Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest and most technologically advanced dedicated semiconductor foundry, with about half of the global market for contract chip manufacture.

TSMC produces semiconductor devices designed by AMD, Apple, Broadcom, Nvidia, Qualcomm, Xilinx, Texas Instruments and other American companies; by Japanese semiconductor makers Renesas and Sony; and by European companies NXP and ARM (owned by Japan’s Softbank).

Under pressure from the US government, TSMC stopped taking orders in mid-May from Hi-Silicon, the integrated circuit design arm of Huawei. In 2019, Hi-Silicon had accounted for 14% of TSMC’s revenues.

Most of TSMC’s business comes from America. TSMC has now agreed to build a factory in Arizona to help bring the semiconductor industry back to America, even though it’s not an economically sound proposition.

However, considering that TSMC’s founder, the legendary Morris Chang, spent 25 years at Texas Instruments, this is not as surprising as it might seem. In 2019, the seven American companies accounted for close to 55% of TSMC’s revenue.

We can imagine what might happen if Taiwan were absorbed by the People’s Republic of China, if Communist Party “observers” were added to TSMC’s top management and if a Party committee were implanted within its organization.

TSMC’s customers’ design secrets could be compromised and, depending on the political situation, their production schedules might not be met.

Dissatisfied customers could go elsewhere, but that would not be easy and would take time, other semiconductor foundries being much smaller and having a narrower range of capabilities.

Samsung’s foundry business, the industry’s second-largest, is less than 40% the size of TSMC’s; third-ranking Global Foundries’, an American company, is less than 20%. Fourth-ranking UMC is also Taiwanese and fifth-ranking SMIC is Chinese.

The USA currently accounts for only about 13% of global capacity and less than 10% of investment in new capacity.

In contrast, the Semiconductor Industry Association calculates that American companies accounted for 47% of global semiconductor sales in 2019.

In 2017, Micron sued Taiwanese foundry UMC and its Chinese client Fujian Jinhua Integrated Circuit for infringement of its DRAM patents, alleging unauthorized transfer of its intellectual property to Fujian Jinhua.

The 2016 founding of government-owned Fujian Jinhua was part of China’s campaign to develop its own memory chips and reduce dependence on imports.

In 2018, the US Department of Commerce banned exports of equipment and technology to Fujian Jinhua and the Department of Justice indicted both UMC and Fujian Jinhua for industrial espionage. That crippled Fujian Jinhua’s DRAM project, which was shut down in 2019.

Meanwhile, in 2018, UMC countersued in China, where a court ruled that Micron had infringed on UMC’s patents.

And earlier this year, China’s first DRAM chips – made by ChangXin Memory Technologies, which was founded the same year as Fujian Jinhua – appeared in storage devices sold in China.

Imagine an exponential increase in this sort of thing, but with the Taiwanese courts on China’s side. That would be the end of the US semiconductor business.

Earlier, an Austin, Texas based semiconductor company, with four Chinese stakeholders and Jacob Rothschild resulted in the vanishing of Malaysian Flight 370.

All four Chinese businessman were on that flight and now JR has become the sole owner of that company. No surprise here, this is how Zionists kept running the entire world for centuries.

Asia Times / ABC Flash Point Technology News 2020.

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Shaka Zulu
Shaka Zulu
Guest
22-07-20 18:18

Another one bites the dust?