China and the United States compete for TSMC capital investment is not timely, what is the only feasible way?
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China and the U.S. are vying for TSMC – who will take the lead in chip manufacturing?
In the technology war between China and the United States, chip manufacturing technology has become the focus of discussion. TSMC, as the world's leading chip manufacturer, is in contention. However, the methods adopted by China and the United States in the battle for TSMC are different. Chinese mainland has always adopted a capital acquisition strategy, and its protective attitude towards TSMC can be used"Be careful"to describe. However, the capital acquisition strategy did not bring success, can China win this chip war?
Chinese mainland tried to compete for TSMC, but ultimately opted for a capital acquisition. For Chinese mainland, if it wants to consolidate its reunification with Taiwan, military strength is naturally crucial. However, for Chinese mainland, the most precious thing is the people and industry of Taiwan. Once the reunification of Taiwan by force is used, these precious resources are likely to suffer huge losses. Therefore, in the battle for TSMC, Chinese mainland has been adopting a strategy of capital acquisition. After all, if you can solve problems with money, try to avoid the use of force. The first to strike was Zhao Weiguo, the founder of Unisplendour Group. He tried to expand and develop his chip manufacturing industry through capital operation. However, his acquisition ultimately failed and he accumulated huge debts. Although he has acquired numerous integrated circuit manufacturing companies, TSMC is only one of them. Zhao Weiguo used TSMC as a springboard, mainly because of its cutting-edge technology. However, his strategy was wrong from the start. It is impossible to try to buy core technology through capital, and only through solid research and development can we obtain real core technology. In fact, China** has not taken direct action because they believe that Taiwanese companies are essentially Chinese and there is no need for official intervention. As a result, China failed to acquire TSMC.
In contrast, the United States has adopted a more advanced strategy. It takes advantage of a huge subsidy** TSMC. Initially, the United States threatened TSMC that the United States would be able to guarantee its security only if it left Taiwan. The U.S. told TSMC that if it remained in Taiwan, it would face a myriad of capital**, and even if it did not relocate, its security and stable production would be threatened. Under the threat and ** of the United States, TSMC began to waver. Subsequently, Biden** pledged to provide TSMC with development subsidies to improve its position in the United States. These subsidies ensure production safety and reduce costs, which is extremely attractive to TSMC. However, TSMC also has its own concerns, especially when it comes to trade secret protection. U.S. law requires companies to provide trade secrets to the Department of Commerce, which is very dangerous for a tech-based company with critical technologies. In addition, it is also unknown whether TSMC will continue to receive subsidies after the change of the United States. The U.S. has asked TSMC to increase its advanced production capacity of 5nm and 3nm and asked it to invest more. In addition, due to the political instability in the United States, the local ** has been asking TSMC to share part of the profits and strive for its benefits. This has caused a lot of trouble for TSMC. As a result, TSMC is currently in an undesirable position in the United States. Liu Deyin's resignation also means that TSMC's situation in the United States is not optimistic.
In short, China and the United States ultimately lost the war for TSMC. It is not feasible to acquire basic technology through the acquisition of capital, and the real basic technology must be obtained through independent research and development. It is hoped that China's tablet research and development will be on the right track as soon as possible.
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