Apple Supplier TSMC wants Globalism back so that they could once again sell Chips to Huawei and more
Earlier today the chairman of Taiwan Semiconductor Manufacturing (TSMC) said that the deleveraging of China-U.S. supply chains and protectionism on both sides of the Pacific will only drive up costs and limit the flow of ideas, according to a Reuters report.
At present, President Trump is attempting to turn back the clock when factories were strong in America and every day working people were able to easily find a job. Over the last few decades, U.S. politicians and businessmen supporting globalism sold American out plain and simple, starting with the disastrous NAFTA agreement.
Some companies, like TSMC, don't like this new trend of America wanting to rebuild their supply chains in America and they're starting to be very vocal on the matter in the hopes of a Joe Biden win in November.
A Joe Biden win would quickly allow companies like TSMC to go back to selling their chips to Huawei and not have to build a U.S. plant. TSMC has committed to building a $12 billion factory in Arizona. We see now that TSMC isn't really happy about that.
No foreign mass producer of products is happy about the rise of America again. Yesterday The Korean Times reported on one of Trump's recent political rallies where he noted that Samsung, LG were building plants in US thanks to tariffs on imports established by his administration. The report was to illustrate that jobs were being lost in Korea because of Trump's pro-America stance.
Even in light of China holding military exercises with planes flying in Taiwan air space as a clear threat and provocation, TSMC is only interested in things going back to "normal" where globalism reigns.
Today a new Reuters report states that "TSMC has become caught up in the China-U.S. tension, saying in July it had stopped taking new orders from Huawei in May and did not plan to ship wafers after Sept. 15, responding to U.S. curbs on supplying the Chinese company."
Speaking at a semiconductor conference in Taipei, TSMC chairman Mark Liu said over the last four decades the industry had benefited from the free global flow of information.
"But in the future the climate may change. The information flow may not be that free. Tariffs may be erected. So we have to prepare for that," said Liu, whose company is the world’s biggest contract chipmaker.
Lui added that "One thing is the competition will be stronger. Secondly, the cost of production or development will be higher because one cannot leverage the whole world like in the past."
The Trump administration has limited supplies to Chinese tech firms like Huawei Technologies Co Ltd, viewing them as a security threat, and is encouraging U.S. factories in China to move home, part of a broader China-U.S. trade war. For more, read the full Reuters report.
Beyond TSMC voicing their strong discontent for having to adhere to the ban on selling processors to Huawei and other Chinese companies, TSMC is blazing forward with the best processor technology on the planet.
On Monday Patently Apple posted a report titled "TSMC has revealed that it has made a Major Breakthrough in the Development of a new 2nm Architecture for 2024 Processors." Such advances will allow Apple to advance their key iPhone and iPad products. More importantly in some ways, TSMC's advances will assist Apple's shift to 'Apple Silicon' that will power a new generation of Macs. Apple's success on that front will likely drive more business TSMC's way from other tech companies having to compete with Apple.