Posted on 07/22/2022 4:43:39 PM PDT by FarCenter
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 interview with CNBC as part of her plea for Congress to aid a major US semiconductor manufacturing expansion by passing the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, which would unlock $52 billion in subsidies for new plants and research efforts.
"If you allow yourself to think about a scenario where the United States no longer had access to the chips currently being made in Taiwan, it's a scary scenario," Raimondo told CNBC. "It's a deep and immediate recession. It's an inability to protect ourselves by making military equipment. We need to make this in America."
The issue is that Taiwan has faced ongoing aggression from China, which claims the self-governing island nation as its own and has not ruled out using military force to "reunify" the two. This has sparked fears that China could invade Taiwan and seize its manufacturing plants, which are run by, among other chipmakers, three of the world's largest contract chip manufacturers - it hte fabs aren't deliberately destroyed first.
This scenario would spell big trouble for the US because Taiwan produces 90 percent of the leading-edge chips that are bought by the country, according to Raimondo.
She is likely referring to TSMC, which Reuters said controls 90 percent of global output for such chips, citing industry estimates. This includes chips designed by companies such as Apple, Nvidia, AMD, and Qualcomm, and they are used in everyday devices such as smartphones, PCs, and servers. And then there's the whole military kit issue.
(Excerpt) Read more at theregister.com ...
Good thing paul piglosi knew about this to do some insider trading!
Duh. Anyone with half a brain cell saw this YEARS ago.
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
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Bright bulb. She just figured this out after a year-and-a-half.
I wonder if the department head ever thought of generating the capabilities in the US. Slow Joe has to have the most incompetent and corrupt cabinet ever.
Woohoo! 🎉🎉🎉🎉
More money for Nancy!!!!
Dims don’t think
There go Buttplug’s EVs
There used to be a Defense Industrial Board that looked at these issues. It was eviserated by both Bush I and Clinton.
Darn, we were so close to a new economic golden age due to the brilliant and forward thinking Biden policies.
So close.
(it’s a scary scenario,” Raimondo told CNBC. “It’s a deep and immediate recession. It’s an inability to protect ourselves)
This is known as Building Back Better(TM).
Anyone with half a brain should have fought this YEARS ago. The American people do not get a pass for this.
Who knew there was an extra 52billion laying around to be “unlocked”?
I got news for ya, Gina. It’s already broken.
Quit putting chips in places they are really not needed.
I think TSMC is setting up a facility in either Arizona or Texas.
It takes years to build out the facility.
Yup. It appears there are very few informed American patriots in DC.
You forgot EVIL!
There was a time many years ago these chips were made right here in the USA.
Santa Clara CA and probably other locations as well.
I know this is true because I helped my brother fill out his job application to work there.
They even hired him, and he bragged about having that manufacturing job like he had invented the chips.
Of course that is not the most “Green” process imaginable and actually a bit hazardous.
Couple that with offshoring GREED and it is no wonder we now have to beg for critical components from overseas.
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