Russia Sanctions: Taiwan's TSMC Joins Western Ban on Technology For Moscow

[RiazHaq]

Russia Sanctions: Taiwan's TSMC Joins Western Ban on Technology For Moscow

Taiwan Semiconductor Manufacturing Company (TSMC) will no longer fabricate computer chips for Russia, according to media reports. The ban ...

www.southasiainvestor.com

Taiwan Semiconductor Manufacturing Company (TSMC) will no longer fabricate computer chips for Russia, according to media reports. The ban will particularly affect Russia's Elbrus and Baikal processors, unless China agrees to step in to manufacture these chips, and risk additional US sanctions itself. Both Russian processors use mature 28 nm technology. The world's most advanced TSMC fabrication technology today is 5 nanometers. The best US-based Intel can do today is 7nm technology. China's SMIC (Semiconductor Manufacturing International Corporation) has the capability to produce chips using 14 nm technology. Semiconductor chips form the core of all modern systems from automobiles to smartphones, computers, home appliances, toys, telecommunications and advanced weapons systems.

Top 10 Semiconductor Chip Producing Countries. Source: Comtrade Database

China is the world's biggest producer of semiconductor chips, according to data from the United Nations. The electronics value chain, which includes consumer electronics and ICT, has been regionalized over the years, and China has become a major global production center for microelectronics, according to a report in Opportimes. Other major producers include South Korea, Singapore, Malaysia, the United States, Japan, Germany, the Philippines, the Netherlands, and Thailand. In particular, the statistics for China add up the production of Hong Kong and Macao.

While China is the biggest volume producer of semiconductor components in the world, the Chinese design centers and fabs rely on tools and equipment supplied by the West to deliver products. Western companies dominate all the key steps in this critical and highly complex industry, from chip design (led by U.S.-based Nvidia, Intel, Qualcomm and AMD and Britain’s ARM) to the fabrication of advanced chips (led by Intel, Taiwan’s TSMC and South Korea’s Samsung ) and the sophisticated machines that etch chip designs onto wafers (produced by Applied Materials and Lam Research in the U.S., the Netherlands’ ASML Holding and Japan’s Tokyo Electron ), according to the Wall Street Journal.

There is no question that the current western technology sanctions can seriously squeeze Russia. However, overusing such sanctions could backfire in the long run if the US rivals, particularly China and Russia, decide to invest billions of dollars to build their own capacity. This would seriously erode western technology domination and result in major market share losses for the US tech companies, particularly those in Silicon Valley.

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Russia Sanctions: Taiwan's TSMC Joins Western Ban on Technology For Moscow

Taiwan Semiconductor Manufacturing Company (TSMC) will no longer fabricate computer chips for Russia, according to media reports. The ban ...

www.southasiainvestor.com

 

[Mirzali Khan]

Do you think Russia has built a big enough war chest to sustain these sanctions?

 

[SuvarnaTeja]

Do you think Russia has built a big enough war chest to sustain these sanctions?

It is not the money but lack of technology that will hurt Russia and China.

US, Taiwan and South Korea dominate the Electronic Chip manufacturing.

 

[Skull and Bones]

Do you think Russia has built a big enough war chest to sustain these sanctions?

A large chunk of their foreign reserves were seized by US/EU countries.

 

[RiazHaq]

TSMC says Nanjing wafer fab expansion plans on track as second quarter revenue surges 28 per cent

TSMC says Nanjing fab expansion on track as second quarter revenue surges

Global foundry leader TSMC is pushing ahead with its 28-nm expansion plans in Nanjing, brushing off speculation the project could be slowed by US-China rivalry.

www.scmp.com

Volume production of 28-nm wafers in Nanjing will begin in the second half of 2022, reaching 40,000 wafers per month by mid-2023, said TSMC
Apart from Nanjing, the Taiwan foundry said its new plant in Arizona is proceeding and it is also in talks to build a new fab in Japan

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract producer of advanced chips, said on Thursday it will press ahead with its 28-nanometre fab expansion in Nanjing, defying speculation that the project could be affected by US-China tech rivalry.
“We are further expanding our presence in Nanjing with 28-nm technology to support our customers’ urgent needs,” Mark Liu, chairman of TSMC, said during a conference call with analysts on Thursday. “The volume production will begin in the second half of 2022, reaching 40,000 wafers per month capacity by mid-2023.”
Liu said the 28-nm line will be “the sweet spot for our embedded memory applications” and he expects structural demand for 28-nm to be strong.

