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118

Taiwan pressured to move 50% of chip production to US or lose protection (arstechnica.com)

submitted 3 days ago by 666@lemmygrad.ml to c/news@hexbear.net

32 comments fedilink hide all child comments

"What's natural for Taiwan is we produce 95 percent" and "we feel great about it," Lutnick said, conceding that "you can imagine when someone has 95 percent, convincing them that they should only have 50 percent. That's a lot" to lose.

But "Donald Trump would say it's not healthy for you or healthy for us because we protect you, and for us to protect you," then "you need to help us achieve… reasonable self-sufficiency," Lutnick argued.

To close the deal with Taiwan, Lutnick suggested that the US would offer "some kind of security guarantee" so that "they can expect" that moving their supply chain into the US won't eliminate Taiwan's so-called "silicon shield," where countries like the US are willing to protect Taiwan because "we need their silicon, their chips, so badly."

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[–] vovchik_ilich@hexbear.net 27 points 3 days ago (1 children)

The US doesn't have the infrastructure or the control over industry to have significant semiconductor movement from Taiwan (PRC territory). As has happened with all other semiconductor pipedreams in western liberal nations, it will crash with the reality of immediate profits and stock value growth vs huge capital investment in a heavily capital intensive sector. It simply cannot happen, and if it's attempted, it will be the crash of global semiconductor industry

[–] Awoo@hexbear.net 23 points 3 days ago

Oh I'm not saying it can do it. Just saying that if it could do it, it would not be good for Taiwan.

The equipment isn't even the main issue. The biggest issue is they do not have the educated and skilled workers for it. You can't just make 50% of the people in this industry move country, will never happen.

Building the skillsets that have developed in Taiwan over decades of the industry's growth in a completely different country is not a simple task.