Wednesday, March 23, 2022

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 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 airplanes 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. 

Russia's Semiconductor Imports. Source: WSJ

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

East vs West Economic Output. Source: 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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19 comments:

Justin said...

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

Teja said...

Justin: "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.

Riaz Haq said...

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

https://www.scmp.com/tech/tech-trends/article/3141240/tsmc-says-nanjing-wafer-fab-expansion-plans-track-second-quarter

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.

Riaz Haq said...

Justin: "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 (about 13.8%) held in Chinese Yuan.

https://www.riazhaq.com/2022/03/pakistani-american-banker-heads-swift.html

Riaz Haq said...

#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.

Teja said...

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.

samir sardana said...

The Backfire has started

Putin has decided to sell GAS only in ROUBLES !

This is STEP 1 to the Yuan Float,and Reserve currency

The Putin game is that,importers will have to BUY Roubles !

That will APPRECIATE THE ROUBLE,to offset the recent crash !

Roubles can come only,by exports to Russia !

That will obviate the EXPORT BAN,ON RUSSIA !

Alternatively,foreign banks will borrow Roubles, from the Russian Central Bank (which will mint them), & lend it to the importers - buying from Russia.

Then Russia will import from the world,also in Roubles - thereby closing out the above debt.

Ultimately,one fine day,it will be swapped by the Chinese Yuan.BUT THAT WILL STRENGTHEN THE YUAN,AND COLLAPSE THE USD

SO BEFORE THAT,EMPEROR XI HAS TO START OFFLOADING USD DEBT - AND ONCE IT IS LIQUIDATED SUFFICIENTLY, PUTIN WILL SWITCH OUT TO THE YUAN.

IT IS NOT BEYOND THE REALM OF SPECULATION,FOR CHINA & RUSSIA TO MINT A NEW CURRENCY & FOR MANY OTHER NATIONS TO ACCEPT THIS NEW CURRENCY - PREDICATED ON THE CHINESE AND RUSSIAN GDP &MINERAL RESERVES.

EU SANCTIONS ARE COMING ON RUSSIAN OIL

EU sanctions on Russian Oil,are required by NATO - as else, the ilk of Indians,will keep buying Russian discounted oil

The Indians claim, that EU is buying and so,we also have a right - as we have been traditional buyers (like the EU) - and there is no replacement supplier.

In essence,the Indians are PROFITING from the war - as Indian Steel,Sugar ,Alumunimand Copper companies will mint profits, due to the ban on Russian Steel,Alumunium,Copper and Sugar and the fact that UKR steel mills have been blown up.

Like the Indian weasels use the EU as a cover - other nations will use India as cover to buy Russian Discounted oil.dindooohindoo

samir sardana said...

Zelinksy has to note the following :

- NATO DID NOT STEP INTO CRIMEA
- NATO DID NOT STEP INTO GEORGIA
- NATO WILL NOT STEP INTO UKRAINE

THAT IS Y UKRAINE AND GEORGIA ,ARE NOT PART OF EU !

THE EU AND NATO HAVE KEPT OUT THOSE NATIONS, WITH WHOM THE RUSSIANS HAVE SERIOUS ISSUES -
AS A MATTER OF STRATEGY - AS THEY DO NOT WANT A WAR,WITH THE RUSSIANS !

THEY WANT TO USE UKRAINE AND GEORGIA ,TO BAIT RUSSIA , AND THEN USE SANCTIONS, TO FINANCIALLY RUIN RUSSIA - AND STAGE A COUP OR REVOLUTION, IN RUSSIA !

EU WANTS TO USE TRADE AND FINANCE TO KILL RUSSIA - AS THAT IS MORE POWERFUL ,THAN NUKES !

As far as US/EU sanctions on Russia are concerned,Uncle Joe is using Russia,to send a message,to PRC

PRC will have to evaluate financial sanctions,and a naval blockade,in the Taiwan annexation.

EU cannot sanction PRC

EU will collapse

Even the Americans cannot survive Chinese sanctions

The Key will be a naval blockade of Chinese ports and shipping lanes and Malacca !

