Religion as an opiate failed in India and China. So,
they thought that using force could do the work, and they built a
powerful military. But that too is failing as other countries, like
Russia, China and even Iran are capable of moving into a position to
counter that military advantage. North Korea even has nuclear bombs
today and sending missiles to Russia, despite all the sanctions. The
West is pressuring China not to do business with North Korea and Russia.
Why would the Chinese want to do that? Would the USA be pressured not
to do business with Ukraine and Israel?
So, when Military power
monopoly becomes less of a threat, sanctions is the current modus
operandi. Yet sanctions have also failed to work as well, even for
decades, as can be seen in Cuba, Iran and North Korea and now against
Russia as well. When all else fails, what will the USA do with the likes
of China?
The USA and the West are now trying to use technology
strangulation against China, trying to stifle China's rise by banning
Chinese tech companies and apps. It is not working as well as expected.
China is well on its way to being self-reliant in chips for its domestic
requirements. The West just fail to realize that China is in a position
of strength in having the engineering talents, the control of raw
materials, the widespread supply chain and the processing logistics to
fight its battle. The West lacks all that and is trying to start
everything from scratch. All just trying to build castles in the air,
like trying to counter the BRI with the Global Infrastructure
Investments and building the India/Middle East/Europe Corridor. Walking
blindfolded and hoping to avoid falling down is an exercise in futility.
Meanwhile the USA is boasting that it will soon dominate the
high-end chips sector that no one else can topple. Hold my beer says
China! Let the USA, Taiwan, South Korea and Japan enjoy the 'beautiful
dream to behold' for now under their Chips Alliance umbrella. Without
the Chinese market, where are those over-capacity in high-end chips
production going to end up? At MacDonalds and KFC? Good to remember that
MacDonalds is already closing outlets en-masse all over the world
because of the war in the Middle East. And selling those chips in
Walmart on their shelves is not going to last as well, knowing
supermarkets are closing outlets like fleeing a wildfire in the USA as
well.
Anonymous
Huawei's Pura 70 smartphone uses a chip that is 9% faster than that used in the Mate 60. And more components are found to be sourced domestically than the Mate 60. And with each successive launch, the more domestic components are going to be used and that is affecting even more foreign made parts that will put pressure on those foreign makers.
ReplyDeleteAccording to Kevin Wamsley of 'Inside China Business' the semiconductor sanctions by the Chips Alliance was to prevent China from having access to high-end chips now used in the two phones that Huawei put on the market recently, within six months of each other, and Huawei was not supposed to have that ability to do so. Even the Mate 60 launch months ago was thought only possible a couple of years down the road. Huawei cut short the time frame for catching up and is sending the Chips Alliance into a tailspin.
It looks like the semiconductor war with China is not succeeding as envisaged. And with that, what are TSMC and Samsung hoping to achieve frantically building facilities in Arizona, if not to counter China. What is even worse is that China is going all out with its chips production mindset, and even building lithography machines to counter the Chips Alliance and ASML. The whole plan of creating the Chips Alliance to stifle China is backfiring.
The whole problem with the USA and its leaders is that they do not see beyond their noses. They make decisions based on ego boosting and on the spur of the moment, and do not factor in the consequences before doing so, and in the process killing the enthusiasm of their partners and supporters. That those partners still fall for all their ploys is indeed mind blowing. Lessons are seldom learnt, and history keeps repeating itself.
Qualcomm has announced that Huawei has stopped buying its chips. This is the end for Qualcomm. China is its biggest customer. Without orders from Huawei, its share prices would collapse. Nvidia is also facing the same problem.
ReplyDeleteThe treacherous Washington clowns quietly allowed Intel, an American manufacturer, to sell to Huawei but stopped Nvidia, Qualcomm, TSMC, AMD from doing so. See the intent and vicious scheme to kill these Taiwanese owned chip making companies in favour of American owned Intel?
The USA has its eyes on TSMC in Taiwan, especially its expertise in setting the standard in high-end chips. The narrative being hyped up now is that if TSMC falls into Chinese hands, it would be a disaster for the USA and the West. This is the mantra that will be chanted going forward.
ReplyDeleteNow we are getting the picture of why the USA is so adamant in taking control of Taiwan and in the process getting TSMC as well. The cat is now out of the bag. Sacrificing the people in Taiwan is just going to be collateral damage and is the least of the USA's concern.
TSMC had earlier been saying that the most advanced chips will still be produced in TSMC's Taiwan facilities. Has that stand been changed in the face of further coercion is unknown.