Several Taiwanese technology companies are helping Huawei Technologies Co. build infrastructure for an under-the-radar network of chip plants across southern China, an unusual collaboration that risks inflaming sentiment on a democratic island grappling with Beijing’s growing belligerence.
Taiwan is counting on maintaining a key role in the United States’ high-tech economy. One where, if the island of Taiwan were to fall under the control of the mainland, American economic interests would be severely damaged. The existence of semiconductor factories in America doesn’t affect this calculus too much as long as a critical mass of manufacturing stays in Taiwan. In fact, tying Taiwan’s economy to the United States is beneficial because it means the pain of separating it will be greater, and hopefully the fear of such pain will make the Americans want to protect them.
Exactly my point. The interest of Taiwan Province is to have the critical mass of such manufacturing stay in the RoC, whereas the interest of the US is to have the critical mass of such manufacturing move to the US. Given these divergent strategic interests, it is the best interest of the RoC to sell chips to the US instead of allowing the US to make its own chips. The US doesn’t have a supply alternative to TSMC yet, so exporting RoC tech and factories to the US is weakening the RoC position and creating their own competitor (assuming the US doesn’t fuck up its own factories).
Exactly my point. The interest of Taiwan Province is to have the critical mass of such manufacturing stay in the RoC, whereas the interest of the US is to have the critical mass of such manufacturing move to the US. Given these divergent strategic interests, it is the best interest of the RoC to sell chips to the US instead of allowing the US to make its own chips. The US doesn’t have a supply alternative to TSMC yet, so exporting RoC tech and factories to the US is weakening the RoC position and creating their own competitor (assuming the US doesn’t fuck up its own factories).