back to article US warns losing access to Taiwanese chips could break the economy

Taiwan controls most of the world's chip manufacturing capacity, and that worries US Commerce Secretary Gina Raimondo. Raimondo believes the US would go into a "deep and immediate recession" and face great security risks if it lost access to the island nation's chips The Commerce Secretary made the warning in a Wednesday …

  1. PhilipN Silver badge

    Chips with everything

    And there's me thinking the US main concern about Taiwan was democracy .....

    1. teknopaul Silver badge

      Re: Chips with everything

      It's not polite to mention democracy on a UK website while the Brexit party electing itself a new leader.

      1. jgarbo
        Devil

        Re: Chips with everything

        The City (Wall St "advising") will decide next PM: dumb, aggressive, vain, pliable. Who could she be?

    2. jgarbo
      Facepalm

      Re: Chips with everything

      Gee, born only yesterday and you can type? US instant recession? Try Chinese hypersonic missiles (via Russia) on TSMC factories, no collateral damage (email CEO first). USA goes dark. China ramps up 7nm chips production.

      Oh, maybe Nancy Pelosi's August visit will scare China, right? What's the American word for "moronic imbecile"?

  2. Auntie Dix Bronze badge
    FAIL

    Profiteers in Government & Industry

    "[The U.S. needs] a manufacturing base that produces these chips, at least enough of these chips, here on our shores, because otherwise we'll just be too dependent on other countries," [Raimondo] said.

    Duh.

    Does she even fog a mirror?

    Stop giving taxpayer handouts like "CHIPS" to Intel et al.

    Instead, bring back through STRICT REGULATION the industry that our pols gave away decades ago (at the behest of U.S. profiteers' greed for "globalization").

    SOLUTION: Ban chip imports. Do not tolerate security risks.

    1. Anonymous Coward
      Anonymous Coward

      Re: Profiteers in Government & Industry

      Ban chip imports so that China is Taiwan's only customer? Brilliant!

  3. Lordrobot

    Suppose China just Blows up TSMC and never tries to take Taiwan

    Gina Raimondo has no background in trade, technology or economics. She is the former Gov of Rhode Island which holds the perminent bottom ranking for business in the USA.

    So when did this sudden realization come into view that Taiwan holds the world hostage for narrow gated chips? During Trump's paranoid occupation or before then? What caused the sudden moment of realization that Taiwan held the world of narrow gated chips hostage?

    But let's also remember that only 5% of the global market is narrow gated chips. This is why China is focused on 95% of the market and why they have now nearly achieved 80% self-sufficiency in 95% of the global chip market.

    The fastest way for China to take Taiwan is simply to attack TSMC and throw sand and dirt in all the foreign chip lines or just blow up the ASML EUV lithography devices and walk away. Without TSMC Taiwan would have no more global friends other than China. If China only attacks TSMC and leaves Taiwan intact, it is not an invasion it is a mere act of destroying a business and they could do it with no loss of life.

    Then look at all you are getting from just 52 billion dollars... Intel promises three fab plants, TSMC promises two plants and even Samsung promises a plant. Figure the plants are $20 billion each in the US which has OSHA, EPA, IRS, SEC, FTC, FDA, and Dept of Interior overseeing every step of the way assuring higher costs and lower efficiency. Yeah, this will work. I haven't even gotten into the US workforce, most employee theft, most disability, most violence in the workplace, much aimed at Asians, good luck with Texas and Arizona and Ohio, UNIONS, most absenteeism, and the king daddy of all the Most Litigious nation on earth... Those semiconductor toxic washes will be the next $2 Billion suit in the California Courts.

    TSMC should simply move out of Taiwan before it gets blown up. A US General said if Taiwan is invaded by China, then Taiwan should blow up TSMC. Clearly, TSMC is at risk. And if Joe Biden's claims the US would go to war with China over Taiwan are true, then you know the first US Target will be TSMC. And when the TSMC plant is blowing up, then the US will leave Taiwan. After all, why lose another war to an Asian country. Blowhard is much more effective from a safe distance.

