Chinese semiconductor industry
- Thread starter Hendrik_2000
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There is very little that Taiwan can do.
Travelers need not directly travel to China. There are a large number of transit hubs, such as Hong Kong, Thailand, Korea etc.....
As long as the money is there, workers will leave, it's just a matter of financial threshold. 50% more, I might think about it, 300% more and I'll be on the plane tomorrow. It is the same way Halliburton and Blackwater attracted employees between 2004 and 2012.
Ironically, the more Taiwan restrict, the more they become tyrannical, and more likely to induce curiosity and tech transfers.
Apple's supply chain serves to whip suppliers into shape.
If a supplier is certified and use by Apple at one point or another, they are essentially "made".
So, yes, Apple exact a large margin/profit from Chinese suppliers, but the suppliers will also become elite pros in their respective industry through optimization and iterative improvements.
This is the fundamental dividends (the manufacturing prowess and expertise) for the Chinese as part of the global supply chain, it was never the thin margins.
I agree 1000%. Smartness isn't genetic, but far more about resources, parentage, exposure, focus, guidance.
I graduated from top 10 US university... environment contributes more than genetics. It's why Indian brahmins can competed at highest levels because of vast privileges, resources, and focus they have as a caste, even though genetically indistinguishable from other Indian castes. Or how Jewish religion is revolve about critical thinking and learning. Not that Jews have genetic superiority, but their culture and religion embraces learning and nerd status.
Kinda hollow if you think about it. A third nation could act as intermediary for exchange ( like Singapore or Vietnam). This seems politically motivated rather than to gain meaningful results.
Taiwan, anyway, is building its empire on borrowed technology and resources. The biggest threat to TSMC will be Intel and Samsung.
Actually the biggest threat to TSMC is Japan, EU and US.
TSMC 's business model relies on specialization/outsourcing, focusing exclusively on the foundries and manufacturing. The reason other companies got out of this segment is because of the level of cyclical capital investment and commitment necessary to stay on top of the industry.
With all the risks that recent US sanctions have initiated, EU, Japan and US are now all looking to replicate TSMC in their own turf. This will whittle away the focused specialization business model TSMC has built up in Taiwan. Over time, these spin outs may or may not come to threaten the profitability of the mothership in Taiwan.
Further, add to this the impending challenge from China in a few years....
This is how I think things looks for TSMC:
There's nothing to stop a Chinese mainland recruiter to visit Taiwan and have a private chat with whoever wants to discuss employment alternatives.
Hotels provide excellent neutral ground. I presume Taipei has a few hotels that could be used.
The only alternative is to lock all key employees in a cage and prohibit anyone to visit them, not even their spouses. Otherwise.... Stupid, actually.
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AssassinsMace
Lieutenant General
Yes I'm sure the US is pushing the ban after they always talk about China violating Chinese citizen's right of freedom of travel. Pre-pandemic 100 million Mainland Chinese travelled overseas and yet not one of them asked for asylum or else the Western media would be reporting it. Also the ones that travel tend to be rich so there goes their lie that rich Chinese want to leave and live in a Western country.
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