Do you think Russia has built a big enough war chest to sustain these sanctions?

US and its allies have frozen Russian forex reserves in their banks, leaving China as the only source of funds held in Chinese Yuan.

Pakistani-American Banker Heads SWIFT, The World's Biggest InterBank Payments System

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

 

[SuvarnaTeja]

TSMC says Nanjing wafer fab expansion plans on track as second quarter revenue surges 28 per cent

TSMC says Nanjing fab expansion on track as second quarter revenue surges

Global foundry leader TSMC is pushing ahead with its 28-nm expansion plans in Nanjing, brushing off speculation the project could be slowed by US-China rivalry.

www.scmp.com

Volume production of 28-nm wafers in Nanjing will begin in the second half of 2022, reaching 40,000 wafers per month by mid-2023, said TSMC
Apart from Nanjing, the Taiwan foundry said its new plant in Arizona is proceeding and it is also in talks to build a new fab in Japan

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract producer of advanced chips, said on Thursday it will press ahead with its 28-nanometre fab expansion in Nanjing, defying speculation that the project could be affected by US-China tech rivalry.
“We are further expanding our presence in Nanjing with 28-nm technology to support our customers’ urgent needs,” Mark Liu, chairman of TSMC, said during a conference call with analysts on Thursday. “The volume production will begin in the second half of 2022, reaching 40,000 wafers per month capacity by mid-2023.”
Liu said the 28-nm line will be “the sweet spot for our embedded memory applications” and he expects structural demand for 28-nm to be strong.



US and its allies have frozen Russian forex reserves in their banks, leaving China as the only source of funds held in Chinese Yuan.

Pakistani-American Banker Heads SWIFT, The World's Biggest InterBank Payments System

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

The trick is for China to take control of Taiwan without the TMSC factories getting destroyed by the US.

US is already moving Electronic Chip plants from Taiwan to Arizona in US as they know that when the war starts US will destroy all those factories in Taiwan to prevent them falling into the Chinese hands.

 

[RiazHaq]

#Chinese Foreign Ministry: ‘#Pakistan, #China concerned over sanctions on Russia’. Both share concern about “spill-over effects of unilateral sanctions” on #Russia over its war against #Ukraine, called for a ceasefire & diplomatic resolution of the crisis. https://www.thenews.com.pk/print/943818-pakistan-china-concerned-over-sanctions-on-russia

Old allies China and Pakistan have refrained from condemning Russia over its Feb 24 attack on Ukraine, unlike Western countries that have imposed unprecedented financial and corporate sanctions in response to what Russian President Vladimir Putin calls a “special military operation”, a British wire service reported.

“Both expressed concerns about the spill-over effects of unilateral sanctions,” the Chinese foreign ministry said in a statement following a meeting on Monday in Pakistan between the neighbours’ foreign ministers. “Both called for a ceasefire through diplomatic dialogue and hope that based on the principle of indivisible security, a fundamental solution to the Ukraine problem can be found,” the Chinese ministry said.

 

[Hamartia Antidote]

[However, overusing such sanctions could backfire in the long run if the US rivals, particularly China and Russia, decide to invest billions of dollars to build their own capacity. This would seriously erode western technology domination and result in major market share losses for the US tech companies, particularly those in Silicon Valley.

How can it backfire in the long run when China's goal has always been to control all parts of production.