And that is Y the US is using UKR,to send a message to PRC-Russia,and especially to PRC, to see the plight of Russia,and the capacity of PRC to aid Russia,to bypass sanctions

It will make the PRC carefully plan an attack on Taiwan,or a Naval Blockade on Taiwan.

In the case of PRC,there is also the angle of a naval blockade on Chinese ports and Malacca (which is not possible for Russia).Once wars breaks out in SCS - there will be a defacto naval blockade - as no ship will sail in !

What is the US doing by sanctioning Russia ?

It will make the PRC-Russia-Persia-Africa axis,a permanent bloc

It will push PRC to buy oil in Yuan,and denominate oil trade in Yuan - and many nations will buy in - especially Africa and LATAM and even South America.UAE also might agree.

It will also push an alliance with Iran and massive investments in Iran by PRC for Oil - to secure Oil supplies

The entire supply chain of US manufacturing,and many US consumer items, are made in China.Then we have the rare earth exports,by PRC

What sanctions can US impose on PRC,and what will be the US/EU counter to a PRC retaliation

Lastly,it will create the impetus to roll out the CIPS - as many nations will have to make
a "long term and strategic choice".dindooohindoo

samir sardana said...

EU sanctions will not work now - unless EU sanctions Chinese and other companies,who are trading with PRC.

That is the NEXT LEVEL of the sanctions

That is the CRUX and the TEST.If Chinese companies are sanctioned - then Emperor Xi ,will take note !

As of today,the Russia sanctions are pushing up prices in the market and thus BUILDING THE CASE FOR CHINESE TO BUY FROM RUSSIA AS 60-70% OF MARKET RATES - AS A WAY TO REDUCE COSTS and also get an edge in the markets, as the competitors of Chinese companies,are buying the materials, at market rates.

There is no need for SWIFT or CIPS as PRC and Russia can do BARTER TRADES - as barter is the best way to bypass SWIFT and sanctions.

In fact,Russian companies can get equity swaps in Chinese rare earths and Chinese can take equity in Nickel,Coal,Steel and Oil and Gas in Russia

And then,Russia can choke the rare earth exports to US and EU - as a sanction response by Russia !

TAKE THE US BAN ON RUSSIAN OIL EXPORTS

What is the impact of this ban ?

It will push up NYMEX crude -unless Iranian crude flows (which will not as they are in the Russia/China camp)

WILL THE SAUDIS PUMP MORE ? IN LIGHT OF BIDEN VIEWS ON MBS AND THE KHASOGGI DISASTER !
What is the impact of this OIL SPIKE,on PRC ?

It will push PRC to buy Russian discounted Oil

Russia needs only the Marginal Cost of Oil to be paid cash down - which will be 15% -20% of Oil prices, and the rest the Chinese can pay on barter or CIPS mode.

So long as there is food,oil and gas for Russians and incomes - Putin is safe.So manufacturing should keep rolling and PRC should keep buying

If there is an equity swap between Russian and PRC companies to make Russian mineral and Oil - Chinese owned in part - then that will insulate Russia from all UN Sanctions and allow use of SWIFT and CIPS - legally - with no risk of EU sanctions ! dindooohindoo

If all the above goes as per Putin plan - he Will seal off NORD 1 - as once spring comes, EU might stop buying Russian Gas - in any case,and so Putin might give a SHOCK to EU.- to push UP LNG rates - and then,if some disaster happens in the Persian Gulf or Qatar .....

samir sardana said...

Some in NATO think that,with PRC bypassing Russian sanctions - some pressure will be applied on China !

What pressure can be applied on PRC and who will do it ?

One view is that PRC is a export driven economy,and thus,has a huge trade surplus, especially with the USA.

The thesis is that banning PRC exports,will collapse the Yuan and the Chinese economy.
COVID proved that there was no substitute, to the PRC supply chain

If the US sanctions PRC exports,who is the Alt supplier ? No other nation can replace,the Chinese supply chain.If the US were to "make in the USA",it will take time,and will cost many times more.Will the Americans pay this tax - to save UKR ?

