Pompeo called on U.S. investors and semiconductor companies to invest in expanding the U.S. Silicon Shield.


[Compiled by Wei Guojin/Taipei Report] Former U.S. Secretary of State Pompeo and Strive Asset Management Executive Chairman Vivek Ramaswamy pointed out in the Wall Street Journal that Chinese President Xi Jinping is determined to be re-elected for a third term, and this will be the CCP’s invasion. An important milestone in Taiwan's process. Due to Taiwan's leading position in semiconductors, Taiwan's falling into the hands of China will cause major disasters to the interests of the United States, and American investors and semiconductor companies can protect themselves from Taiwan by investing in their own silicon shields associated risks.

The article titled "China's Threat to Taiwan Semiconductors" pointed out that the annexation of Taiwan is an important part of Xi Jinping's national rejuvenation program and national goals, and it is also a key thread of his personal life, and annexing Taiwan will consolidate his leadership. , to divert attention from domestic affairs, and Xi Jinping may not be willing to wait any longer, given the possibility of a more decisive president in Taiwan in May 2024, or Washington in January 2025, and Beijing's recent rhetoric is quite consistent with this assumption.

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The article said that Taiwan's important defense is its economic influence rather than its military, and Taiwan's dominant position in the semiconductor industry effectively protects against Chinese aggression.

Taiwan's TSMC produces more than 50% of the world's advanced semiconductors and more than 9% of the most advanced chips.

If China invades Taiwan, TSMC's light may be extinguished. TSMC Chairman Liu Deyin told CNN in July: "If there is force or invasion, it will make the TSMC factory inoperable."

The article pointed out that the fall of Taiwan would bring disaster to American interests.

If TSMC is unable to produce chips, the global economy will be in trouble, and if TSMC can still produce chips, but with Chinese regulations, companies that rely on TSMC and other Taiwanese semiconductor companies may be at the mercy of Beijing.

The US has experienced the pain of chip shortages.

Chip shortages will cost the auto industry $210 billion in lost revenue in 2021, and a recent estimate shows that a one-year disruption to semiconductor production in the Gulf will cost electronics makers $490 billion, not including those not directly dependent on semiconductors. impact on the industry.

The article said U.S. companies should now invest in semiconductor technology to meet demand that is expected to grow by 80 percent by 2030.

If China annexes Taiwan, U.S. manufacturers could seize this market opportunity to increase domestic production.

While the U.S. semiconductor industry is not as advanced as Taiwan's, increased investment could change that.

The article said that if the United States does not make this investment, once China annexes Taiwan, American semiconductor companies will face market pain.

The more prepared U.S. semiconductor companies are to fill the supply gap from China's annexation of Taiwan, the more China may be hesitant to execute its plans.

Xi Jinping's motives are not primarily economic. He is a rational leader who weighs the pros and cons before taking action.

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