China and the United States compete for TSMC, and the acquisition is not possible, there is only one choice
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The background and situation of the dispute between China and the United States around TSMC 1The focus of the Sino-US science and technology war: the right to speak in the production of integrated circuits; 2. TSMC: It is in a world leading position in the production of integrated circuits; 3. Chinese mainland's strategy: capital merger strategy; 4. Failure in Chinese mainland: The failure of Zhao Weiguo's merger and acquisition.
The competition between China and the United States in the field of technology ultimately determines the outcome of this war. TSMC, on the other hand, is at the center of the contention between China and the United States, as it is one of the world's leading semiconductor manufacturers. China** has adopted a strategy of "breaking the game with money", that is, "winning with money". Zhao Weiguo, who was the first to take measures, wanted to establish a large chip company including TSMC. However, Zhao Weiguo still owed a lot of debts in the end, and this merger and acquisition was also declared bankrupt. Chinese mainland's acquisition of TSMC failed because of its strategic mistake of believing that it would not work to obtain core technology by capital. Only down-to-earth research and development can obtain the real core technology. In fact, China** did not participate because they believed that the Taiwanese company itself was a Chinese enterprise, so there was no need for special interference.
The U.S. "Trap" and TSMC's Development History1. the lure of high subsidies in the United States; 2. The United States coerced TSMC; 3. TSMC worries and hesitation; 4. The current situation and dilemma of TSMC in the United States.
The United States has set a huge "trap" for TSMC and subsidized it a lot. The United States has used two methods in TSMC's decision: coercion and **. They told TSMC that if they continued to stay in Taiwan, there would be many hidden dangers, which could cause it to lose stable production capacity. TSMC decided to defect to the United States out of prudent considerations. In addition, the Biden administration promised that if TSMC can build a factory in the United States, it will receive an additional subsidy to ensure the safety of the factory and production costs. However, TSMC also has its own hidden concerns, especially the guarantee of core technology. TSMC's core competence is built on TSMC's core capabilities, and without this, it would have no meaning to exist. The U.S. understands this and has promised to subsidize TSMC rather than give it control of its core technology. This is undoubtedly a huge asset for TSMC. That's why TSMC will do this. However, TSMC has not developed well in this regard. TSMC's situation is even more worrying after Liu Deyin was ousted. According to U.S. regulations, TSMC is required to disclose its trade secrets to the U.S. Department of Commerce when exporting to the U.S. As a high-tech enterprise with core technology, it is undoubtedly a great risk to leak its trade secrets. In addition, after TSMC invests in the United States, whether there will be a new regime change in the United States is still an uncertain factor. Moreover, after Trump's return to the White House, it is doubtful whether the subsidies received by TSMC will continue to take effect. In addition, the United States has put pressure on TSMC to improve its high-tech capabilities and capital investment, and local authorities also want to share some of the profits with TSMC. A series of negative effects made TSMC difficult, Liu Deyin resigned, and the business was declared bankrupt.
The dispute between China and the United States: TSMC's defeat and its lessons1The Sino-US boycott of TSMC was unsuccessful; 2. The acquisition of funds cannot obtain key technologies; 3. Only solid research and development can obtain core technologies; 4. It is necessary to accelerate the research and development of integrated circuits in China.
In short, the competition between China and the United States around TSMC ended in failure. It is an incorrect strategy to use capital mergers and acquisitions to acquire core technologies. The only way to do this is to do research and development on the ground. Therefore, China must accelerate the development of its own chip research, strive to catch up with and surpass the world's advanced level, and become a country with cutting-edge technology. In addition, China should also provide more support and policy guarantees for high-tech companies, so that they can be in a favorable position in the international market.
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