Besides, until the US sets up the supply chain of PRC in the USA,the downstream users of PRC exports - will just shut down - with the cascade impact on the banks,and the DOW.
TRUTH is that NO ONE CAN APPLY ANY ECONOMIC PRESSURE, on PRC

Also,economic turmoil in PRC ,due to export sanctions - will not cause a Coup in China - it might push China to war - as a diversion.

Hence,no sanctions on PRC will work.

US SANCTIONS ON RUSSIA = STRATEGIC PARTNERSHIP BETWEEN PRC AND RUSSIA

It is a straight swap between PRC and Russia

China moves its commercial ships to Russian ports,and loads up on agri and metals (Alumunium/Copper etc.),and in lieu,gets to import sanctioned materials from PRC

Also,it will be start of Gold/Yuan denominated trade and banking

IT IS A METAL LEASE TRANSACTION - WHEREIN THE OUTPUT IS STOCKED IN CHINA AND RUSSIA IS PAID A LEASE FOR THE USE OF THE METAL - paid in Gold or Yuan

Alumunium and Copper rates are spiking,and PRC saves billions in import costs.PRC cannot export the Russian Alumunium (as it can be traced by metallurgy and trade data),but it can be converted into end product and exported (as China trade data on end products is opaque)

WHEN METAL AND OIL IS AT PEAK - WHAT WILL PUTIN DO ?

MAXIMISE PRODUCTION - AND SHIP IT TO PRC !

THE SIMPLEST WAY TO MAKE THE NORTH AFRICANS AND THE GCC TO CHANGE THEIR VOTE IS ITO - SELL THEM "WHEAT"

VLAD AND XI ARE PLAYING PING PONG !dindooohindoo

samir sardana said...

What can India learn from the Russian gambit in Ukraine ?

India's friend Russia !

Indians have to see the plight of the Russian army in UKR !

Indians uses Russian Tech.Pakistan uses US tech and PLA and PLAF is notches higher than Russia !

The dreams of the Indians to liberate Balochistan &AJK should END now. The pansy fantasies of Indian Generals w.r.t 2 front wars - should END.

Russia does NOT impose end user clauses on the Indians on defense purchases - as they sell Indians - JUNK ! PAF and PLAF face NO THREAT from Indian MIGs and Sukhois (as Putin has already sold them the antodote !). Similarly,Putin sold S-400 to PLA BEFORE he sold it to India.PLA has ALREADY GAMED THE S-400.

The JF series stealth fighters of PLAF,were IDEATED from Russian technology - and are NOT ONLY SUPERIOR to Russian jets - BUT ARE AN UNKNOWN MONSTER,TO NATO AND THE INDIANS !

Chaiwala went BEGGING TO PUTIN in Galwan - and he will need Putin''s help again.

Indians are a slave race.Those who think the Indians will oppose Putin are drinking cow piss cola with vodka = poison.

The Russian success in UKR is due to missiles launched from Russia - and not mobile launchers in UKR.THEY HAVE A 50% SUCCESS RATE.PUTIN MIGHT BE USING CHEAP AND LOW COST COSY MISSILES - BUT THE INDIAN WEASELS HAVE TO KEEP THAT IN MIND - WHILE WAR GAMING - 50% STRIEK RATE

The best missile tech is with Putin,and NOT shared with India.Putin knows the Indian MOD leaks and reeks of corruption.India was sold for a bottle of scotch - so long as the Indian in the PMO,could drink a peg,with a whiteman

https://www.nytimes.com/1985/04/16/world/19-are-charged-in-indian-espionage-scandal.html

That whiteman was a Pole.dindooohindoo

samir sardana said...

There is another angle of the UKR war missed out by media

WATER !

1st thing Putin did when he went in was to blow up the dam,which stopped the water flow to CRIMEA ! Russia spent millions of USD to ferry water to Crimea by land,as UKR had blocked the water after the takeover of CRIMEA - although the rivers flowing into UKR are European rivers - NOT origined in UKR

What did UKR do ? They opened the gates of 3 dams near Kiev to STOP Russian armor.They should have waited for the armor to come near - AND THEN FLOODED THE REGION - that way they would have POW and armor

What is the moral of the story for Pakistan

These are the dams in Kashmir

Baglihar Dam
Dulhasti Dam
Kishenganga Dam
Nimoo Bazgo Dam
Niu Karewa Storage Yusmarg Dam
Pakal Dul Dam
Salal
Sewa St II Dam
Uri-II Dam

There are a million Indian troops in Kashmir ! If a war breaks out and the dams are taken out - that will bury the Indian troops,armor and airforce for many years.All military logistics by land and air will be cut off for years.

