Jensen Huang of Nvidia visited China in the midst of Trump's trade war against China and the world in general. This is a very sensitive time to make such a visit and its importance to the viability and well being of Nvidia cannot be underestimated. The visit would definitely be frown upon by Trump and his anti China hawks.
Big tech companies are crumbling. Nvidia, AMD, Intel, Micron, Qualcomm and Dutch ASML and Taiwan's TSMC are also badly affected. The growth of these companies is choked by the American regime, stopped from selling to their biggest customers. All the expansion plans would have to be halted. All the innovation of new and advanced chips would have a shrunk market to sell to. The effort would be wasted for the stupidest reasons imposed by the Washington regime.
Nvidia is losing $5 billion revenue per quarter from China. Intel just lost $100 billion as all its chip contracts to China has been cancelled. China is also the biggest customer of AMD, Intel, Micron, Qualcomm and selling to China is as good as gone forever. The joke is that Nvidia cannot sell its most advanced chips to China and has to compromise with a substandard chip to sell to China. It is like selling a Ferrari with a Toyota engine and expecting China to buy it.
With all the controls and sanctions, China is not taking it lying down. China has doubled up on its innovation to replace what the big techs are forbidden to sell to them and coming up with new products on their own. ASML's EUV machine costing billions cannot be sold to China is only part of the story. The bigger story is that China no longer needs them and ASML has just lost the China market. TSMC would eventually only have the American market to sell to, without China. All the big expansion plans for more plants in the USA would become white elephants, overcapacity but no big customer like China to pick up the chips.
Most of the big tech companies would have to downsize and cut jobs when the projected sales have hit a false ceiling, unable to sell to their biggest customer that could absorb a third of their production. This is gone for good. Who else can replace the China market? The American and European markets just can take in so much and nothing more. And they are not expanding unlike the Chinese market that has much more room to grow. They would all be replaced by Chinese big tech companies selling better and cheaper chips to the world.
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Trump will still pretend he is making USA great again and bringing back jobs to the country and making USA rich again. Manufacturing may reshore to USA, but jobs are not going back, with machines taking over. Honestly, just printing toilet papers is good enough to make the USA rich again, right? Why go to all the trouble of fighting a tariff war?
Trump is not really protecting USA manufacturing using tariffs against China, which is a lame and empty excuse, because there are no such industries existing in the USA that needs such protection. If there are that many manufacturing facilities now already existing in the USA, why does they USA still need to import US$500 billion worth of goods from China? People can see the contradiction by simple logical thinking as to why Trump is forever touting about bringing back manufacturing to the USA when it already has them to produce those goods.
Trump needs all the money from tariffs to fund his tax cuts for the billionaires like himself clear and simple. And the bill with tariffs added has to be paid by USA consumers. That is provided there are going to be products still available at retail outlets a month of two down the road.
Some delusional morons are talking about substitutes that still needs to come out of a factory or factories to be set up to produce them, not within a month, but probably a year or two. And which country wants to do that knowing that they cannot compete with Chinese manufacturers even in their own backyard. Trump will tell USA consumers to 'hang tough' for a year or two. Laughable indeed.
Now, before leaving, China's spokesperson wanted to 'make it clear' that there had been no phone contact between Xi and Trump, with no negotiating ongoing. China wants the USA to remove those tariffs first before any negotiation can go forward. I think that message is already as certain as the sun rising from the East.
On the other hand, Trump and his administration clowns are still boasting that the USA is already talking to 200 countries out of the 195 countries in the world, but no deals so far being reported. Even lying must be careful not to expose the ridiculousness and ignorance behind it.
Former ASML head scientist drives China’s latest EUV breakthrough
Chinese researchers have cracked a barrier to the home-grown production of advanced chips by building an extreme ultraviolet (EUV) light source platform that operates at internationally competitive parameters, according to a research paper.
The team, from the Chinese Academy of Sciences’ Shanghai Institute of Optics and Fine Mechanics, was led by Lin Nan, previously head of light source technology at ASML in the Netherlands.
Tariffs on China is not only affecting the retail sector in the USA; it is destroying jobs in many other sectors as well. The creation of jobs has not been seen yet, but the destruction of jobs is happening right before our eyes.
The trucking sector, in the frontline, and dock workers are feeling the first whammy right now, with truckers idling with fewer jobs. With lesser or no earnings, what would they depend on for survival? If they are working for a trucking company, there is the bigger fear over the loss of their job. If they own their trucks, a day idling is a problem for them to pay the loans for their trucks, on top of maintenance costs.
Factories also depend on imported parts from China, and with tariffs and parts stuck at ports or cancelled, factories cannot operate optimally to make affordable goods and may have to cut production lines and do away with jobs that are not needed. With more people losing jobs, even Federal jobs, how is the retail sector going to survive with people having little to spend? Again, the same result of closing outlets and letting people go. This is all the compounding problems resulting from just the simple effect of the imposition of tariffs. Problems that have obviously not been foreseen.
Trump and his administration are really desperate now to end this madness, but being a problem that they created, China is not going to back down and will dig in. Sure, China is also feeling the effect, but not as serious as the USA. China still has the Global South market to fall back on, an area that it can compete effectively.
Scott Bessant is still trying to be spout nonsense by saying that it is 'up to China to de-escalate'. Who started the tariff war? Not China, and it is not in China's responsibility to de-escalate. Bessant can keep dreaming.
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