    Perhaps the question that should be asked is why the US Semiconductor industry continues to decline 3% a year. Is this because there is no fab or because foreign nations don't want the risk of buying US-made semiconductors for fear of sanctions? Suppose you are a Chinese Cell phone maker and using Qualcomm chips. Then a blowhard president puts sanctions on those chips. Is anyone going to use US chips in Asia where all the smartphones are made or in Korea? Even Samsung started making their own chips to get away from Qualcomm dependence.

    So who is going to buy US-made chips and is any fabless company going to go to INTEL for FAB and share their designs with INTEL? You can't be serious. What about Samsung's US FAB plant proposal. Same deal, nobody is going to share their designs with SAMSUNG.

    So who is going to buy all this mega FAB output the US promises off 52 Billion in taxpayer money? Nobody. That's who.

    OK then when are the US smartphone manufacturing lines going to appear in this panacea? How bout big screen TVs and modems, and computers etc. and What happens to the European in this mix? They subordinate their will to the USA and get nothing in return. TSMC and SAMSUNG and INTEL are not talking about Fab plants in Europe. So is Europe left out in the cold? Well yeah... And what about ASML... how long will they be a monopoly before the US considers landing a military force there... OH, they already have one in NATO... NATOIZATION... as intelligent as VIETNAMIZATION.

    So how should the Chinese take out TSMC? They should make it look like the CIA did it. Leave some American trinkets on the ground. Set explosives that looked like Air conditioner compressors, cooling towers etc.

    Face it American Xenophobes would love it. They won't have to buy products from Taiwan or feel they are being held hostage anymore. Once TSMC is gone, nobody will care if Taiwan even exists. TSMC is EVERYONE's problem... Eliminate it and the Global problem is solved.

    To paraphrase Henry Kissinger... China is not going away... so stop using your provincial local politics to confront China. You are not doing the math. The FAB stooges are focused on just 5% of the semiconductor global market. China is altering that equation with 5g and 6g... They are looking to build supercomputer backbones into the network capacity so the smartphone can be a lot less smart and a lot cheaper if the network does the heavy lifting.

    Once TSMC is gone, Taiwan will no longer be a Target of the globe.

    1. CrackedNoggin

      Re: Suppose China just Blows up TSMC and never tries to take Taiwan

      The FAB stooges are focused on just 5% of the semiconductor global market.

      Not every 5% is the same, obviously.

      China is altering that equation with 5g and 6g... They are looking to build supercomputer backbones into the network capacity so the smartphone can be a lot less smart and a lot cheaper if the network does the heavy lifting.

      What a waste of a supercomputer, unless your goal is to watch the movements, listen to the words, and pick apart the minds of every one of 1.1 billion people in some kind of mother of all AIs.

      I agree TSMC is at risk - and that general is a blowhard who I hope got a spanking. But I don't think the equipment there NOW at TSCM is the be all and end all. It goes out of date pretty quick. In the long run it is the people involved who have the potential, if allowed and offered resources and motivation, that make the magic.

  4. Anonymous Coward
    Anonymous Coward

    I recommend offering to move TSMC, most of it's employees, suppliers, and a lot of equipment to the state of "New Taiwan", to be created somewhere inside the United States.

    The 53 billion would honestly be spent more effectively that way.

    TR's own link:

    https://www.nextplatform.com/2022/07/20/tsmc-life-is-a-beach-and-then-you-make-dies/?td=rt-3a

  5. Sin2x

    It's not a question of if, it's a question of when. And it feels this when is coming pretty soon, maybe even by the end of this year while USA has its hands full in Ukraine.

    1. Anonymous Coward
      Anonymous Coward

      Hands full? You've got to be kidding. The entire US military philosophy is based on being able to fight both Russia and China at the same time.

      And the US isn't even fighting Russia, they're just shipping old gear to Ukraine.

  6. jgarbo

    Who do you think operates the HIMARS? US army, who are getting killed with every missile strike. Four now, plus maybe two sold to Russians by Nazis. Dumb Yanks.

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