(8) Semi-conductor - iHandbook
(8)   Semi-conductor

(8) Semi-conductor

Why the new allies of EU would include Japan? It is not one of the 5 Eyes and has no direct relationship with the west. However, since the Meiji Restoration, Japanese said they are Europeans in Asia. Both UK and Japan are of island economy, both their traffic are keeping left, while the rest of the world are keeping right. For the inauguration ceremony of Prime Minister of Japan, they have to put on Swallow Tail Suite of British style, but British Prime Minister and US President just normal business suite.

But for the current era, the most important thing is semiconductor. EU is weak in chips, apparently under China. They only have ASML to produce the machine for chips. TSMC also has one plant in Dresden of Germany and that’s all. TSMC has factories in Arizona, but not so successful, for worker union has greater power in US than in Asia. They cannot chase up the main factory in Taiwan on a 24-hour service. Therefore, TSMC established a plant in Kumamoto of Japan. This city is famous for the castle of Sakura Festival, but in the future will be famous for chips. Basically, Asian are much more hard working than American and Europeans.

King Donald said TSMC has stolen the business of chips from America, but he had not explained what is meant by stolen, for it is just a trade surplus of Taiwan and trade deficit of US. The US is so keen when Chinese students study in their universities and they said their Intellectual Property had been stolen. Now they forced TSMC to purchase Intel and establish plants in US which is a transfer of Intellectual Property from Taiwan to US. How to describe this transfer of Intellectual Property? The amount is up to 100 Billion US dollar, the largest single foreign investment to US. Is this “Stolen” or “forced transfer” or “protection fee” or a threat if they don’t follow will face 100% tariff?

Anyway, the investment of chips no matter from Taiwan or Japan is necessary to Europe or else they cannot chase up the world.

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