Move Could Sink Biden’s Semiconductor Scheme
“So now I’m hearing that TSMC," the Taiwan-based semiconductor giant, “is now having a rethink about doing their fab or semiconductor foundry that they were thinking about opening in Arizona. Also, there's another story about Intel. They were going to open up this major chip manufacturing plant in Ohio, and now suddenly they're saying, 'Well, maybe we won't open up this factory in Ohio because we lost all our Chinese customers. And because of these export controls we don't have the ability to create all these chips,'” Pauken said.
US Caught Unprepared
“I think the real story is that the West maybe thought China was bluffing. Maybe they thought that China wasn’t being serious about these export controls. And now that they are starting to go into effect, they are realizing how destructive they can be. The fact of the matter is that the US has not done proper preparations to deal with the counter-sanctions or the counter-attacks led by China…They just thought that if they made all these announcements that they were going after China and all these other countries were following them, then somehow, China was going to wimp out, look scared, and then change their mind under the pressure. But in reality, what China has learned is that you cannot back down under peer pressure coming from Washington,” the observer said.
Options Limited
“Obviously, you can’t go through Russia,” he said, citing anti-Russian sanctions. “So then they would have to go through China. And obviously, if Europe and the US decide to continue putting pressure on China, then they’re going to make it more difficult for the Mongolian miners to transport their products to the shipping ports,” the observer summed up.