back to article Foxconn will have to forget about investing in Tsinghua Unigroup

Taiwanese electronics manufacturer and Apple supplier Foxconn will likely be forced to back out of a $800 million investment in Chinese chipmaker and foundry operator Tsinghua Unigroup, thanks to rapidly deteriorating international relations. The government in Taiwan was already considering fining Foxconn around $835,000 for …

  1. Lordrobot

    Propagoonda... let's play GO

    At this point, the US has made Taiwan Semiconductor a flash point. In an effort to control TSMC the US has left no doubt it would destroy TSMC if it were not to abide the will of the US Gov.

    "A 2021 US Army journal paper even suggested if Taiwan was threatened by China, it should credibly threaten to destroy TSMC to force the Middle Kingdom to reconsider." A US General went further and said Taiwan should destroy TSMC, if attacked by China.

    To appease its US Master, TSMC is building the LARGEST FAB PLANT EVER in Phoenix AZ. Brookings Institution, a US think tank wrote, that the cost of producing chips in the US was 50% higher than that in Taiwan. TSMC is learning that the cost of building a factory is also 30% higher than expected. Further, they can't find employees. Intel who is building three or four bigger plants has gotten to the workplace before TSMC. So TSMC isn't sure they can get a workforce to their new plants. also said TSMC’s way of management in Taiwan might not work in the US.

    The US grand plan is to have roughly 30 fab plants in the USA. Each plant will be fabricating chips at over 50% more than the cost of Taiwan and Korea. Where is the market for these expensive fab chips? How will these 30 gov subsidized fab plants stay in business?

    And a bigger question is what happens to Taiwan when the USA becomes the "epicentere" of the global FAB business? Well, the US won't need Taiwan or Korea at that point. In fact, if the US fabs offer massive salaries and make even more expensive FAB chips, they can lure the expertise from Tawain and Korea leaving Taiwan and Korea out in the rain.

    At that point the US will have no more use of Taiwan. THE US plan will have effectively destroyed ASIA and the US will become the greatest high-tech manufacturing centre the "World has ever known."

    AS Sen. Charles Schumer (D-N.Y.) declared in November 2008: “A business model based on gas — a gas-guzzling past — is unacceptable. We need a business model based on cars of the future, and we already know what that future is: the plug-in hybrid electric car.” Now in 2022 Every Murican has a Hybrid car plugged into their garage wall outlet.... and Chuck Schumer leads the FABRICATION REVOLUTION to even greater heights in Murica.

    What should China do at this point... nothing but continue work on their own fab and chip development and lithography.

    The stumbling block for all the Chip Fab is ASML. This company only produces a handful of EUV machines a year and just owning one does not conclude they are used properly. They are a very primitive devices requiring enormous manpower inputs. Understand also the few EUV machines only function in the narrow gated arena which is just 5% of the global semiconductor market. So the US emphasis on narrow gated chips is misplaced.

    Narrow gated chips are more temperature sensitive and subject to leakage so yields are lower. So chasing this is a bust. China is already making its own 28nm lithography. China can make 7nm chips today.... So where will China be in five years when the US Fab plants are projected to come online to take over the world? China will likely meet its target of 80% self-sufficiency in five years and they will likely have EUV by then as well or developed carbon-based wafers. China will play the long game and Murians will as usual sell their chickens long before they buy the eggs.

    1. Claptrap314 Silver badge

      Re: Propagoonda... let's play GO

      Name checks out.

    2. IamAProton

      Re: Propagoonda... let's play GO

      This post is worth al least a whole 1RMB

  2. Xalran

    the whole issue anyway is that one China hypocrisy.

    There's two China :

    - the Dictatorial, Communist Chinese People Republic mainland Asia.

    - the Democratic Republic of China on the Taiwan Island

    up until the 1970s it was Taiwan that had the UN security council seat, until the CCP threw a tantrum and waved nukes... which led to Taiwan to be expelled from the UN and the CCP to get the seat.

    1. Anonymous Coward
      Anonymous Coward

      hindsight

      ... until the CCP threw a tantrum and waved nukes ...

      It wasn't that, and it wasn't even outsourcing US jobs, yet.

      At the time: "The Chinese, it turned out, had their own strategic reasons to re-open dialogue with the United States. Despite their shared Communist ideology, there was plenty of mistrust between the PRC and the Soviet Union. The PRC leadership worried that their well-armed Soviet neighbors had designs on expanding their territory into Asia. By the late 1960s, frequent border skirmishes between the Soviets and the Chinese verged on all-out war. " [History . com]

      At least by 1981, the US and China cooperated to build a listening station in Xianjing (yes, THAT Xianjin) -- The United States and China are jointly operating an electronic intelligence-gathering station in China to monitor Soviet missile tests, according to senior American officials. The facility was opened last year in a remote, mountainous region of the Xinjiang Uighur Autonomous Region in western China, near the Soviet border. Two key Soviet missile-testing bases are at Leninsk, near the Aral Sea, and at Sary-Shagan, near Lake Balkhash. Leninsk is 500 miles from the nearest point on the Chinese border, Sary-Shagan 300 miles. [NYT, 1981]

      That station was still operating as late as 1989 [INTELLIGENCE TIES ENDURE DESPITE U.S.-CHINA STRAIN, WP 1989].

      And let's not forget that it wasn't until 1987 that Taiwan changed to Democracy, becoming the nation that it is today, giving political voice to others besides the KMT who retreated from China to Taiwan and took over in 1947.

      With the benefit of hindsight it is easy to see that misteps were made between then and now. However it's important to understand history as it actually happened, especially how non-linear history is, and yet, there are patterns to see.

      Forty years from today? I'll be gone, but someone you know who is 20 today will be looking back with benefit of hindsight in amazement at the lack of foresight. (Hopefully, assuming no massive die-offs).

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