Hard times befalling on American chip manufacturers. There is no way out but to downsize and plan for more retrenchment. American workers in these factories are in dire straits, with unemployment staring in their faces. They only have Biden and his clowns like Raimondo, Blinken and old lady Yellen to thank for.
How can these silly buggers come up with the plan to sanction China, to cut off the biggest chip market and consumer, ie China. China alone easily consumed at least 20% of the sales of American's chip manufacturers. Without China, the alternative is obvious. Sales down, all the over capacity, machinery and manpower must be downsized. No one else can replace the buying power of China. There is no more room for growth and expansion. Profits would turn negative. For their own survival, these manufacturers have to do the necessary.
And China is not taking these sanctions lightly. China is gearing up its own manufacturing capabilities and abilities to produce the chips it needed. And now that China is more or less self sufficient in most of the chips, Xi has announced that China would now only use its domestically manufactured chips for products Made and Used in China. The biggest casualties are Nvidia, AMD, Qualcom, Intel and practically every chip manufacturers in the US, plus those in Japan and South Korea, and also those in Europe. TSMC would not be spared. It can continue to produce chips in the Arizona, US, but with no buyers.
Biden and his clowns have done an incredible job to kill the American and pro American chip manufacturers with their stupidity. There is no turning back once China is self sufficient in chip manufacturing. The American and pro American chip manufacturers would be lucky to stay in business without making losses. There is just no more scope for growth without the Chinese market. Period.
PS. When China starts to sell chips to the world at affordable prices, these American manufacturers would have to fold up. Downsizing and retrenchment would not save them. They simply cannot compete.
10 comments:
The sickest country on earth is shooting themselves in the head, committing seppuku, jumping off the Empire state tower concurrently.
The number of catastrophes inflicted by the USA, on itself and others, is mind boggling. And that it is coming from the USA is unthinkable.
Just take the recent sanctions on Russia alone, which is killing Europe's industrial reputation in one fell swoop. Not only that, the economies of the EU countries are also going downhill and sinking like the Titanic. Instead of Russia suffering or collapsing, it is the EU that is taking the hit. And the USA is laughing all the way to the bank, with its oil and gas sales to the EU at exorbitant prices, and Europe's manufacturing being lured to the USA using subsidies. Talk about taking advantage of another's misery.
The Chips war is going to kill off the Chips Alliance. It is a blessing in disguise for China, as otherwise it will always be subject to blackmailing in the chips sector by the USA, Japan and South Korea. China has been forced to be self-reliant and is prioritizing its chip ventures. Never bet against the Chinese when they start to be serious about any new venture. China will dominate the chips sector the same way they dominated EVs.
However we look at it, or think about it, the Chips Alliance can never fulfill its objective of stifling China. When China controls the raw materials, the advantage of manufacturing scale and the domestic market, who can compete on the global market that it is also moving into? Remember that China controls the rare earth supply and processing facilities which the Chips Alliance does not have that big supply chain advantage.
But those Europeans, with their incurable stupidity, never learn. It is an irony that Africans are learning fast from their past under colonial rule, but the Europeans, supposed to be more intelligent and more advanced than the Africans are really turning into zombies. And that is never more evident than having leaders like Olaf Scholz, Annalena Baerbock and Ursula von der Leyen leading their country or region.
The same can be said of the USA itself. Just imagine two dementia tainted rusty old dinosaur are the best they can find to run for President from a country that is touted to have the best education facilities in the world. Oh, lest I forget, the best that came out of those highly touted Universities are almost always foreign students, not locals to be realistic. And they cannot be part of 'the cream of the crop' for the political establishment to choose from.
Even then, such talents may be accused of spying for China, in research facilities, academic institutions and in Government, at the whims and fancies of the USA Government. The moment those countries that these students came from are rising to compete with the USA, they are targeted. It does not matter whether they are from China or India. That is the reality and must not be forgotten.
Hi Anon 10.30
What's you expect when they had idiots like Olaf Scholz aka Oloaf or Oak Scrooge or Shove or Screw.
Then Annalena Baerbock alias Bare Buttocks.
Next Ursula Von der Leyen aka Ursula Born the Liar.
Cute ley! This Ursula any connections with the Malay and Indian ah names ah?
You see the Malay had so and so as son or daughter of so and so.
Indians sama sama Name and son or daughter of so and so.
Anak lekai as a/l and anak perampuan as a/p.
So Ursula von as der as the Leyen as surname of Father lah.
We know lah your name follows the surname of your Father lah.
Why made it so long ah?
You loved long long ah?
So actually as the Chinese saying All men are Bros as in the Four Seas, why you imbeciles want to fight and fight ah?
Oh forgot not including the South China Seas as these Barbarians wanted to pick a bone with China.
America - Suicide by Stupidity
Hahaha
Even MacDonalds is downsizing its chip making facilities due to mass closure of outlets, both in USA and elsewhere, particularly in the Middle East. And of course, retrenchment follows as well.
But even with Tesla laying off workers by the thousands, chip makers cutting production and laying off staff, retail outlets closing shop due to theft, supermarkets closing outlets fast and furious, the USA job market is still reported to be tight. In other words more jobs than job seekers. How they interpret the job market figures is a mystery to me.
Tight means no jobs.
Tight means no monies
Tight means no monies no honeys
Tight means very tight must pay monies then can go in no tight see.
They gave you KY aka Kuan Yew
Cheers
When China starts to sell chips to the world at affordable prices, these American manufacturers would have to fold up. Downsizing and retrenchment would not save them. They simply cannot compete.
The only chips that China may not be able to compete with in terms of pricing are chips from chipmaker MacDonalds and KFC, LOL. These two are closing outlets everywhere. They should form their own 'Chips Alliance' to survive.
Like carmakers in Detriot, even downsizing will not save those chipmakers lured to Arizona. That place is going to become the graveyard of chip manufacturers. I believe the USA and its Chips Alliance partners have now seen the writing on the wall and are trying to prevent China from competing with them. Hence, they sent pitiful Grandma Yellen tottering to Beijing to try to coerce China to stop overproduction. Too little too late I would say.
Overproduction also must be able to sell.
How can you said must not overproduce?
Cannot sell also no use.
That's me the Rest of the World still wants to buy and loved China's products.
Why? Because China wanted to be friend's to all and you Western Barbarians just to chiak and bully peoples one!
Chinese Saying A person without a smiling face better don't open shop.
Sure closed shop.
See Indians and the Whites where got smiling faces.
All pretended to be high and mighty
That's why not that's me
Apology
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