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United States

US Says It's Working With Taiwan To Secure Chip Supply Chain (bloomberg.com) 55

The U.S and Taiwan are working together to secure supply chains, Washington's envoy to Taipei said, as global chip manufacturers face a looming deadline to meet the Biden administration's request for company data. From a report: U.S. officials have met leaders of local semiconductor firms, Sandra Oudkirk, director of the American Institute in Taiwan, told reporters Friday in Taipei, adding that they had "excellent safeguards" to protect proprietary information. "The Commerce Department's request for information is designed to better understand the semiconductor supply chain," Oudkirk, who is the U.S.'s de facto ambassador in the absence of official ties, said at her first news conference since being appointed in July. She added that the drive was designed to enable the department make regulations to "improve or alleviate the disruptions to the supply chain." Those strains are due to a twofold by a surge in demand for goods and labor issues, both caused by the global pandemic. The U.S. Commerce Department's September call for companies to hand over information related to the ongoing chip shortage has faced resistance in Taiwan and South Korea due to concerns over possible leaks of trade secrets.
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US Says It's Working With Taiwan To Secure Chip Supply Chain

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  • Why do they keep calling this a supply side issue. CNN already stepped us through this, it's a demand side issue /s

    https://youtu.be/hhnvilqpMIs [youtu.be]

    • Because it is both. There is high demand but there are also supply issues. For example if a chip fab wants to buy a new EUV machine today to increase production, that would $120M and there is only one supplier. Also the waiting list might be 2 years.
  • by JoeyRox ( 2711699 )
    America is providing "protection" for Taiwan against China, at the same time we're asking them for preferential access to their chip manufacturing capacity. Completely unrelated I'm sure.
    • Thanks! Obama.

    • Seems like a pretty good deal though. America's somewhat-vague not-at-all-binding promise is the only thing keeping Taiwan safe from invasion. How long it will last is a concern though - the American approach for many years (and many administrations) has been to hedge bets and avoid making serious commitments, and that might not be sustainable.

      • by Tailhook ( 98486 )

        How long it will last

        It will last for as long as it takes China to build out its H-6N fleet of hypersonic anti-ship missile launchers that will keep the US Navy at bay; the US won't risk a nuclear powered and armed carrier getting blown in half. That's when the Chinese blockade of Taiwan starts. Taipei folds soon after.

        the American approach

        That's been SOP for every great power for as long as there have been great powers. Nothing particularly 'murkin about it.

        • You really don't understand America.

          We have always been willing to risk ships against dictatorships.

          We're quite famous for it, actually.

          Meanwhile, we will get chip supply if we have to invade Mexico to supply it, along with our national burrito supply and national salsa supply.

          • by Tailhook ( 98486 )

            You really don't understand America.

            I think I do. The US hasn't faced an aggressive super power armed with effective weapons in nearly two generations. Today's America is governed by people that employ bag men to fill their foundation bank accounts with PLA money.

            They don't want a fight. They'll knuckle under.

        • If China tries to blockade with ships they will be shot to shit by missiles and torpedoes, don't even need hypersonics. Point defences aren't that good, missiles are so much cheaper than a ship that the asymmetry means the ship loses. Autonomous mine layer, torpedo platforms and long range anti-ship missiles can do a blockade ... but the carriers are irrelevant to that equation.

          Manned stealth aircraft and aircraft carriers are just trillion dollar mirages used to fight enemies with 1970s USSR technology. Ve

          • by Tailhook ( 98486 )

            If China tries to blockade with ships they will be shot to shit by missiles and torpedoes, don't even need hypersonics.

            This is all true. Where you go wrong is in thinking Chinese loses will matter. They won't matter. Taiwan is so close that China doesn't need warships that are much beyond littoral and losing them won't be significant. Meanwhile, the US will have to risk national assets. Carriers, destroyers and submarines that are named after presidents and states. And as we know from the Falklands, and as you point out about point defenses, some of these assets will be lost. China is building weapons for precisely t

          • And whoever attacks those ships will face retaliation. At the very least and open war with China would be costs in the trillions, and at worst it's WW3 and the nukes come out. Will the US risk that just to defend one small island, even if an economically and politically important one? America has no legally binding agreement, only deliberately ambiguous promises. China might call their bluff.

        • Yadda, yadda, yadda. Somehow you think the rest of the planet suddenly disappeared. Taiwan's importance far outweighs it's land mass. Let alone the South China Sea's importance to it's neighbors. China needs to worry more about at-home problems than it's pride being hurt because that fundamentally is what the issue is, and had been for several decades.

          • by Tailhook ( 98486 )

            Somehow you think the rest of the planet suddenly disappeared.

