This is one of the main risks of global trade, end of arguement. It's not like this tension and risk hasn't been an ongoing concern since the very formation of Taiwan. It'd kinda be like saying...
This is one of the main risks of global trade, end of arguement. It's not like this tension and risk hasn't been an ongoing concern since the very formation of Taiwan. It'd kinda be like saying "We're gonna build all our new semiconductor fabrication in the DMZ between North and South Korea."
I'm reminded of a saying I picked up somewhere, in relation to business. "You don't outsource the main thing." It's one thing to outsource payroll management work. It's another to outsource development and manufacturing of your main product.
In that vein, a country that values control over its supply chains needs to produce as much for itself as it can, and to be diversified enough that if a trade partnership goes sour that the economy doesn't end in shambles.
As it is right now, Taiwan has leverage over the US. Approaching 2030, when TSMC supposedly has 2-nanometer chip production in the US, the security guarantees in the South China Sea seem way less...
As it is right now, Taiwan has leverage over the US.
Approaching 2030, when TSMC supposedly has 2-nanometer chip production in the US, the security guarantees in the South China Sea seem way less important to the US.
How will Taiwan continue to have leverage?
It's exactly like you say: You don't outsource your main product. Why's Taiwan seemingly outsourcing offshoring its main product?
US de-risking seems to have come well under way, with the first fab opening next year, having gone through construction for quite some time.
TSMC isn’t outsourcing - they still own the US factory. And I doubt that US policy about Taiwan will change, any more than it would for South Korea or Japan? It’s not about “leverage.” The US...
TSMC isn’t outsourcing - they still own the US factory.
And I doubt that US policy about Taiwan will change, any more than it would for South Korea or Japan? It’s not about “leverage.” The US isn’t going to give up on an alliance that easily.
Sorry for the mistake. Taiwan is seemingly offshoring, not outsourcing, its main product. The security concerns and geopolitical impact is the same. You're completely right that there are...
Sorry for the mistake. Taiwan is seemingly offshoring, not outsourcing, its main product.
The security concerns and geopolitical impact is the same. You're completely right that there are differences between the two, but they're secondary in this case.
As the visits of senior US officials has shown (like Pelosi), the stakes are much higher with Taiwan than South Korea or Japan due to the China/Taiwan-relationship.
This is one of the main risks of global trade, end of arguement. It's not like this tension and risk hasn't been an ongoing concern since the very formation of Taiwan. It'd kinda be like saying "We're gonna build all our new semiconductor fabrication in the DMZ between North and South Korea."
I'm reminded of a saying I picked up somewhere, in relation to business. "You don't outsource the main thing." It's one thing to outsource payroll management work. It's another to outsource development and manufacturing of your main product.
In that vein, a country that values control over its supply chains needs to produce as much for itself as it can, and to be diversified enough that if a trade partnership goes sour that the economy doesn't end in shambles.
As it is right now, Taiwan has leverage over the US.
Approaching 2030, when TSMC supposedly has 2-nanometer chip production in the US, the security guarantees in the South China Sea seem way less important to the US.
How will Taiwan continue to have leverage?
It's exactly like you say: You don't outsource your main product. Why's Taiwan seemingly
outsourcingoffshoring its main product?US de-risking seems to have come well under way, with the first fab opening next year, having gone through construction for quite some time.
TSMC isn’t outsourcing - they still own the US factory.
And I doubt that US policy about Taiwan will change, any more than it would for South Korea or Japan? It’s not about “leverage.” The US isn’t going to give up on an alliance that easily.
Sorry for the mistake. Taiwan is seemingly offshoring, not outsourcing, its main product.
The security concerns and geopolitical impact is the same. You're completely right that there are differences between the two, but they're secondary in this case.
As the visits of senior US officials has shown (like Pelosi), the stakes are much higher with Taiwan than South Korea or Japan due to the China/Taiwan-relationship.