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My understanding is that TSMC is busy building factories in the US. Easy to suspect that this is (1) to keep up production in the event that China takes over T
by graycat 4y ago
My understanding is that TSMC is busy building factories in the US. Easy to suspect that this is (1) to keep up production in the event that China takes over Taiwan, (2) to tell China now that even if they do take over Taiwan TSMC production will not stop or be dependent on China but will continue in the US and, thus, lower the interest of China in attacking Taiwan, and (3) once the Chinese military is on the way to Taiwan possibly let TSMC be eager destroy their Taiwan factories on their way out of Taiwan and on the next flight to the US, Belgium, etc., .... Besides, if China does not act nice, they might find that they can't buy any chips to use or copy. The world might regard selling chips to Xi now like selling cordite to Hitler in 1939.
The headlines about Taiwan, I'm guessing, basically add up to a lot of desire by the media for eyeballs for ad revenue and a lot of face saving by Xi, that is, don't let the media and politician talk erode the long existing images and status of Taiwan.
Net, China has plenty to do now without making a big, real issue about Taiwan.
But there is no force guaranteed to keep Xi from making a mistake. E.g., he had China muscle into Hong Kong and violate the "one country, two systems" promise.
I'm guessing that if Xi does to Taiwan what he did to Hong Kong, then TSMC will be producing in the US and on their way out of Taiwan will junk their factories so that China gets nothing.