Why is Trump's chip strategy doomed to fail?
Foreign media: Trump's chip strategy will ultimately end in failure.
Semiconductors are the core driving modern life, whether it is a washing machine, an iPhone, military aircraft or electric vehicles. These semiconductors, known as "chips", were initially invented in the United States, but now the most advanced chips in the world are being produced on a massive scale in Asia.
The cost of manufacturing chips is expensive and the technology is extremely complex. Take the iPhone as an example; the chip design may originate from the U.S., but production takes place in places like Taiwan, Japan, or South Korea. The raw materials needed for these chips, such as rare earth elements, are mostly mined in China. Afterwards, the chips might be sent to Vietnam for packaging, then to China for assembly and testing, and finally shipped to the U.S.
This is a highly integrated industrial ecosystem that has developed over decades.
During Trump's administration, TSMC announced that, in addition to the three factories and $65 billion investment already committed, they would further invest $100 billion to expand production in the U.S.
However, both TSMC and Samsung face numerous challenges with these investments, including rising costs, difficulty in recruiting skilled labor, project delays, and opposition from local unions.
Market intelligence company Counterpoint research director Mark Einstein said, "Chip factories are not ordinary factories, it's not just about putting things into boxes. These chip factories require extremely high technology and sterile production environments, and building them alone can take several years."
"Can the U.S. manufacture its own chips and create jobs?" Einstein asked, "Of course it can, but can they shrink chips down to the nanometer level? That's going to be difficult."
One reason is that Trump's immigration policies may restrict technical talent from China and India entering the U.S. "This is the bottleneck of the industry, unless they completely change their stance on immigration, nothing can be done. You can't just conjure up a bunch of PhD holders out of thin air."
However, the development blueprint of the Asian semiconductor industry has proven one thing: no single country can independently operate the entire chip industry. And if you want to efficiently and on a large scale produce advanced semiconductors, this will require time.
Trump is trying to build America's chip industry through protectionism and isolationist policies, but in reality, the rise of Asia's chip industry is due to cooperation under the global economy.
Source: BBC



Original article: https://www.toutiao.com/article/1829700422299658/
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