Apple supplier Pegatron has denied media reports claiming shipments to and from its factories in China were being held for scrutiny by Chinese customs officials, following a Pegatron executive’s meeting with U.S. House Speaker Nancy Pelosi (via DigiTimes).
Pegatron is the second largest Taiwanese contract electronics manufacturer and iPhone assembler behind Foxconn, while TSMC is the sole supplier of Apple’s custom silicon chips and the world’s most valuable semiconductor company. All three firms operate plants in China.
Update: Nikkei reports that Apple on Friday asked suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations, which state that Taiwanese-made parts and components must be labeled as being made either in “Taiwan, China” or “Chinese Taipei,” language that indicates the island is part of China.Apple Supplier Pegatron Denies Reports of China Blocking Shipments
The Taiwan Semiconductor Manufacturing Company (TSMC) is set to rapidly grow its market share by the end of this year according to a fresh report from Korea. TSMC is the world’s largest contract chip manufacturer, as it is responsible for supplying semiconductors to most of the world’s largest technology firms. This list includes the Cupertino, California consumer electronics giant Apple, Inc along with chip designer Advanced Micro Devices, Inc (AMD). Additionally, TSMC is also in partnerships with Intel Corporation and Qualcomm Incorporated, both crucial players in the modern day semiconductor industry.
Now, it appears as if the Taiwanese company might soon be responsible for supplying NVIDIA Corporation with all of the latter’s graphics processing units (GPUs). NVIDIA already has a partnership with TSMC for some of its products, but purported problems at the company’s other chip supplier, the Korean firm Samsung Foundry, will force it to switch sides completely to TSMC according to Business Korea.
The complete switch to TSMC, if true, is ironic since NVIDIA had originally intended to retain some power over suppliers by diversifying as much as it could. TSMC and Samsung are the only two companies in the world that manufacture and sell chips built through advanced technologies (below 7nm) to other firms. NVIDIA is rumored to have agreed to pay as much as $10 billion to TSMC for jumping to the 4nm ship, and the company is also reportedly in talks with Intel Corporation for the latter’s Intel Foundry Services (IFS) plans that will mark Intel’s entry as another player in the contract chip manufacturing industry.
Heard someone say that NVIDIA doesn’t rely so much on TSMC, anymore, but it turns out not to be true. Maybe they meant that they didn’t rely on Samsung, anymore?! On another note, looks like Pelosi dumped some Apple stock before she bought and sold Nvidia.
The company’s Arizona facility would begin mass production in the first quarter of 2024, according to TSMC Chairman Mark Liu’s announcement from the previous year.
The chips made in Arizona are likely purchased by Nvidia, Qualcomm, and Apple. The new Arizona facility should theoretically enable Apple to produce its 5nm bespoke silicon chips for the first time in the country.
The Arizona facility will be the business’s second production location in the United States. Although TSMC’s primary factories are in Taiwan, the company also has a factory centre in Washington, a design centre in Austin, Texas, and two design centres in San Jose, California. For more updates, follow TechGenies.
Third, the CHIPS Act actually has provisions designed specifically to restrict investments in China. These so-called “guardrails” require that companies taking federal dollars for American projects must also agree not to invest in state-of-the-art technology in China—not just with the federal dollars, with any dollars. Good-faith critics have raised fair concerns that these guardrails should be broader, tougher, and firmer. But any guardrails at all represent unprecedented restrictions on what U.S. companies can do in the People’s Republic. It’s one thing to say an ideal bill would hurt China even more; it’s quite another to try and claim that less-than-perfect restrictions count as “help.”
The House speaker’s trip came after Congress passed a bill that includes $52 billion to subsidize domestic chip manufacturingPelosi Meets With Taiwan’s Top Chip Industry Leaders
Hopefully, the TSMC-Arizona deal doesn’t go the way of Foxconn-Wisconsin!
February 26, 2022 (Brian Berletic – NEO)
Tensions between the United States and China exist across a wide spectrum of areas, from economics to geopolitics. Among the many flashpoint issues defining this growing confrontation is the “Taiwan question.”US Plans to Destroy Taiwan to “Save” It
The only means for halting the drive to war between the two nuclear-armed powers is the intervention of the international working class through the building of a unified anti-war movement directed at abolishing the capitalist system—the root cause of geo-strategic conflict.
Good luck with that!