Biden meets Taiwanese chip emperor in Arizona: why it matters
Joe Biden in a semiconductor factory. Taiwanese. On American soil. It may seem strange, but these components put together say a lot not only about the commercial policy but also the geopolitical and strategic one of the United States of America. That of microchips is one of the decisive matches identified by the White House in its dispute with China.
It is no coincidence that the Chips Act and the subsequent restrictions licensed by Biden are aimed precisely at enhancing domestic production and above all trying to exclude Beijing (at least partially) from the global supply chains of the sector. Also because semiconductors are not only used to turn on computers and smartphones, but also for all the latest generation military weapons and vehicles. Interrupting the flow of chips to Beijing (as well as to Moscow) is also considered fundamental in the war sector. In a nutshell: in the hypothesis of future wars (or present, as in Ukraine) the endowment of advanced semiconductors or not can make the difference.
And here then is the date of December 6 to be circled with a red marker, the day on which the president of the United States will travel to the TSMC facility, Taiwanese chip manufacturer and absolute global leader in the manufacturing and assembly sector (with over 50% of the share, given that it still rises in relation to the latest generation chips). The world’s largest contract chipmaker is building a $12 billion plant in Phoenix, Arizona.
The Taiwanese semiconductor giants decisive in the US-China challenge
For this reason, the tech giants made in Taiwan have for now always kept the door open to China, also on the advice of the local government: to pursue their own economic interests, of course, but also to try to avoid the risk of military action . Morris Chang has also just met Xi Jinping about ten days ago at the APEC summit in Thailandthe highest-level cross-Taiwan Strait dialogue since time immemorial.
The TSMC founder also said last week that the company is planning to produce chips with advanced 3-nanometer technology in its new Phoenix plant, but plans are not yet fully finalized.. TSMC’s Arizona factory has sparked concerns in Taiwan, where it produces semiconductors it’s the backbone of the economy, for a “goodbye to Taiwan” trend among chip companies. TSMC, which makes most of its chips in Taiwan, is also building a factory in Japan.
Both the United States and Europe are providing billions of dollars in incentives to push companies to produce chips closer to home, especially courting Taiwanese companies. In August, Biden signed into law a law funding $52.7 billion for semiconductor chip manufacturing and research. The Chips and Science Act also includes a tax credit for investments in chip facilities worth an estimated $24 billion.
But there are those who fear that a greater link with the US is a lesser one dependence on Taipei may advance the risks for Taiwan itself. A paradox, that the main protector of Taiwan, that is the US, could somehow risk contributing to denting that silicon shield.
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