The war will be over and Kashmir will be free of all Indians

There will be flooding in Pakistan also,but in time, the water flow will be damed or diverted.

AND THAT IS THE STRATEGY BEHIND PAKISTAN ALLOWING INDIA TO MAKE DAMS IN KASHMIR.

SO THE TIMING IS KEY - TAKE OUT THE DAMS IN THE PERIOD OF SNOW MELT OR OTHERWISE.

AND SO IS DAM SELECTION - TO FLOOD ONLY IOK AND REDUCE THE FLOW OF WATER AS IT ENTERS AJK - WHERE IT WILL COLLECT IN VALLEYS AND TROUGHS

INDIANS ARE EXPERTS AT BURYING THEMSELVES AND PAKISTAN SHOULD OBLIGE.dindooohindoo

Riaz Haq said...

Economic Weapons of Mass Destruction

https://www.project-syndicate.org/commentary/economic-wmds-and-the-risk-of-deglobalization-by-raghuram-rajan-2022-03

By RAGHURAM G. RAJAN


Because Russia's war against Ukraine could not go unpunished, the use of painful, sweeping economic sanctions is clearly justified. In the future, though, these powerful new tools will need to be subject to proper controls; otherwise, they could trigger a reversal of globalization – and of the prosperity that it has made possible.

CHICAGO – War is horrific, no matter how it is waged. Nevertheless, Russia’s unprovoked attack on Ukraine, with its scenes of Ukrainian civilians being murdered or driven from their homes, undoubtedly had to be opposed. In addition to supplying Ukraine with military weapons, governments around the world have deployed economic weapons against Russia. While Russia, an economic midget relative to its military power, may still lash out by expanding the range of military weapons it uses and the territories it targets, it is a risk the world had to take.

Compared to Russia’s indiscriminate bombing, economic weapons will not kill people as quickly, create as much visible destruction, or inspire as much fear. Nonetheless, the unprecedented economic weapons that have been deployed against Russia will be unquestionably painful.

The strictures on Russia’s central bank have already contributed to the ruble’s collapse, and new limitations on cross-border payments and financing have had an immediate impact, weakening confidence in Russian banks. Though trade sanctions (restricting exports of key inputs such as airplane parts to Russia, as well as purchases from Russia) and the exodus of multinational corporations from Russia will have a less immediate effect, they will reduce economic growth and increase unemployment significantly over time. If these measures are not reversed, they will eventually translate into lower living standards, poorer health, and more deaths in Russia.

That we have come to this point reflects a widespread political breakdown. Too many powerful countries are now being led by authoritarian rulers whose reliance on nationalism makes them less willing to compromise internationally and who face few domestic constraints on their behavior. If Russian President Vladimir Putin’s aggression were to go unpunished, more international provocations like his war in Ukraine would become inevitable.



https://youtu.be/yFCpMOCVdAw


Equally problematic is the breakdown of the international order. The United Nations Security Council cannot legitimately act against any of its permanent veto-wielding members (China, France, Russia, the United Kingdom, and the United States). The organization’s impotence translates into impunity for strongmen who flout international norms. Moreover, even if the UN could approve a military response, the will to confront a determined nuclear power militarily would probably be lacking.

Economic weapons, made possible by global integration, offer a way to bypass a paralyzed global governance system. They allow other powers an effective (that is, painful) but civilized way to respond to aggression and barbarity.



But the risks that these weapons can create must not be underplayed. When fully unleashed, sanctions, too, are weapons of mass destruction. They may not topple buildings or collapse bridges, but they destroy firms, financial institutions, livelihoods, and even lives. Like military WMDs, they inflict pain indiscriminately, striking both the culpable and the innocent. And if they are used too widely, they could reverse the process of globalization that has allowed the modern world to prosper.


Riaz Haq said...

