside of Asia in the US in Arizona and intel are building a fab there also) and Europe are looking to build fabs to ease this reliance on Asia as concerns continue with China.
China has always been after Taiwan over 60% of the worlds semiconductor (in layman's terms the chips, integrated circuits, black things with shiny legs) the wafers of which are produced at foundries (like TSMC and UMC, then these get packaged and tested in Taiwan and other Asian countries are based there if they took control of them it could trigger a serious conflict.
The world had long been reliant on Asia for foundry and cheap manufacturing, due to covid semiconductors are on year or worse leadtimes and this will continue to 2023
The US accounts for just under 50% of the worldwide semiconductor market so relationships with Taiwan are very critical.
The US (TSMC are building their first fab outside of Asia in the US in Arizona and intel are building a fab there also) and Europe are looking to build fabs to ease this reliance on Asia as concerns continue with China.
In reply to Post #2
Agreed to a certain extent, although I think deep down the Chinese probably wanted her there to flex their muscles so to speak. Let's be honest, this and the Ukraine/Russian issue, it's a very sad world for everyone to bring up their loved ones in
Agreed to a certain extent, although I think deep down the Chinese probably wanted her there to flex their muscles so to speak. Let's be honest, this and the Ukraine/Russian issue, it's a very sad world for everyone to bring up their loved ones in
In reply to Post #3
Good info; you'd think that the US would have acted with a bit more diplomacy, they must have known that it would badly trigger China. Obviously the reliance on Asian manufacturing needs to change and so we need to start somewhere, but as Andydave mentions given everything else that's going on in the world right now, timing seems a bit off. A travesty that the West even allowed it to get to this point; and by that I mean allowing our industry and manufacturing to diminish to such an extent that we're so reliant on then East. I guess mass consumerism in the West, and the subsequent need for rock bottom prices is a significant driver.
Good info; you'd think that the US would have acted with a bit more diplomacy, they must have known that it would badly trigger China. Obviously the reliance on Asian manufacturing needs to change and so we need to start somewhere, but as Andydave mentions given everything else that's going on in the world right now, timing seems a bit off. A travesty that the West even allowed it to get to this point; and by that I mean allowing our industry and manufacturing to diminish to such an extent that we're so reliant on then East. I guess mass consumerism in the West, and the subsequent need for rock bottom prices is a significant driver.
In reply to Post #5
The timing is perfect.......couldn't make it up could you.......
The timing is perfect.......couldn't make it up could you.......
In reply to Post #5
Its worth remembering that this is a two way street. Although we outsourced most of our manufacturing to the east, they have in turn built their economy based on trade with the west. There is no possible good outcome for china should they choose to try and militarily take Taiwan. Firstly, its an enormous and well defended island, and china do not currently have the naval capacity required to come remotely close to effectively landing an assaulting the island, their option would only be nuclear and that in reality isn't even an option. Not only that, it is my understanding that one of their main aims would be to secure Taiwans semiconductor capacity as a huge asset as the west currently has no way of making the high end ones required and this would be a huge bargaining chip. However the chances of these facilities surviving a full scale war on Taiwan is slim to none, let alone if the Taiwanese decide to destroy them during an invasion. Secondly, the response that the west have shown with Russia, particularly cutting of trade in oil and gas shows that the west will not be bullied with physical bargaining chips. It also would be self destroying for the Chinese economy, based solely on western trade to start a war with Taiwan, knowing that the inevitable sanctions would come.
China has some serious problems coming in its near future too, namely its staggering population decline and therefore reversing of the population demographic. This is exponentially worse for a country that requires young people for manufacturing and wouldn't be such an issue for a tech/finance deprived economy but for one based on industrial capacity its honestly catastrophic. Along with that, chinas banks, housing and healthcare is on the verge of complete collapse.
Final note here, its worth mentioning that the US have still not recognised Taiwan as a sovereign state, so are not obliged to militarily assist them in any way. Pelosi visits Taiwan, china flexes its muscle, nothing else happens because of the consequences of the current geopolitical dynamic. Its currently a zero sum game for all sides, but that is open to change based on other geopolitical factors outlined above...
Its worth remembering that this is a two way street. Although we outsourced most of our manufacturing to the east, they have in turn built their economy based on trade with the west. There is no possible good outcome for china should they choose to try and militarily take Taiwan. Firstly, its an enormous and well defended island, and china do not currently have the naval capacity required to come remotely close to effectively landing an assaulting the island, their option would only be nuclear and that in reality isn't even an option. Not only that, it is my understanding that one of their main aims would be to secure Taiwans semiconductor capacity as a huge asset as the west currently has no way of making the high end ones required and this would be a huge bargaining chip. However the chances of these facilities surviving a full scale war on Taiwan is slim to none, let alone if the Taiwanese decide to destroy them during an invasion. Secondly, the response that the west have shown with Russia, particularly cutting of trade in oil and gas shows that the west will not be bullied with physical bargaining chips. It also would be self destroying for the Chinese economy, based solely on western trade to start a war with Taiwan, knowing that the inevitable sanctions would come.
China has some serious problems coming in its near future too, namely its staggering population decline and therefore reversing of the population demographic. This is exponentially worse for a country that requires young people for manufacturing and wouldn't be such an issue for a tech/finance deprived economy but for one based on industrial capacity its honestly catastrophic. Along with that, chinas banks, housing and healthcare is on the verge of complete collapse.
Final note here, its worth mentioning that the US have still not recognised Taiwan as a sovereign state, so are not obliged to militarily assist them in any way. Pelosi visits Taiwan, china flexes its muscle, nothing else happens because of the consequences of the current geopolitical dynamic. Its currently a zero sum game for all sides, but that is open to change based on other geopolitical factors outlined above...
In reply to Post #7
The last paragraph.
The US will never recognize Taiwan as a sovereign state, why should they, when the status quo suits the situation.
I think Pelosi went because of the Solomon islands deal China struck. China wants to break out into the Pacific, that deal advances those aims and caught the West cold.
Her visit reinforces China's poor position, poking a stick into Chinese internal issues and a blow to the regime's domestic line of an expansive assertive China. Fair enough in my book.
The last paragraph.
The US will never recognize Taiwan as a sovereign state, why should they, when the status quo suits the situation.
I think Pelosi went because of the Solomon islands deal China struck. China wants to break out into the Pacific, that deal advances those aims and caught the West cold.
Her visit reinforces China's poor position, poking a stick into Chinese internal issues and a blow to the regime's domestic line of an expansive assertive China. Fair enough in my book.
In reply to Post #8
Agree with everything you say there.
It all seems like fair game to me. The people who say 'don't poke the bear' regarding Russia are the same ones who will say this visit is causing unnecessary tension in the region, whilst failing to acknowledge both countries detrimental geopolitical expansion.
Agree with everything you say there.
It all seems like fair game to me. The people who say 'don't poke the bear' regarding Russia are the same ones who will say this visit is causing unnecessary tension in the region, whilst failing to acknowledge both countries detrimental geopolitical expansion.
In reply to Post #3
Intel already have several fabs in new Mexico serving the USA and fabs in southern Ireland serine euro.
Intel already have several fabs in new Mexico serving the USA and fabs in southern Ireland serine euro.
In reply to Post #10
Over 75% of their fabs are outside of Asia, they are @ 12% of the semiconductor market, they are the biggest though Samsung did overtake them early this year.
Over 75% of their fabs are outside of Asia, they are @ 12% of the semiconductor market, they are the biggest though Samsung did overtake them early this year.