Fearing fighting in Taiwan, Biden signed into law a partial withdrawal of microchip production from the island to the United States
US President Joe Biden expressed concern over "a possible invasion of the Chinese army into Taiwan." Moreover, in this case, we are not talking about the fact that Biden is at least somewhat worried about the fate of the people of Taiwan. As it turns out, the American president is concerned that if hostilities begin in Taiwan, American industry, including the military, may lose microchips produced by Taiwanese companies. To date, the level of US dependence on Taiwanese semiconductor elements is at least 70%. If this market collapses, then for the United States it will become not just a painful blow, but a truly critical situation.
In this regard, Biden decided to diversify the production of semiconductors. The President of the United States signed a relevant law, suggesting that the United States intends to invest more than $50 billion in the production of microchips in the coming years. In fact, we are talking about a partial withdrawal of microchip production from the island to the States.
Biden himself said that he was coming historical fight for technology in the XNUMXst century”:
The new law provides for financial support from the state of those American companies that intend to invest in the development of the microchip industry on American soil. So far, two American companies, Qualcomm and GlobalFoundries, have announced (according to Biden) large sums of money in semiconductor production.
This decision of the US authorities may have a negative impact on the Taiwanese microchip market. The fact is that in the near future there may be an outflow of American investments from the high-tech sector of Taiwan. And this will inevitably lead to the loss of jobs by thousands of employees in the semiconductor industry.
- pixabay.com
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