In 2020, #Russia was the world's 11th-largest #economy, according to the World Bank. But by the end of this year (2022), it (#Russian #GDP) may rank no higher than No. 15, based on the end-February rouble exchange rate. #UkraineUnderAttack #Sanctions https://www.reuters.com/world/europe/four-weeks-war-scar-russias-economy-2022-03-24/

Russia's invasion of Ukraine on Feb. 24 sparked sweeping sanctions that ripped the country out of the global financial fabric and sent its economy reeling.

A month on, Russia's currency has lost a large part of its value and its bonds and stocks have been ejected from indexes. Its people are experiencing economic pain that is likely to last for years to come.

Below are five charts showing how the past month has changed Russia's economy and its global standing:


In 2020, Russia was the world's 11th-largest economy, according to the World Bank. But by the end of this year, it may rank no higher than No. 15, based on the end-February rouble exchange rate, according to Jim O'Neill, the former Goldman Sachs economist who coined the BRIC acronym to describe the four big emerging economies Brazil, Russia, India and China.

Recession looks inevitable. Economists polled by the central bank predicted an 8% contraction this year and for inflation to reach 20%.


Forecasts from economists outside Russia are even gloomier. The Institute of International Finance predicts a 15% contraction in 2022, followed by a 3% contraction in 2023.

"Altogether, our projections mean that current developments are set to wipe out the economic gains of roughly fifteen years," the IIF said in a note.

Riaz Haq said...

The #Hindu Right is turning against the #US. Until a few years ago, #Modi Bhakts were largely pro-US. Now, Joe #Biden is seen as antagonistic — if not to #India, then to the sort of India that Modi’s supporters want to create. #Hindutva #Islamophobia https://theprint.in/opinion/the-hindu-right-is-turning-against-the-us-but-india-needs-to-see-reality-over-rhetoric/895977/


By VIR SANGHVI


Even while the war in Ukraine rages, however, we should be asking ourselves deeper questions. A few days ago, at the ABP Ideas of India Summit in Mumbai, I interviewed Fareed Zakaria. Fareed’s view was that over the last decade or so, India has become so inward-looking and obsessed with its own issues and divisions that it has not spent enough time thinking about its place in the world, going forward.

While we have been obsessed with headscarves and caste arithmetic, the world has rearranged itself. No matter what happens in Ukraine, Russia will come out of the war damaged. If it makes peace, then some of the sanctions imposed on it by the West may be moderated but it seems unlikely that Putin’s Russia will become a full-fledged member of the global economy for a long time.

In that case, it will have no choice but to move into the Chinese sphere of influence. One scenario sees Russia as a classic vassal state of the Chinese, supplying energy and raw materials to feed the Chinese military machine and its industrial complex. Pakistan and China are longstanding allies, so we will probably see the emergence of a Russia-China-Pakistan alliance.

India will then have two choices. Either we agree to accept China’s suzerainty over the East. Or we look for other options.

Should we choose the second path (and I imagine we will have to), then there really is nowhere to go but the West. At present, the West understands how India is constrained by its dependence on Russian weaponry. But in the long run, it will expect a greater measure of alignment. Is that something we have considered? Or are we too blinded by the rhetoric about anti-Hindu America and hypocritical Washington?

Sooner, rather than later, we will have to rescue reality from the rhetoric.

Riaz Haq said...

Chip consortium ISMC (joint venture between #AbuDhabi-based Next Orbit Ventures and #Israel's Tower Semiconductor) to set up $3 billion plant in India's Karnataka. It will be #India's first #Semiconductor #fabrication plant. #technology https://finance.yahoo.com/news/chip-consortium-ismc-plans-3-080237787.html?soc_src=social-sh&soc_trk=tw&tsrc=twtr via @Yahoo

ISMC and Indian conglomerate Vedanta Ltd have applied for Prime Minister Narendra Modi's $10 billion incentive plan to push companies to set up semiconductor and display operations in India, the government's next big bet on electronics manufacturing.

-----------

BENGALURU (Reuters) - International semiconductor consortium ISMC will invest $3 billion in India's southern Karnataka state to set up a chip-making plant, the state government said on Sunday.

