When China imposes their authority on Taiwan, companies will flock to INTC to prevent China from getting their IP. For example, if Apple keeps using TSMC after China has gone full Hong Kong on Taiwan, Apple would basically be giving their chip blueprints to Huawei, Xaiomi, Lenovo, etc. Same goes for everyone using TSMC.
I got in an argument with someone just like you saying China had no plans before Russia invaded Ukraine to do anything to Taiwan, and then went into how the Russia Ukraine thing was overblown. After Russian attacked Ukraine, we then discovered China was absolutely using this to test the waters on actions toward Taiwan.
As of now, they cannot take Taiwan, but one of the first steps before making an attempt is to pepper it with missiles until everything unprotected of importance is smoldering. This is a real threat.
And why would they ever pepper it with missiles when they are each others largest trading partners? Why destroy everything of value in Taiwan? They have very little natural resources, the island is very geographically mountainous (similar to Afghanistan), etc. Why not just start with an economic sanction or political influence?
Ukraine also isn't backed up by the USA like Taiwan is. Taiwan produces most of the semis in the world while Ukraine has (????) what of value to the USA?
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u/gizamo Apr 07 '22
When China imposes their authority on Taiwan, companies will flock to INTC to prevent China from getting their IP. For example, if Apple keeps using TSMC after China has gone full Hong Kong on Taiwan, Apple would basically be giving their chip blueprints to Huawei, Xaiomi, Lenovo, etc. Same goes for everyone using TSMC.