Greg Abbott’s Post

From this picture, the strategic relevance of Taiwan is crystal clear.

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and SK Group discussed the ongoing challenges in the semiconductor and battery industries at a press conference held to commemorate his re-election as chairman of the chamber for another 3-year term. Despite the recovery in the memory semiconductor market, Chairman Choi cautioned against complacency, emphasizing the need for strategic capital expenditure (CAPEX) decisions to sustain growth in the industry. Chairman Choi highlighted the volatility of the semiconductor market, noting the importance of continuous investment to meet the demand for miniaturization processes. He expressed concerns about the industry's over reliance on CAPEX and the need for Korea to address this issue in the long term to remain competitive. Regarding the battery market, Chairman Choi expressed optimism about long-term recovery potential, despite recent challenges stemming from environmental and governance issues. He acknowledged the temporary demand stagnation in electric vehicles but remained positive about the market's resilience in the long run. Furthermore, Chairman Choi emphasized the importance of international cooperation and dialogue in addressing economic challenges. He underscored the need for rational relationships based on mutual benefit, highlighting upcoming high-level economic dialogues between South Korea and China as a step towards fostering economic cooperation. As Chairman Choi continues to lead the SK Group and the Federation of Korean Industries, he aims to combat 'anti-business sentiment' and create an environment conducive to economic growth and entrepreneurship. Through strategic initiatives and dialogue, Chairman Choi seeks to navigate the economic landscape effectively, fostering innovation and sustainable growth in the industry. (Source: Yonhap, Korea Chamber of Commerce and Industry) #TechnologyTrends #IndustryInsights #EconomicOutlook #GlobalMarkets #InnovationLeadership

I see a lot of government officials fly to South Korea, Taiwan and Japan to meet semiconductor and battery manufacturers and promote them to invest in building their next facilities in the US and Canada. One thing that worries me is if the effort is made to only enhance the security of North America in the global order, but not the partnership between the two. I think both North America and the East Asia should look at this issue from the partnership point of view because I can see a lot of frictions arise in the near future. Reducing the dependency on the East Asia is good for North America. However, how it is being handled will be eventually remembered because, in the end, the less dependency may lead to both sides’ interest no longer being aligned. The true partnership in my opinion occurs when both sides work towards winning together. However, there has been a lot of misinformation and generalization about the East Asia. When the executive members move to North America, and start building the production facilities, their kids and families will all come together to support the effort. I doubt there is much of foundation that can make the families feel comfortable as of now. The same families will be exposed to the issues that you have not been aware and may not want to know. Up until the early 21st century, it worked. The families moved. The parents did whatever they could to support their families. We probably don’t want to see the families that come with the companies go through such difficulties any more. The investment and the transfer of the facilities may enhance the security of North America, but it could actually damage North America’s partnership with South Korea, Japan and Taiwan. There should be more effort and system to make the transitions seamless. Otherwise, the increased friction can make it actually difficult for both sides to shake hands next time.

The relationship between Taiwan and China is a critical factor in the global semiconductor industry. While economic interdependence has increased, political and military tensions pose a risk to the stability of the global chip supply chain. The situation necessitates a careful balancing act from global stakeholders, including governments and corporations, to mitigate risks while leveraging Taiwan's technological strengths. As the global economy becomes increasingly digitized, the importance of stable and secure semiconductor supply chains will only grow, making the Taiwan-China relationship a key area to watch in international relations and global economics. https://lnkd.in/ehvMYj4t

I write in today’s Deccan Herald: “The US-China tech war dynamic is reshaping the landscape of global power struggles and establishing the framework for the world order in the coming decades….” #chipwar #greatpowerpolitics #tech https://lnkd.in/dmJ8ztYz

My recent report examines the domestic policies implemented by the Biden administration over two years to strengthen the semiconductor supply chain. It then explores collaborative actions with allies and partners via multilateral cooperation. Through an evaluation of US-led 'friend-shoring' initiatives and a review of the opportunities and challenges within these cooperative ventures, the report highlights voids that South Korea can fill to improve the global semiconductor supply chain while boosting its own industry capabilities:

My dear friend Frank Bösenberg just shared an update about government cooperation in the Semiconductor sector in the past 2-3 years. Jan-Peter Kleinhans & Julia Hess dive deep into the cooperation documents, MoUs, speeches, contracts, etc., of different governments to see which factors are forcing Governments to cooperate or what are the priorities. Summary is: 📣 most government partnerships do not even mention semiconductor workforce development 🙄 (Still good news for Taiwan & Asians 😆 ) 📣 📣 The European Commission seems to focus on research cooperation, crisis preparedness, and transparency about subsidies 🤓 (finally they realize) 📣 📣 📣 . For the US, one key motivating factor for cooperation on the semiconductor value chain is geographic diversification away from China 🤠 (Every policy of the USA is around China 😬 ) Personal Note: 🔍 From the list, it looks like the USA is successful in keeping China alone in the semiconductor field. No notable cooperation with China from any country Check the full article on following link. https://lnkd.in/gvGhpFAK #Ammar #MogulTech #semiconductors

🌏 Following the establishment of TSMC’s Kumamoto fabs, the Taiwanese government is reportedly eyeing on establishing a new semiconductor park in Japan! 🔥 Notably, the plan to establish semiconductor parks is said to be primarily following TSMC. That is to say, this plan could extend to the US and Germany, relocating 10-15% of the supply chain capacity! 💡 Delve into the details of Taiwan's Ministry of Economic Affairs' semiconductor park plans here: https://buff.ly/4e6xQxJ 🔗 #Taiwan #US #Japan #Germany #Semiconductor

January 8, 2020America First, truly a national ego!It clearly shows that your country is your top priority and you think nothing of the progress of mankind as a whole!Is he thinking of bringing the semiconductor manufacturing industry back to the U.S. in the future?Where will you get the engineers for this?Do you think that Chinese or Chinese-affiliated hands will not be needed?I understand that the U.S. strategy is to spread the seeds of conflict around the world in order to support the U.S. arms industry, but have you forgotten that the U.S. has been leading the semiconductor industry, which has benefited the U.S. the most, and the IT industry, which has been supported by it, and has made a living in the advanced industrial fields created on its frontiers? Have you forgotten that the U.S. has been a leader in the semiconductor industry, supported by the IT industry, and beyond.You don't seem to understand at all...The cutting-edge industries in the U.S. are supposed to be the biggest beneficiaries! With this mindset of Mr. Trump, there is a possibility that he will lose the global strategy of "economic war" with China, which is very clever...I don't think he understands the fact that the world's industries are already dependent on each other in terms of technology and human resources to fulfill their mutual roles.We have to think about how to prevent China from taking away the current U.S. role in the world.That division of labor can only be maintained if we are directly involved in China's production sites and society...what are your thoughts on that? Well, what do you think? https://lnkd.in/gPszhjqG

The in10 blog features the first in a series of articles focused on the relationship between Taiwan and China and its impact on the global microchip supply chain.