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. U.S. chip giant Intel Corp has announced plans to acquire Tower.

India’s first semiconductor fabrication unit is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs, the state's investment promotion division said in a tweet.

ISMC and Indian conglomerate Vedanta Ltd have applied for Prime Minister Narendra Modi's $10 billion incentive plan to push companies to set up semiconductor and display operations in India, the government's next big bet on electronics manufacturing.

Munsif Vengattil
Sun, May 1, 2022, 1:02 AM·1 min read

A silicone semiconductor is seen at the offices of Tower Semiconductor in northern Israel
By Munsif Vengattil

BENGALURU (Reuters) - International semiconductor consortium ISMC will invest $3 billion in India's southern Karnataka state to set up a chip-making plant, the state government said on Sunday.

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. U.S. chip giant Intel Corp has announced plans to acquire Tower.

India’s first semiconductor fabrication unit is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs, the state's investment promotion division said in a tweet.

ISMC and Indian conglomerate Vedanta Ltd have applied for Prime Minister Narendra Modi's $10 billion incentive plan to push companies to set up semiconductor and display operations in India, the government's next big bet on electronics manufacturing.

- ADVERTISEMENT -

Vedanta told Reuters on Saturday it was in "advanced talks" with Gujarat and Maharashtra in west India and Telangana in the south to choose a site by mid-May. It has a planned investment outlay of $20 billion for its semiconductor and display push.

Modi and his IT ministers outlined plans on Friday for investment incentives in the sector, saying they want India to become a key player in a global chip market dominated by manufacturers in Taiwan and a few other countries.

India's semiconductor market is forecast to grow to $63 billion by 2026 from $15 billion in 2020, the government says.

(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Editing by Clarence Fernandez and William Mallard)

Riaz Haq said...

Semiconductor Fabrication by country:

USA 44%

South Korea 24%

Japan 9%

EU 9%

Taiwan 6%

China 5%

In 2018, about 44 percent of U.S.-headquartered firms’ front-end semiconductor wafer capacity was located in the United States. Other
leading locations for U.S. headquartered front-end semiconductor wafer fab capacity were Singapore, Taiwan, Europe, and Japan.


In 2018, roughly 81 percent of all semiconductor wafer fabrication capacity in the United States was accounted for by U.S.-headquartered
firms. Semiconductor firms headquartered in the Asia Pacific region accounted for most of the balance of capacity in the United States at
around 10 percent.

https://www.semiconductors.org/wp-content/uploads/2019/05/2019-SIA-Factbook-FINAL.pdf

Riaz Haq said...

Opinion Biden’s sanctions against Russia are a double-edged sword
Image without a caption
By Fareed Zakaria

https://www.washingtonpost.com/opinions/2022/05/12/biden-sanctions-russia-could-erode-dollar-power-financial-economic/

...the unprecedented nature of these measures (US sanctions against Russia) is producing concerns around the world that the United States has “weaponized” its financial power and could lead, over time, to the decline of the dollar’s dominance, which is what gives America its financial superpowers in the first place.

I’ve been hearing about this firsthand from three sources I trust. The first, in New Delhi, recently told me about a conversation that took place at the highest levels of India’s government. The topic: how to make sure that the United States could never do to India what it has just done to Russia. The second, from Brussels, where staff at the European Commission has been tasked — even while working with Washington on the sanctions — with finding ways to reduce the role of the dollar in its energy imports. The third, an Asian observer of China, speculated that the overly severe lockdowns in Shanghai — which involved the rationing of food and basic supplies — might be part of an effort by Beijing to experiment with a scenario in which it faced economic sanctions from Washington (perhaps after an invasion of Taiwan).

A debate is raging around the world about whether the dollar’s total dominance of the international financial system is waning. Even Goldman Sachs and the IMF have warned that that might well happen. I tend toward the opposite view: Namely, that you can only beat the dollar if you have an effective alternative, which so far does not exist.

But it’s clear that many countries — from hostile powers such as China and Russia to friendly nations such as India and Brazil — are working hard on ways to reduce their vulnerability to Washington’s whims. None of these efforts has so far gained much traction, though it is worth noting that the share of global foreign exchange reserves held in dollars has declined from 72 percent to 59 percent over the past two decades.

