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Global Chip Shortage Underscores Need to Diversify US Supply Chain: China’s Taiwan intimidation and its domestic semiconductor investment threaten US tech sector
Epoch Times ^ | 05/10/2021 | Fan Yu

Posted on 05/10/2021 8:03:07 PM PDT by SeekAndFind

The continuing global semiconductor shortage has highlighted the United States’ dependence on a fragile global supply chain of chip manufacturing that’s concentrated in Asia.

Amid this environment, China’s increasingly combative stance against Taiwan—along with its massive domestic investment into chipmaking—is a key risk to the security of America’s chip supply.

The worsening global computer chip shortage has been destructive to several industries and hurt consumer pocketbooks.

While some U.S. automakers saw output disrupted late last year due to chip shortages; more recently, they have resumed production, just without certain “smart” features that require such chips. The domino effect is a lower supply of new cars, which drives up prices. Japan’s Sony Corp. recently blamed a lack of supply of its PlayStation 5 console on production stoppages due to a shortage of chips.

Supply constraints have hit other home appliances—all driving up consumer prices—due to chip scarcity.

While several factors have led to the shortage, the key reason is last year’s semiconductor production stoppage due to the CCP virus pandemic. That supply shock was worsened by pent-up demand from businesses, as consumer spending ramped up globally; the demand is augmented due to consumer products, from toothbrushes to coffee makers, now requiring chips, because of “smart” features and internet connectivity.

That’s put pressure on the U.S. strategy of mostly outsourcing its chip manufacturing. While the United States is home to several semiconductor companies such as Intel, AMD, Qualcomm, and Nvidia, these chip designers have outsourced actual production to Asian fabricators or foundries.

(Excerpt) Read more at theepochtimes.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: china; chips; elonmusk; intel; supplychain; taiwan; tesla; tsmc

1 posted on 05/10/2021 8:03:07 PM PDT by SeekAndFind
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To: SeekAndFind
The U.S.-based Semiconductor Industry Association estimated that only 12 percent of global production is U.S.-based as of late 2020, compared to almost 40 percent in 1990.

Like most other outsourced products, computer chips are cheaper to produce in Asia. But unlike other manufacturing processes, production can’t be easily moved. It’s an immensely complicated process and takes tens of billions of dollars of upfront investment.

That is why the world’s biggest chip fabrication company, Taiwan Semiconductor Manufacturing Co. (TSMC), plays such an important role in global chipmaking, and why China—and most recently the United States—have feverishly invested in chip manufacturing capabilities.

2 posted on 05/10/2021 8:03:35 PM PDT by SeekAndFind
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To: wattojawa

Ping.


3 posted on 05/10/2021 8:06:13 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
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To: SeekAndFind

“threaten US tech sector”

Ha! It’s a lot bigger than that. It threatens every sector that uses computers, networking equipment, and embedded processors.

My car, coffee pot, door lock, stove, toaster, garage door opener, television, and refrigerator all tell me they are feeling threatened.


4 posted on 05/10/2021 8:08:03 PM PDT by ProtectOurFreedom (“No man’s life, liberty or property are safe while the Legislature is in session" - Gideon J. Tucker)
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To: SeekAndFind

Can we move Taiwan to the US? We could move Massachusetts, New Jersey and New York to Taiwan. Or we could just make a straight trade and move California. Either way I’m good.


5 posted on 05/10/2021 8:12:24 PM PDT by wgmalabama (Tag line for rent. )
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To: SeekAndFind
Is this why Playstation 5 is so hard to get?
6 posted on 05/10/2021 8:14:18 PM PDT by Gay State Conservative (Trump: "They're After You. I'm Just In The Way")
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To: SeekAndFind

TSMC is building new facilities in AZ.

Some of the issue is that facilities are converted to modern chips and auto makers need chips that are two generations out of date.


7 posted on 05/10/2021 8:18:00 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: KC Burke

wouldn’t it be poetic justice if this shortage of CHIPS brought down the global elite’s dream of a technocratic “utopia”/DYSTOPIA?


8 posted on 05/10/2021 8:21:38 PM PDT by MAGAthon
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To: wgmalabama
We could move Massachusetts, New Jersey and New York to Taiwan

NOOOOOOOOOOOO !!!! Keep them out of here !!!!!!!

9 posted on 05/10/2021 8:22:12 PM PDT by TheCipher (To my mind Judas Iscariot was nothing but a low, mean, premature Congressman. - Mark Twain)
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To: wgmalabama

RE: We could move Massachusetts, New Jersey and New York to Taiwan

Well, there is an ongoing joke among the students that the elite Massachusetts college: MIT actually stands for Made In Taiwan :)


10 posted on 05/10/2021 8:23:53 PM PDT by SeekAndFind
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To: SeekAndFind
While some U.S. automakers saw output disrupted late last year due to chip shortages; more recently, they have resumed production, just without certain “smart” features that require such chips.

Funny. When I win the big lottery, I plan on starting my own auto company. It'll be full of practical, simple vehicles that have little to none of all the crappy extra electronics and such in 'em.
11 posted on 05/14/2021 7:31:20 PM PDT by Svartalfiar
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To: Gay State Conservative
Is this why Playstation 5 is so hard to get?

Six sentences into the excerpt...

Japan’s Sony Corp. recently blamed a lack of supply of its PlayStation 5 console on production stoppages due to a shortage of chips.
12 posted on 05/14/2021 7:32:11 PM PDT by Svartalfiar
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To: SeekAndFind

Shortage of Non-Chinese Made Semiconductors - bump for later...


13 posted on 06/24/2021 9:25:38 AM PDT by indthkr
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