TSMC founder Morris Chang raised eyebrows by warmly greeting the Chinese president during a rare face-to-face encounter
Taiwanese billionaire Morris Chang has dismissed speculation that the Taipei government orchestrated his encounter with Xi Jinping at last week’s Asia-Pacific Economic Cooperation (APEC) summit in Bangkok, saying it was his own idea to warmly greet and congratulate the Chinese president when their paths crossed.
The above is quoted from RT.
Why should this meeting and greeting raised eyebrows? Chang was born in Ningbo, China. He is a Chinese and it is only cordial and polite for a Chinese to greet the President of China. Chang and his TSMC are now the hot potatoes in China US relations. The Americans are uprooting TSMC, lock, stock and barrel to the Arizona desert in the US. Chang has complied so far despite having many factories in China other than Taiwan.
If the process goes as planned, TSMC would be operating mainly in the US and would possibly be told to cut off 60% of its main business in supplying chips to China. What would be left would be 40% of its main business. Is this a good deal for TSMC? Not forgetting the billions needed to build a completely new plant in Arizona and all the location costs and the higher operating costs in the US.
Without the 60% China business, TSMC would become less than half of its former self. What is ominous is that it would be fully under the control of the Americans in practically everything it does or intend to do. It's business with China is as good as gone with the wind. It would also be at the mercy of the American companies like Apple, Nvidia, Qualcomm, Intel etc etc.
Why would Morris Chang go along with this dreadful American proposal that could easily bankrupt TSMC or be taken over or be stolen by the Americans? Would it not be a better option to stay put in Taiwan, save all the relocation costs, be free from the oppression and coercion of the Americans and retain 60% of its business with China? Why is sacrificing 60% of its business a preferred option over losing 40% of its American business?
Staying in Taiwan, retaining 60% of business and staying with the biggest and growing China market and with freedom to do as he pleases without the risk of being acquired or robbed by the Americans must be the rational choice of any business honcho. The choice of moving to the US is looking like digging a hole to bury himself and TSMC.
Morris Chang is a very experienced businessman and cannot be making such an illogical and losing proposition to squander away his lifelong achievements so willingly. What is the catch?
Moving to the US is a good as moving TSMC to its burial ground for good. TSMC would soon be no more.
5 comments:
Not everything is going as planned for TSMC moving it's main manufacturing facilities to the USA, the worst place to do so of any. Lack of skilled workers, lack of supply chain support, water shortage and high cost are already problems that can be foreseen. There are many traps already laid by the Biden Administration to entice foreign chip manufacturers to the USA, but all basically fabricated lies.
The USA is making sure TSMC does not fall into China's control, and that is the truth. Nothing more, nothing less. Killing TSMC, if it happens, is just collateral damage, so long as the USA achieve it's objective of preventing high end chip manufacturing falling into China's hands. Whether TSMC or Samsung survives or not is secondary. We have seen what the USA is doing to Europe, allies or not.
Of the US$52 billion said to be injected to help Chip manufacturers inside the USA, the biggest con uncovered was that the bulk of the money goes to help those USA owned manufacturers like Intel, Nvidia and Qualcomm among others. It is not an act contrived to help foreign manufacturers like Samsung or TSMC. TSMC, according to sources, have not received a single cent yet of the help promised to them to relocate to the USA. And they have already sank billions of US$ to build up their facilities in the USA. They are all going under the bus.
Without access to the China market, who do they hope to sell to? The cost of production in the USA is multiple times that in Taiwan and South Korea, and their products surely cannot compete globally. They can sell to the Europeans and rip them off once again. Silly Europeans will be forced to buy everything from the USA in time, when the rope tightens around their neck.
Right now, I mean today, chip manufacturers are already dumping inventories amid plummeting prices, all due to cutback of purchases by China. China has been developing it's own chips for it's wide ranging manufacturing hub, and is going to cut back more imports of more foreign made chips going forward. That spells nothing but gloom and doom for those chip manufacturers congregating in the USA. They can jump and shout about being the biggest chip manufacturer in the world, but without a big market, what is there to shout about?
Whether publicly said or not, Morris Chang is obviously regretting TSMC's move to the USA for sure. All his lifetime achievements is going to be hijacked by the USA.
Is Morris Chang an idiot? Throwing billions into USA knowing very sure that they can all be confiscated by the Americans with fake and fictitious charges?
Even German manufacturers are avoiding the USA and opting for China. Big names like BASF, Siemens, Mercedes and Volkswagen are making a beeline for China.
And even BMW, unsurprisingly, is moving most manufacturing out of Little Britain and into China. The leaders of these big conglomerates are also not stupid and are following the direction of the wind.
So, is Morris Chang and idiot? The Chinese had this saying: 'Genius in making decision in his whole life, but just one stupid decision ends it all'. Make your choice!
Shall l say
just let turncoats destroy themselves.
Period
https://www.storm.mg/amparticle/687917
Why was the DPP defeated in the nine-in-one election? The founder of the party said that these 3 reasons are the key!
The DPP suffered a disastrous defeat in the nine-in-one election, and the outside world is curious about how the DPP will respond to the 2020 presidential election. Hong Qichang, the former chairman of the SEF and the founder of the DPP, analyzed that there were three factors for the DPP's defeat.
According to the Hong Kong media "China Review News", Hong Qichang said that the DPP's defeat was due to three factors, namely "people's livelihood and economic issues, government governance capabilities, and cross-strait relations issues." He took Kaohsiung as an example. Due to the stagnation of economic development, employment opportunities and salary continued. Deterioration, industrial investment and market consumption have stagnated. Kaohsiung mayor-elect Han Kuo-yu's appeal to get rid of "Kaohsiung is old and poor" has worked and won the support of voters.
In addition, Hong Qichang explained that the blue camp forces and Taipei Mayor Ke Wenzhe, a total of 16 counties and cities, all intend to communicate with the mainland, forming a "local encirclement of the central". President Tsai Ing-wen will cause a lot of pressure.
"Mainland China closed the door, and Tsai Ing-wen had no choice but to go to the US-Japan alliance." Hong Qichang believes that Taiwan must choose its political stance very carefully and not misjudge the situation. It is suggested that Tsai Ing-wen must establish cross-strait communication channels to help Taiwan's future development.
九合一選舉民進黨為何大敗？創黨大老說這3原因是關鍵
九合一選舉民進黨慘敗，民進黨對2020的總統選舉會如何應對也讓外界好奇。前海基會董事長、民進黨創黨大老洪奇昌分析，民進黨大敗有3因素。
根據香港媒體《中評社》報導，洪奇昌表示，民進黨大敗有3因素，分別為「民生經濟議題、政府治理能力、兩岸關係議題」他以高雄為例，因經濟發展停頓，就業機會、薪資持續惡化，產業投資、市場消費停滯，高雄市長當選人韓國瑜訴求擺脫「高雄又老又窮」就發揮效果，贏得選民支持。
此外，洪奇昌說明，藍營勢力加上台北市長柯文哲共16縣市，都有意和大陸做交流，形成「地方包圍中央」，往後藍綠不僅有兩岸議題，更有地方與中央的爭議，對總統蔡英文會造成不少壓力。
「中國大陸把門關起來，蔡英文不得已只好走向美日聯盟」洪奇昌認為，台灣要非常審慎選擇政治立場，不能誤判情勢，建議蔡英文勢必要建立兩岸溝通管道，才有助於台灣未來發展。
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