            No part of the rest of the planet has anything like the will or the means to oppose China. At worst they'll say something mildly critical, and then resume collecting their PLA money.

      • This could actually be a bad thing: Taiwan gives the US all the info it needs to do the stuff that's currently being done in Taiwan in the US instead, and now the US doesn't have to do much more than make tut-tutting noises if the PRC decides to reclaim Taiwan because, apart from the plant, they've got everything else they need from them.
    • [sarcasm]Yes because China has been nothing but friendly to Taiwan in the last several decades. I mean it has only been 20 days [usnews.com] since China has threatened Taiwan and the US over rumors that the US had military personnel in Taiwan. I am sure rebuilding the Taiwan semiconductor business will be easy if something were to happen.
    • by skam240 ( 789197 )

      Yes, finally our plan to support Taiwan for over half a century in order to get leverage on a shortage of goods that barely existed when we started has now come to fruition.

      Somehow I don't think the cold war would have lasted as long if we were that good at planning.

    • by NFN_NLN ( 633283 )

      .... And?

      You'd prefer China invades a sovereign nation AND the US has no chips?

      That would only make sense if you're pro-China and anti-USA... and I forgot I was on slashdot, nevermind.

  • they will use them in advanced naval platforms running Windows for Warships.

  • by guygo ( 894298 )

    ah the joys of globalization

  • US companies can work with blacklisted Chinese companies as long as they provide a clean-looking front in Taiwan.

  • There were growing problems with semiconductor supply and discrete components before anyone heard of COVID-19. At the bottom of all of this is simply consolidation of manufacturing through globalization.

  • by oldgraybeard ( 2939809 ) on Friday October 29, 2021 @01:16PM (#61939515)
    seems short sighted. If the CCP takes over the problems will just multiply. I would expect the CCP to take the long view and not invade but their military is pushing for war, asap. And with the weak Biden administration and the dysfunctional leadership in the pentagon(keeping their CCP overloads informed) the war won't last long.
    The leadership(or lack of) across the top of government today is like the a Key Stone cops cartoon. It will take time to replace failed leadership and re build. The question is will our military and public opinion be able to weather the storm and provide that time.
    In the 1864 presidential election General McClellan(D) was running on a platform of peace now, let the Confederacy keep slavery. Basically, agree to anything to end the civil war because of the high cost in lives. Lincoln(R) won, so the war was pushed to an end thus ending the era of slavery in the US.
    Today, I am not sure any US guarantee of any kind is worth the paper it is written on.
  • The free market does not work well in a massive supply crunch, it just creates lots of hoarding and parasitism and in the current geopolitical environment easy and plausibly deniable avenues for economic warfare. Government needs insight into the supply chain so they can ration if absolutely necessary and to expose strategic hoarding by enemies.

    Is China centrally planning parasitic hoarding to harm western economies? Of course they are, why wouldn't they? The West and China are strategic enemies which do to

  • by endus ( 698588 ) on Friday October 29, 2021 @02:03PM (#61939663)

    Just heard a story yesterday about how the Chinese government is rather irritated that we have soldiers training in Taiwan and that we've stepped up sales of military equipment to them.

    Well, the numbers are certainly adding up now!

    As long as we don't bring any of this manufacturing on shore. I mean, sure, this ratchets up tensions with China even further but at least we're not providing jobs to Americans!

    • >Well, the numbers are certainly adding up now!

      Indeed they do! Silicon is the new oil, and this is the new Carter Doctrine.

      As long as we don't bring any of this manufacturing on shore.

      But, we are [reuters.com]. Again, very similar to the Carter strategy of fight for oil in the near term and develop domestic production as the long term solution.

  • by presidenteloco ( 659168 ) on Friday October 29, 2021 @02:27PM (#61939729)
    Is it just me, or is anyone else contemplating that a single deliberate or errant missile in a China assault on Taiwan, among the current sabre-rattling, would cripple the world economy for years by taking out the TSMC main factory?

    This seems like the definition of the worst possible single point of failure and potential bottleneck in the entire global economic supply chain.
  • I mean, if Nantucket Island can want one, why can't Taiwan?

    / Denny Crane
  • Come on man we did not have the willpower to take on a bunch of literal cave men. Now we are supposed to wake up to fight China? We are only friends with Taiwan on paper. I hate to say the truth, but sadly most people do not care about Taiwanese. Many (most?) humans only care about the suffering of another if they can relate to or feel connected to that person. How many people have friends from there? Any confrontation with China will quickly escalate to nukes, and that provides the perfect excuse to not in

  • "US Says It's Working With Taiwan To Secure Chip Supply Chain"

    Well, if the US hadn't armed Taiwan to the teeth, the Chinese would be less likely to bomb the shit out of it.

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