China and the United States compete for TSMC Don't take it lightly with capital acquisition, there is only one right way to go
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Preface. In the context of the current scientific and technological competition between China and the United States, the right to speak in chip manufacturing technology has become fundamental. As the world's leading chip manufacturer, TSMC has fierce competition between China and the United States. From the perspective of the Sino-US competition for TSMC, this article analyzes the complexity of the situation and the strategies and outcomes of all parties.
China and the United States compete for TSMC 1Chinese mainland: Capital acquisition plan.
Chinese mainland is competing for TSMC with a capital acquisition strategy, trying to gain control of technology through capital. Zhao Weiguo, as the helmsman of Tsinghua Unigroup, tries to make the chip industry bigger and stronger through capital operation. However, he ended up in debt, and the acquisition didn't work out well. China** itself did not intervene, believing that Taiwanese enterprises essentially belong to China and do not need external capital to intervene.
Expansion: In the process of competing for TSMC, Chinese mainland uses capital mergers and acquisitions as the main means to try to control integrated circuit technology through capital. Zhao Weiguo led Unigroup to carry out large-scale capital operations, intending to build a huge chip empire, but ultimately failed to achieve the expected goal. China** is relatively conservative and believes that Taiwanese companies belong to China, so it has not taken action. This strategy was ultimately unsuccessful.
2) United States: Coercion and Incentive Strategy.
The United States lured TSMC to move to the United States with high subsidies and threats. The United States has taken advantage of the emotional gap between Taiwan and the mainland to warn that TSMC is in danger and encourage it to move to the United States. Biden** pledged to provide development subsidies to ensure TSMC's stable development in the United States. However, the U.S. demand for trade secrets from TSMC, coupled with political instability and demands for more investment, meant that the deal ultimately did not materialize. Liu Deyin's resignation marks TSMC's failure in the United States.
Amplification: The U.S. uses high subsidies and psychological threats to make TSMC choose to enter the U.S. market. The United States has taken advantage of Taiwan's emotional entanglement with Chinese mainland to convey to TSMC all the dangers it may face in Taiwan, threatening that security can only be obtained in the United States. In order to attract TSMC, Biden** promised to provide development subsidies to reduce TSMC's production costs. However, with the change of various conditions and requirements, as well as the uncertainty of the political situation in the United States, TSMC's attempt in the United States ultimately failed, and Liu Deyin resigned.
TSMC's dilemma 1Leakage of trade secrets.
U.S. demands for TSMC's trade secrets have put it in a bind. As a technology-based company, trade secrets must be strictly protected, but this has become one of the challenges for TSMC under U.S. law.
2.The impact of political instability.
The political instability in the United States has also exacerbated TSMC's situation. With the change of ** and the change of political situation, the initial commitment may be affected, and the company is exposed to more uncertainty and risk.
3.Development subsidy challenges.
TSMC expects to receive a development grant from the United States** to support its development plans in the United States. However, due to many variables and prerequisites, it is difficult to cash in the grant, which increases the pressure and operational difficulties of TSMC.
Amplification: In its relationship with the United States, TSMC is at risk of a trade secret leak, which could be a disaster for a tech company with key technologies. In addition, the unstable political environment in the United States has also put TSMC in a difficult situation, and if there is a change, previous commitments and policies may be reevaluated, which brings more uncertainty to the company. At the same time, TSMC is expected to receive development subsidies to support its growth in the United States. However, due to the uncertainty of subsidies and changes in terms and conditions, it is difficult for TSMC to easily obtain the necessary support, which has also become a major challenge for the company.
Summary. In the process of Sino-US competition for TSMC, China failed to achieve its goal through capital acquisition strategies, while the United States used subsidies and threats to attract TSMC to the United States, which eventually led to frequent problems. This shows that relying solely on capital acquisition or external subsidies is not conducive to long-term control of basic technology, and only through independent and specific research and development can the long-term development of enterprises be ensured. It is hoped that China's chewing gum industry can accelerate the pace of independent research and development, and move towards independence and self-improvement.
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