How Trump is trying to kill the American chip manufacturing companies is obvious to any observer of American political scene. Nvidia, AMD, Qualcomm, TSMC are all targeted to be killed or taken over by BlackRock and the likes, using the Indian playbook in India. Intel, Motorola are saved for obvious reasons.
When the biggest chip manufacturers are forbidden to sell their most expensive chips, their most profitable chips to their biggest customers, what did these say? The simplistic excuse, national security, cannot hold for long. The big chip manufacturers need to sell their products to generate revenue to feed their shareholders, investors and employees. Stopping them from selling their most expensive chips to their biggest customers is cutting off their revenue. If this did not end in losses, it will still end in loser profit or even having to downsize production. The growth of these companies is being strangled. They cannot find replacement for a big client like China, with deep pockets and high demands for their chips. Didn't clown Trump know that? Didn't clown Trump know that it will kill these companies?
After all the begging by Jensen Huang, Trump relented a little, can sell some high end chips to China, but he wants a cut, 15% of the sales revenue. Trump is as good as telling China, I am using Nvidia to rip China off, to pay more to fill Trump's pocket. Trump is betting on China being so desperate, and having to pay Trump obscenely for chips that should cost must less...using a Chinaman to fleece another Chinaman. Ya, when two fish are fighting, there is a white man standing around to profit from it.
Trump thinks the Chinese are stupid and will allow themselves to be robbed by him and unable to say no. Of course Trump has nothing to lose. Only Nvidia, and the likes of AMD and TSMC will stand to lose, China also will lose the opportunity to buy high end chips. Trump has everything to win, to benefit from all parties. If these companies eventually start to lose revenue, to make losses, their share value will fall, and Trump can send in his team to buy over for a song.
It is so elementary to make quick and easy profits from Chinaman, pitching one Chinaman against another Chinaman. So neat and so clever. So Trump and his clowns think so and waiting to get paid for nothing and at the same time destroying Nvidia, AMD and TSMC. White men's rule of law, white men write the rules for Chinaman and others to follow. NOT anymore!
3 comments:
Elon Musk is building data centers in space using SpaceX and Starlink. He has taken the AI war into space. Just like the West talking about mining for rare earth under the sea. Big balloons being blown, but will it work.
How are data centers in space going to work just using energy from solar panels that needs frequent maintenance, not on the ground as on earth but in space? How big are those solar energy panels going to be, floating around in space? Maybe a nuclear power station needs to be built up there. Why not just build such a nuclear power plant to cater to the data center on earth to save all the trouble. There is no shortage of land in the USA.
The USA will keep harping on China taking back Taiwan by force, and eventually TSMC may take the bait and move its most important chip production facilities to USA. That will be mission accomplished by Trump.
Now, let us look at the situation for Taiwan if TSMC most important asset leaves Taiwan. Will the USA then be interested in Taiwan's future going forward? Continue to protect its pineapple industry? I would bet that Taiwan will be thrown under the bus, with the narrative that Taiwan belongs to China anyway. The USA is only interested in TSMC, not Taiwan per se, just as its interest in the Middle East is the oil.
The USA has no love lost for the Arabs or the Muslims. If so, the Arabs in Palestine would be accorded the same love (fake love I would say) as the Saudis, Emiratis, Qataris and Omanis. There is no oil in Palestine, save only touting about potentials. The love of the rest of the other Gulf states stems from their oil, nothing more. That is a lesson for the Gulf states. When their oil runs out, which it will, what is to come? The USA military bases will be uprooted for good. And if the Arabs now thinks that supporting the USA and Israel to attack Iran is of no consequence, they better do their sums. Among all the Arab states, UAE stands to lose everything - its infrastructures, its tourism industry, its safety paradise for the super-rich, all crumbling down like a house of cards. UAE is basically a house of cards built on hype, a hot intolerable house of cards built in the desert.
China is never going to play by USA rules anymore. Trump, Scott Bessent and Howard Lutnik can gloat all they want, the reality is not in what they are singing. China will play by its own rules from now onwards, even in the chip sector.
USA can no longer dictate to China over what it wants. It is the other way round. China has practically banned the chips from Nvidia, despite Trump giving Nvidia permission to sell to China. Now giving permission or not is all a moot point. It is all in the hands of the buyer, which is China, and China said no again to Nvidia.
Nvidia had been designing its H200 chips specifically for the Chinese market to comply with the restriction imposed by the USA. It is going to be another big loss for Nvidia, without China buying those chips like the earlier H20. China has been focusing on the backdoor spying issue in those Nvidia chips earlier. National Security Issues imposed by the USA can now work both ways, and China is just taking a leaf from the USA. What is sauce for the goose is sauce for the gander.
Thanks to the USA, Chinese technology was able to progress faster than usual, especially in the semi-conductor sector. What was to take China a decade to accomplish had now been a much closer gap to be on par. The USA can keep on the pretense that Chinese semi-conductor progress is still stuck in the stone age stage. Let them be.
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