US Fears Losing TSMC – What Happens if China Takes Over?

US Fears Losing TSMC – What Happens if China Takes Over?

No More iPhone? Are you ready for the era where you might have to survive without winning upcoming Apple products? Whereas, the debate is all about TSMC. TSMC is a powerful and influential company that significantly supports and contributes to the US economy. This is why the US Fears Losing it. Moreover, the US fears “What if China Takes Over TSMC?”. Because both of the countries are equally eyeing this goldmine opportunity.  

US Fears Losing TSMC

TSMC is the leading global chip manufacturing company. Whereas the entire world has a limited number of semiconductor companies. That actually vows for authentic and high-quality chips. This is the reason that US Fears Losing TSMC. Whereas, as per the reports, the United States of America buys over 90% of the chips every year through Taiwan Semiconductor Manufacturing Company.

US Fears Losing TSMC - If China Takes Over TSMC
US Fears Losing TSMC – If China Takes Over TSMC

Facts – US’s Reliance on TSMC – No More iPhones?

No More iPhone is not a new debate, but if the US lost its supply, then it might be a new nightmare for the company and the iOS users. Here are a few of the significant facts regarding the US’s Reliance on TSMC.

  • In future, TSMC has promised to receive over 6.6 Billion USD in subsidies
  • Every year US imports over 92% of TSMC chips from Taiwan
  • By the end of this decade,Taiwan might invest in Arizona. Initially, they decided to invest around 40 Billion USD, but now they have increased to 65 Billion USD.

What Happens if China Takes Over TSMC?

On a recent media appearance, the US commerce secretary raised surprising concerns regarding TSMC in future. She didn’t hesitate or get confused while confessing that if China Takes Over TSMC, then the US would be facing potential negative consequences. And they absolutely don’t want this deal to be closed with China.

Gina Raimondo further mentioned that it won’t only affect the American economy. Moreover, it will shock the nation, as the majority of Americans are using iOS products. Not having an upgrade can be disturbing in terms of data exchange, business, losing important documents and many more. The interesting part is that 2 years back, approximately in 2022, the US government already acknowledged the chip risk. They understood that the US’s Reliance on TSMC could make them lose hefty amounts. This is why, for security, they successfully passed the CHIPS Act.

Facts - US's Reliance on TSMC – No More iPhones?
Facts – US’s Reliance on TSMC – No More iPhones?

In the CHIPS Act, they decided to spend billions of dollars to initiate semiconductor manufacturing in the United States. However, this law tempted other tech companies such as Intel, TSMC, and Samsung to expand their manufacturing operations in America. Obviously, this is due to high demand and business worth billions of dollars.

Taiwan vs. China – The Threats of Conflict

Now, What If China Takes Over TSMC? Well, the response is there is already strong conflict going on between Taiwan and China. They aren’t on good terms for a significant period of time. The situation is so serious that recently, Taiwan’s Military confirmed that they are fully prepared for defensive activities against China. If the Chinese take any potential action for the sake of TSMC.

US Fears Losing TSMC – Expected Future of Semiconductor Industry

No doubt, even after investing billions of dollars in domestic high-end chip manufacturing, the US still Fears Losing TSMC. This shows the significant power of Taiwan’s company and the global potential in the area of Semiconductor manufacturing. Whereas the United States is still actively working to reduce the US’s Reliance on TSMC and is expected to reshape its capabilities very soon.

Wrapping up – “If China Takes Over TSMC”

The US vs. China shows the critical importance of “Semiconductors” in this era. We can’t deny the fact that the majority of the US economy depends on technological products. And losing its manufacturing resources is the biggest nightmare of the States. So, let’s see who wins the dominance or will Taiwan continue to hold the majority share?

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