America will struggle to match Asia on chips

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The United States has “left the ball” on chip manufacturing to come forward to China and other Asian Hubs. At that time, Jina Raimondo, a US Commerce Secretary, said in an interview with me in the 5th.

Four years later, Chips Tech is a battlefield in the United States-China race, and US President Donald Trump now wants to turn a very complex and delicate production process that has taken other regions for perfection.

He says that his rates will free the US economy and bring jobs home, but it has also happened that some of the largest companies have long struggled due to lack of skilled workers and poor-quality products in their American factory.

So what will Trump do differently? And, in Taiwan and other parts of Asia have a secret sauce on creating high-quality chips, is it possible for the United States to make it too?

From semiconductor washing machines to iPhone and military jets are the centers to boost everything. The search for these small wafers of silicone, known as chips, was found in the United States, but today the most advanced chips are being made unprecedented.

Making them is expensive and technically complicated. For example, the iPhone can have chips designed in the United States, Taiwan, Japan or South Korea, using raw materials like rare earth, mainly in China, mainly in China. Next they can be sent to Vietnam for packaging, then sent to China for assembly and test before sending to the United States.

This is a deep integrated ecosystem, which has been developed in decades.

Trump has praised the chip industry but threatened by the rate. He has told the Taiwan SemiCandctor Manufacturing Company (TSMC) Industry Leader, if the US does not build a factories, it will have to pay 100% tax.

With such complex ecosystem and terrible competition, they must be able to plan for long -term costs and investment calls beyond Trump’s stewardship. Continuous changes in policies do not help. So far, some have agreed to invest in the United States.

Important grants to private companies developing chips by China, Taiwan, Japan and South Korea are a major reason for their success.

It was mainly the idea behind the Chips and Science Act of the United States, which became the law under the leadership of President Joe Biden in 2022 – trying to diversify the brave and supply chains again – by granting, tax credit and household production.

Some companies like TSMC, the world’s largest Chipmaker TSMC and the world’s largest smartphone manufacturer, have become the leading beneficiaries of the law, TSMC received $ 6.6 billion subsidy and loans for the plants in Arizona and Samsung received approximately $ billion for the facility of Texas’s teller.

TSMC announces an investment of $ 100 billion with Trump in the United States. China often threatened to control the island, China repeatedly working for TSMC.

But both TSMC and Samsung have faced challenges with their investments, including increased costs, difficulty in recruiting skilled workers, construction delays and resistance from local organizations.

Market Intelligence Firm Counterpoint Research Director Mark Einstein says, “This is not just a factory where you make a box.” “Chips making factories are such a high-tech sterile environment, it takes years and years to make them.”

And despite the US investment, TSMC has said that most of its production will remain in Taiwan, especially its most advanced computer chips.

Today, TSMC’s plants in Ariza produce high-quality chips. But Chip War’s author Chris Miller: The most serious technology of the Fight for the World argues that “he is a generation behind the latest edge of Taiwan”.

He says, “The question of how much investment is made against Taiwan in the United States depends on the question.” Today, Taiwan has more potential. “

The reality is that Taiwan took many decades to increase that capacity, and despite the risk of China’s risk of spending billions of spending billions in the industry, it is constantly increasing.

The TSMC was the founder of the “Foundry model” where the chip manufacturers took US designs and made chips for other companies.

While walking on the waves of Silicon Valley start-ups like Apple Pal, Qualcomm and Intel, TSMC was able to compete with the best engineers, highly skilled workers and knowledge sharing with TSMC America and Japanese giants.

“Can America make chips and create employment?” Shri Einstein asks. “Of course, but they are going to the nanometer down the chips? Maybe not.”

One of the reasons for Trump’s arrival policy is to live abroad, which can potentially limit the arrival of skilled talent in China and India.

“It is also a problem to come from abroad to live forever with Tesla engineers,” Shri. Einstein says, referring to Kasturi’s support for the H -1B Visa program in the United States.

“This is a problem. And they can do nothing until they completely change their opinion about immigration. You can do magic anywhere.”

Nevertheless, Trump has doubled the rates by ordering a national trade inspection in the semiconductor sector.

“This is a bandage in the machine – a big leaf,” says Mr. Einstein. “For example, Japan was revived by semiconductor, and the rate was not in the business plan.”

According to Mr. Miller, the long -term impact on the industry is likely to renew domestic production in many major economies in the world: China, Europe, the United States.

Some companies can find new markets. For example, the monster of Chinese technology Huawei, for example, expanded in Europe and emerging markets, including many countries in Thailand, UAE, Saudi Arabia, Malaysia and Africa, in the wake of export control and rates, although margins in developing countries are smaller.

“China will finally want to win-he will have to invest in research and development. See what he did with Deepsek,” Referring to China-Bilt AI Chatbot, says Mr Einstein.

“If they make good chips, everyone is going to go to them. The cost-effectiveness can now do it and look forward, this is a high-tech fabrication.”

In the meantime, new manufacturing hubs may occur. Experts say that there is more likely to be integrated in the Chip supply chain than the United States, according to experts, India has a lot of promise – this is geographically closer, the workers are cheap and education is good.

India has indicated that it is open for chip manufacturing, but land acquisition and water – chip production for factories include high quality water and many of its challenges.

Chip companies are not completely on mercy. From major American companies like Microsoft, Apple Pal and Cisco, the whole depending on the chips and the demand for the Chip area can pressure the Trump to revert to any charge on the chip area.

APPLE Palla Chief Executive Officer Tim Cook’s intense lobbying suit smartphones, laptops and electronic rates, and Trump has allegedly banned China by Trump, who could sell NVDia to China as a result of lobbying.

Asked about the Apple Pal products on Monday at the Oval Office, Trump said, “I am a very flexible person,” saying, “Maybe things will come there, I talk to Tim Cook, I recently helped Tim Cook.”

Mr Einstein believes that all of this is trying to contract down to Trump – in the case of chips when he and his administrators know that they could not build just a large building.

“I think the Trump administration is trying to do what is trying to do with the owner of the Tiktok. He is saying that I will not allow you to work in the United States until you do not partner with Oracle or other American company,” says Mr. Enstein.

“I think they are trying to keep an eye on the same thing here – the TSMC doesn’t go anywhere, let’s just force them to contract with Intel and force them to take a piece of pie.”

But there is a valuable lesson of the Blue Print of the Asia Semichander Ecosystem: No one can run the chip industry itself, and if you want to make advanced semiconductor, efficiently and proportion – it will take time.

Trump is trying to create chip industries through protection and isolation, when the chip industry can occur throughout Asia throughout Asia: collaboration with the economy of globalization.

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