This one might last longer. The AI race is on, and the US tries its best to make it as expensive for China as possible to participate in it. Every dollar China spends on GPUs they get at markup is one not spent on building navy ships.
If there is an escalation over Taiwan, then that will cause the loss of most of the world's high grade chip manufacturing capacity. TSMC is busy doing technology transfers into the US, but it is going to take time, those fabs won't have capacity for the whole world, and they still heavily depend on Taiwan based engineers if something goes wrong etc.
Just like with COVID you don't know how long this shortage will last.
It will incredibly hard for China to conquer Taiwan. One hundred kilometers across the straits introduces a brutal geographic hurdle. If anything, the fabs will probably be severely damaged in the war. Plus most senior execs and elite engineers would be moved to US offices in Arizona.
We are going to have that now in a couple of months regardless. So it won't matter if Taiwan's manufacturing base gets disrupted, the hardware will have already effectively stopped.
Wow, I wasn't aware Samsung, Intel, SMSC were unable to produce "modern technology." Not everything needs to be on a 3nm TSMC process, believe it or not.
TSMC makes a lot of stuff besides the EUV-scale parts that all the YouTube videos talk about.
Almost everything you own that runs on electricity has some parts from Taiwan in it. TSMC alone makes MEMS components, CMOS image sensors, NVRAM, and mixed-signal/RF/analog parts to name a few.
Also, people seem to assume that TSMC is an autonomous entity that receives sand at one loading dock and ships wafers out at another. That's not how fabs work. Their processes depend on a continuous supply of exotic materials and proprietary maintenance support from other countries, many of them US-aligned. There is no need to booby-trap any equipment at TSMC; it will grind to an unrecoverable halt soon after the first Chinese soldier fires a rifle or launches a missile.
Hopefully Xi understands that. But some say it's a personal beef/legacy thing with him, and that he doesn't even care about TSMC.
Russia weren't able to take Ukraine even when they were able to just drive their tanks right up to Kiyv. Modern warfare tech just favors the defender too much. China has ninety km of sea to cross before they even get to Taiwan. Missiles and drones have already taken out the Russian naval fleet in the Black Sea. China will be losing a lot in the same way if they ever attempt the crossing.
If there is an escalation over Taiwan, then that will cause the loss of most of the world's high grade chip manufacturing capacity. TSMC is busy doing technology transfers into the US, but it is going to take time, those fabs won't have capacity for the whole world, and they still heavily depend on Taiwan based engineers if something goes wrong etc.
Just like with COVID you don't know how long this shortage will last.