Partly this is because the United States appears less stable and predictable in the use of its extraordinary privilege. In the two decades preceding Russia’s invasion, Washington massively ramped up sanctions for all kinds of reasons — by more than 900 percent. Many of these measures were overreactions and should be rolled back. After 9/11, Washington put in place highly intrusive measures aimed at tracking money going to terrorists. It has inflicted harsh punishments on banks that did not adhere to all U.S. sanctions. It has imposed sanctions on Iran, Venezuela, North Korea, Cuba and other countries often simply to satisfy domestic critics who wanted to “do something” without paying much of a price. This type of economic warfare has failed to change the regimes in these countries but has caused widespread misery for ordinary people in them. Sanctions against Russia are aimed at policy change, not regime change, and therefore could be more effective.

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The dollar maintains its crucial role in the international system because the United States has the world’s largest economy. It also has the most liquid debt markets, its currency floats freely, and, crucially, it is regarded as a country based on the rule of law and not one prone to arbitrary and unilateral actions. That last criterion is not one that Washington has lived up to in recent years. Biden should make sure that, in fighting this battle against Russia, he does not erode America’s unique financial superpower.

Riaz Haq said...

Chinese Views of the US and Russia After the Russian Invasion of Ukraine
A new survey taken after the Russian invasion of Ukraine finds that the Chinese are very negative about the U.S., very positive about Russia – and very confident about China.



By Richard Q. Turcsanyi
May 14, 2022
https://thediplomat.com/2022/05/chinese-views-of-the-us-and-russia-after-the-russian-invasion-of-ukraine/



Among the 25 countries respondents were asked about (Figure 1), Russia was the most positively perceived country with 80 percent of respondents saying they viewed Russia in a positive light while only 12 percent held negative views. The United States, on the other hand, was the most negatively viewed country in China with slightly more than 60 percent of respondents perceiving it negatively and 31 percent holding positive attitudes.

The other very positively perceived countries among Chinese respondents were Pakistan (73 percent), Singapore (66 percent), North Korea (62 percent), and Germany (61 percent). In turn, other very negatively perceived countries included India (56 percent), Japan (54 percent), Vietnam (48 percent), South Korea (47 percent), and Ukraine (46 percent).

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To get a more nuanced picture of the perceptions of the United States and Russia, we asked two open-ended questions in which the respondents provided their first associations with the respective country, and also a reason for why their image of the U.S. or Russia got better or worse.

In terms of the U.S. (see Figure 2), the most common association was “hegemon,” while other frequent expressions were “advanced,” “developed,” and “powerful,” but also “bossy,” “war,” “bandit,” and “sowing discord.”

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In the Russian case, the most common association was “warrior nation,” followed by words such as “Putin,” “vodka,” “vast,” “bears,” “powerful,” “war with Ukraine,” and “Sino-Russian friendship.”

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The picture we are getting is that both the United States and Russia are seen as powerful, but American power is seen mostly in negative terms, while Russia’s is almost exclusively positive. It may be noteworthy, however, that perceptions of Russia among the Chinese seem to be somewhat stereotypical and linked to the current leader, and might be lacking deeper social roots. Hence, these perceptions may be easily open to change.

When asked about how positively or negatively the respondents assess the foreign policy of major powers (Figure 4), only Russia (besides China) was seen positively, while the U.S. topped the negative ranking, ahead of India, Japan, and the European Union.



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Another major finding of the survey is Chinese people’s confidence in China. When asked about how militarily and economically powerful they perceive relevant major powers, China was seen as the most powerful one, while China’s culture was also perceived as the most attractive and Chinese universities were the most recommended ones.

We also asked how willing the respondents would be to get a COVID-19 vaccine produced by various countries. Again, Chinese vaccines were far more trusted than any other. This seems to be a result of two-plus years of propaganda painting the Western response to the pandemic in negative colors, presenting Western vaccines as ineffective, and even suggesting theories about the virus originating as a U.S. bioweapon. This may be a problem now, however, as Chinese vaccines don’t seem to be working as efficiently against the newer variants of COVID-19 as some Western ones.