Trump script is simple, set up all the Chinese chip makers in America against China. Let them destroy each other. Not allowing American chip makers to sell to China, their biggest market, would strangle these chip makers. They will end up making chips but no one to sell to, or at least kill their biggest market, cutting their revenue deeply. The American chip makers would have serious problems disposing off their excess capacity, slicing off a big chunk of their profits. Trump did not care. They are Americans but also Chinese, or China, China, China.
The four biggest American Chinese chip makers are caught in a rut, and they have absolutely cannot do anything about it. They are completely at the mercy of gangster Trump. They can try to go to Trump on their knees to beg for some slacks. If they cannot sell to China, their profit margin would be squeezed. No more big bonuses, no more expansion plans. They may have to resort to downsizing and retrenchment.
Eventually the American chip makers have to make a deal with gangster Trump and give him a big cut. 20%, but officially reduced to 15% with another 5% not to be mentioned where it goes to. That was the deal that Trump extorted from the American Chinese chip makers, like how they squeezed TSMC to cough out billions and to transfer production to America, abandon their solid home based in Taiwan to become less competitive and less productive.
What Trump did not expect, the American Chinese chip makers also did not expect, is that China has been preparing for this moment and speeding up their quest to be self sufficient and no longer need to depend on America for the supply of chips. China has achieved this feat under tremendous pressure, making the most out of their army of engineers to do just that.
China is now telling Trump and the American Chinese chip makers, you can keep your chips. China does not need American chips anymore, not a single chip is needed. What Trump has done, to cripple Chinese growth and development with high end chips, has backfired. Trump has pushed the Chinese to the limits to be self sufficient, something he thought would be impossible, or at least not during his watch. Trump has also singlehandedly crushed the growth potential of American Chinese chip makers for now. What Trump did not ask for is that when China's chip makers are able to ramp up their production to full capacity, sell to the world at cheaper prices for the same quality, the American chip makers can start to close down their factories in America. They would left with only the American market to sell to, protected by sanctions and high tariffs. The European market would also be driven to Chinese chip makers with quality products at a price they cannot refused.
Trump has in his own way bury all the American Chinese chip makers, leading to factory downsizing and closing down, and big job losses among American workers, and the creation of a China chip making behemoth to supply to the whole world...and good riddance to bad rubbish, Trump.
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