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US warns losing access to Taiwanese chips could break the economy
The Register ^

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 ...


TOPICS: News/Current Events
KEYWORDS: chip; chips; manufacturing; taiwan
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To: Ex gun maker.; EagleOne

Taiwan Semi is already building a big plant in North Phoenix and Intel is adding another phase to what they have down on the south side of town.


61 posted on 07/22/2022 6:20:06 PM PDT by KC Burke (If all the world is a stage, I would like to request my lighting be adjusted.)
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To: FarCenter

Really? Anyone hear of Gavin Newsome - making California a concrete block on the American economy all by himself......

WWG1WGA !


62 posted on 07/22/2022 6:21:57 PM PDT by Billyv ( Ephesians 6:11 for we battle not against flesh and blood...Pray for our leaders and nation )
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To: FarCenter

I bought some bolts today on Amazon; the description said they were “made in Taiwan, province of China.”


63 posted on 07/22/2022 6:30:03 PM PDT by odawg
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To: FarCenter

They’re just looking for more fig leaves.


64 posted on 07/22/2022 6:30:32 PM PDT by Irenic
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To: EEGator

Arizona, north of Phoenix, I believe. Huuuuuge facility. Gina must not know that. Another Biden moron.


65 posted on 07/22/2022 6:42:26 PM PDT by DennisR (Look around - God gives countless clues that He does, indeed, exist.)
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To: FarCenter

Do you think it would be a smart idea to start making our own “Taiwanese products” ?


66 posted on 07/22/2022 6:45:35 PM PDT by Baldwin77 (Super, Duper, Ultra Maga, subject of the Ultra Maga King Donald)
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To: ealgeone

Your post said that we should get hoping, not hopping.

As for having chip making facilities here, well, local, state and Federal government entities were all running off new chip fabs and opposing expansion of existing facilities for decades.


67 posted on 07/22/2022 6:53:31 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: FarCenter

So brilliant and novel that CNBC put this on.


68 posted on 07/22/2022 7:00:28 PM PDT by Varsity Flight ( "War by the prophesies set before you." I Timothy 1:18)
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To: visually_augmented

Somebody better warn Raimondo that Joe is China’s lapdog and that anything China wants, China gets. Who do you think will be taking over Taiwan in the next couple years - of course the Biden administration will be “concerned” but won’t lift a military “finger”.

Don’t forget “monitoring closely” with “A laser like focus” at summits with breakout sessions.


69 posted on 07/22/2022 7:01:21 PM PDT by rxh4n1
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To: FarCenter

Why did the US stop manufacturing chips?


70 posted on 07/22/2022 7:07:13 PM PDT by gitmo (If your theology doesn't become your biography, what good is it?)
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To: Cold Heart
Quit putting chips in places they are really not needed.

Exactly. Too many items have chips added into them because the manufacturers knew they could put cheap chips into something to upsell overpriced options that customers really don't want.

71 posted on 07/22/2022 7:09:04 PM PDT by T.B. Yoits
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To: SaveFerris

Yes it does, and they do.


72 posted on 07/22/2022 7:09:33 PM PDT by DoughtyOne (I pledge allegiance the flag of the U S of A, and to the REPUBLIC for which stands.)
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To: DoughtyOne

He’s so obvious; it’s painful.


73 posted on 07/22/2022 7:10:35 PM PDT by SaveFerris (The Lord, The Christ and The Messiah: Jesus Christ of Nazareth - http://www.BiblicalJesusChrist.Com/)
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To: Spktyr

Forgive the misspelling.


74 posted on 07/22/2022 8:02:18 PM PDT by ealgeone
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To: EEGator
It takes something like a year (or used to) just to create the lenses used to photo etch micro circuitry on a chip. The Glass used in the lens has to be flawless and it spends a number of months slowly cooling in a refractory. (My recollection from back in the late 80s.) It might be different now.

https://www.corning.com/asean/en/products/advanced-optics/product-materials/semiconductor-laser-optic-components.html

Losing Taiwan before the U.S. re-enter semiconductor manufacturing on a large scale would be really damaging to us and our military.

75 posted on 07/22/2022 8:03:53 PM PDT by Pete from Shawnee Mission ( )
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To: ProtectOurFreedom

To do that would require CARB, the EPA and a whole slew of BS laws to be shitcanned.

By law, a car is required to possess on it to be sold in US(this list is not everything)

Smog equipment
Obd2 compliant systems
Backup cameras
Tire pressure sensors
Airbags
Interior trunk latches in cars with a separate trunk or storage compartment
Seat belts

This is all off the top of my head.
Obviously most of this does not require chips, but the excessive amount of regulations are a burden. Not to mention epa mandating fleet wide MPG numbers pulled out of their asses and not based in reality.

It would be more feasible to return to a single computer for engine and transmission control, then eliminate chips currently. Moat cars these days have at least 5 dedicated computers for various things due to canbus systems, which may also be some bs law too.


76 posted on 07/22/2022 10:38:50 PM PDT by SPDSHDW (Buy JHP ammo, Level 3/4 armor and rifles. Won’t be able to for much longer, and we’re gonna need em)
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>> Taiwan controls most of the world’s chip manufacturing capacity

A good excuse to keep China at bay.


77 posted on 07/22/2022 10:42:52 PM PDT by Gene Eric (Don't be a statist!)
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To: Liberty Valance

>> Samsung is building chip mfg plants in Austin but thats still years off.

Samsung is South Korea, no?


78 posted on 07/22/2022 10:44:05 PM PDT by Gene Eric (Don't be a statist!)
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To: FarCenter

Tell you what, have pelosi give up all money trading stocks. Every penny.


79 posted on 07/22/2022 11:00:36 PM PDT by minnesota_bound (Need more money to buy everything now)
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To: gitmo

Environmental laws and high labor costs were factors.

But once the wafers are fabbed, they are sent to low-cost locations in SE Asia to be cut into individual dice, tested and bonded into packages for mounting on printed circuit boards.

Plus, most of the customers for chips are electronics manufacturers in Asia making smartphones, tablets, PCs, networking gear, etc.

Texas Instruments, Intel, Micron and Global Foundries have fabs in the US. There are quite a number of fabs in the US that are older, using obsolete production line widths, or doing analog, power, and other specialized chips. I’d guess that a number specialize in parts for the military.

https://en.wikipedia.org/wiki/List_of_semiconductor_fabrication_plants


80 posted on 07/23/2022 4:21:33 AM PDT by FarCenter
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