Will China move to Taiwan to dominate the global chip market?

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There is a struggle going on in Asia that will have a very significant impact on the future. Martijn Rasser, a senior fellow at the New American Security Incubator Center in Washington, says, “By gaining control of Taiwan’s semiconductor industry, China would dominate the global market. They would have access to the most advanced manufacturing capacity and be even more valuable than the world’s oil management.”

China may decide that it is worthwhile to invade Taiwan in order to obtain chip making equipment

Rasser adds that “whoever manages the design and production of these microchips will set the course for the 21st century.” And China may see such a power worth waging war. Think about what happened to Huawei last year when the United States changed its export rules for chips.

Rasser adds, “Semiconductors are zero in global technology competition. They are everything we need to function as a society.”

Since last May, the U.S. has demanded that global foundries like TSMC, which use American technology to make chips, obtain a license before these components can be delivered to Huawei. And this includes Huawei’s self-designed chips for the company. Because we lose the ability to buyedge semiconductors, Huawei has seen a huge drop in telephone shipments (including a 70% decrease from a year ago during the first quarter).

Last month, the resigning U.S. Supreme Military Commander said China could invade Taiwan sometime over the next six years. The Biden administration may have to help defend the U.S. technology industry by embarking on Taiwan’s battle with China. Taiwan Semiconductor Manufacturing Company (TSMC) is the top contract manufacturer in the chip industry, making it Apple’s largest customer.

Fox News reports that China has flown jet fighters and long-range bombers near Taiwan in recent days. When you find that 70% of the world’s semiconductors are made in Taiwan, the importance of this issue is highlighted. The United States is concerned that if China were able to take over high-end foundries, it would allow the Chinese military to make great strides against the rest of the world.
Two weeks ago, the Biden administration blacklisted seven companies to prevent TSMC from selling advanced chips to China that could be used to make more advanced weapons for the Chinese military. The country has made no progress in the chip industry, and its largest foundry, SMIC, still has several process nodes far from the current 5 nm used by TSMC and Samsung.

SMIC and other Chinese foundries have hoped to purchase more advanced lithography equipment that will allow them to mark waffles with very thin lines. These models help determine the placement of transistors in these wafers and are essential for the production of more efficient and energy efficient chips. While it is difficult for China to acquire this gear, Taiwan does not.

The Rasser Center in New American Security says, “China has tried to get its hands on the equipment, and so far it has not been very successful.” What he says next might worry you. “So you can easily imagine a situation where Beijing decides it is worth the risk and invades Taiwan to gain control of this vital industry.

Senator Tommy Tuberville (R-Alabama) said in a statement: “Taiwan is a serious area of ​​interest not only for what they represent as a people, but also for the democracy they embrace. The free world should be concerned about their central role China would be wrong to believe it can eat Taiwan.

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