Will now fight to take over Asia over chips star-news.press/wp

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Now they “threw the ball” on the production of chips over the years, enabling China and other Asian hubs to steam forward. So he said that Gina Raimondo, who was the American trade secretary at the time, in the interview with me in 2021. years.

Four years, chips remains a battle of the US China for technical supremacy, and US President Donald Trump now wants turbocharges and a sensitive production process that has taken other regions in perfect.

He says his tariff policy will free the American economy and bring business home, but it is also the case that some of the largest companies have long struggled with the lack of qualified workers in their American factories.

So what will Trump do differently? And considering that Taiwan and other parts of Asia have a secret sauce to create highly precise chips, is even that now they produce them and on a scale?

Semiconductors are central to power all from the washing machine to IPHONE and military nozzles to electric vehicles. These small waffles silicons, known as chips, are invented in the United States, but today in Asia is that the most advanced chips are produced in the phenomenal level.

Making them expensive and technologically complex. For example, the iPhone can contain chips designed in the US, manufactured in Taiwan, Japan or South Korea, using raw materials such as rare earth in China. They can then be sent to Vietnam for packaging, then to China for the Assembly and Testing, before being shipped to the USA.

It is a deeply integrated ecosystem, one that has developed over a decade.

Trump praised the chip industry, but he threatened the tariffs. He said the leader of the industry, a food company for the production of semiconductor (TSMC), would have to pay a tax of 100% if in the USA did not build factories in the USA.

With such a complex ecosystem and fierce competition, they must be able to plan higher costs and investment calls in the long run, significantly outside the Trump administration. Permanent changes in policies do not help. So far, some showed a willingness to invest in the United States.

Significant subsidies that China, Taiwan, Japan and South Korea gave private companies that develop chips are great for their success.

It was largely behind the American chips and science, which became the Law in 2022. years under President Joe Biden – the effort to re-embrace the producers of wires and diversification of grants, tax loans and subsidies to encourage domestic production.

Some companies like the world’s largest smartpheletpherical chipper have become the main beneficiaries of legislation, and TSMC received $ 6.6 billion for grants in Arizona, and Samsung received the estimated $ 6 billion in Taylor, Texas.

TSMC has announced another $ 100 billion investment in the US with Trump, at the top of $ 65 billion pledged for three plants. Diversification The production chip is also working for TSMC, and China repeatedly threatens to take control of the island.

But also TSMC and Samsung faced challenges with their investments, including cost installation, employment of qualified labor, construction and resistance from local unions.

“This is not just a factory in which you make boxes,” says Marc Einstein, the director of research on the market contraption. “The factories that make chips are such high-tech sterile environments, they need to build years and years.”

And despite the US investment, TSMC said that most of its production would remain in Taiwan, especially her most advanced computer chips.

Today, TSMC plants in Arizona produce high-quality chips. But Chris Miller, author Chip War: a struggle for the most critical technology in the world, claims that “they are generations behind the ultimate edge in Taiwan.”

“The question of the scale depends on how much investment is made in the USA opposite Taiwan,” he says. “Today Taiwan has far more capacities.”

Reality, decades for Taiwan passed that capacity, and despite Threats China spends billions to steal Taiwan’s ability in industry, continues to progress.

TSMC was a pioneer “model of model” in which the chips were carried by American designs and chips produced for other companies.

Riding on a wave start-up-a-up-UD-up-UT from silicone valley like Apple, Qualcomm and Intel, TSMC could compete with us and Japanese giants with the best engineers, highly qualified work and scoring knowledge and sharing knowledge.

“Can he make chips now and create a job?” Mr. Einstein asks. “Of course, but will he get chips on the nanometer? Probably not.”

One reason is Trump’s immigration policy that can potentially restrict the arrival of qualified talent from China and India.

“Even Elon Musk had an immigration problem with Tesla engineers,” says Mr. Einstein, referring to musk support for an American H-1B visa program that brings qualified workers in the USA.

“It’s a bottleneck and I can’t do anything unless he completely change his position on immigration. You can’t just magic doctors out of nowhere.”

Although, and Trump has doubled on tariffs, ordering the inquiry of national security in the semiconductor sector.

“It’s the key in the machine – a big key,” Mr. Einstein says. “Japan for example, founded its economic revitalization on semiconductors and tariffs were not in the business plan.”

Long-term influence on the industry, according to Mr. Miller, will probably be renewed focus on domestic production in many world key economies: China, Europe, USA.

Some companies could seek new markets. The Chinese technology Gigant Huawei, expanded into European markets and in the emerging, including Thailand, UAE, Saudi Arabia, Malaysia and many countries are facing the facility of export controls and tariffs, although margins are small.

“China will ultimately win – he must innovate and invest in research and development. See what he did with Deepseek,” says Mr. Einstein, referring to Chinese Ai Chatbot.

“If they build better chips, everyone will go to them. Finally efficiency is something I can now do and looking forward, it’s an ultra-high-tech fabrication.”

In the meantime, a new production environment can occur. India has a lot of promises, according to experts who say that there is a greater chance of becoming integrated into the power chain of the USA – is geographically closer, work is cheaply and education is good.

India signaled the readiness to be open to the production of chips, but faces a large number of challenges, including the acquisition of land for factories and water – the chip production is needed by the highest quality water and much.

The chip firms are not entirely at the mercy of tariffs. Pure reliability and demand for chips from major American companies such as Microsoft, Apple and Cisca could apply pressure on Trump to reverse any names in the chip sector.

Some insiders believe that the intensive lobbying by the COOK team ensured the exemption on smartphones, laptops and electronic tariffs, and Trump allegedly raised the ban on the Nvidia chips as a result of lobbying.

He wondered especially about Apple products on Monday, the trump told, “I’m a very flexible person,” I’ll be able to say, I’m talking to Tim Cook, and I recently helped a team chef. “

Mr. Einstein thinks that everything comes down to Trump eventually trying to arrange – he and his administration know that I can’t just build a bigger building when it comes to chips.

“I think Trump’s administration is trying to do is what he did with Tkotok’s idle owner. He says I won’t let you operate in the US, unless you give Oracle or another American company,” says Mr. Einstein.

“I think they’re trying to fix something like that – TSMC doesn’t go anywhere, let’s make them make a contract with Intel and have a slice asks.”

But the draft asian semiconductor ecosystem has a valuable lesson: no country can independently manage the chips industry, and if you want to make advanced semiconductors, efficiently and on a scale – will take time.

Trump tries to create a chip industry through protectionism and insulation, when it enabled the chip industry to appear in the opposite: cooperation in a global economy.

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