After the world watched with bated breath for Beijing’s reaction to the American stunt, the lack of a flare-up may seem underwhelming – but it’s not
China’s ‘lack of response’ to Pelosi visit is not weakness — it’s strategy
H/T: THE NEW DARK AGE
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Video via Harald in China
Beijing has severed communication with Washington in several areas in retaliation for Nancy Pelosi’s trip to Taiwan
China cuts ties with US on critical issues
H/T: THE NEW DARK AGE
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Beijing Cancels U.S.-China Military Bilateral Efforts
China’s cancelation of the three military-to-military cooperation could have national security consequences given it reduces the level of engagement between the United States and China. To that end, the China-U.S. Defense Policy Coordination Talks (DPCT) have been in place since early 2005, designed to provide senior level dialogue in support of the China-U.S. Military Maritime Consultative Agreement (MMCA). The MMCA, in place since 1998, is meant to reduce the likelihood of an inadvertent incident at sea.
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With the cancelation of the DPCT and MMCA, the likelihood of an incident similar to that which took place in April 2001, when a U.S. EP-3E Aries II aircraft collided with a Chinese aircraft. The EP-3 was able to make an emergency landing on China’s Hainan Island. The 24 crew members were taken into custody and eventually released some 10 days later. It would not be until July 2001 when the dismantled EP3 was flown out of China.
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The ability for Defense Secretary Austin to communicate directly with the PRC Minister of National Defense, General Wei Fenghe remains in place. Indeed, in June 2022, Austin and Wei held one-on-one discussions in Singapore where they discussed improving crisis management. Those discussions have clearly been overtaken by events of the day. In addition, “The Secretary reaffirmed the importance of peace and stability across the Strait, opposition to unilateral changes to the status quo, and called on the PRC to refrain from further destabilizing actions toward Taiwan,” according to the Department of Defense readout in the meeting.
Apple supplier Pegatron has denied media reports claiming shipments to and from its factories in China were being held for scrutiny by Chinese customs officials, following a Pegatron executive’s meeting with U.S. House Speaker Nancy Pelosi (via DigiTimes).
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Pegatron is the second largest Taiwanese contract electronics manufacturer and iPhone assembler behind Foxconn, while TSMC is the sole supplier of Apple’s custom silicon chips and the world’s most valuable semiconductor company. All three firms operate plants in China.
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Update: Nikkei reports that Apple on Friday asked suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations, which state that Taiwanese-made parts and components must be labeled as being made either in “Taiwan, China” or “Chinese Taipei,” language that indicates the island is part of China.
Apple Supplier Pegatron Denies Reports of China Blocking Shipments
TSMC To Become NVIDIA’s Sole GPU Supplier In 2022
The Taiwan Semiconductor Manufacturing Company (TSMC) is set to rapidly grow its market share by the end of this year according to a fresh report from Korea. TSMC is the world’s largest contract chip manufacturer, as it is responsible for supplying semiconductors to most of the world’s largest technology firms. This list includes the Cupertino, California consumer electronics giant Apple, Inc along with chip designer Advanced Micro Devices, Inc (AMD). Additionally, TSMC is also in partnerships with Intel Corporation and Qualcomm Incorporated, both crucial players in the modern day semiconductor industry.
Now, it appears as if the Taiwanese company might soon be responsible for supplying NVIDIA Corporation with all of the latter’s graphics processing units (GPUs). NVIDIA already has a partnership with TSMC for some of its products, but purported problems at the company’s other chip supplier, the Korean firm Samsung Foundry, will force it to switch sides completely to TSMC according to Business Korea.
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The complete switch to TSMC, if true, is ironic since NVIDIA had originally intended to retain some power over suppliers by diversifying as much as it could. TSMC and Samsung are the only two companies in the world that manufacture and sell chips built through advanced technologies (below 7nm) to other firms. NVIDIA is rumored to have agreed to pay as much as $10 billion to TSMC for jumping to the 4nm ship, and the company is also reportedly in talks with Intel Corporation for the latter’s Intel Foundry Services (IFS) plans that will mark Intel’s entry as another player in the contract chip manufacturing industry.
Heard someone say that NVIDIA doesn’t rely so much on TSMC, anymore, but it turns out not to be true. Maybe they meant that they didn’t rely on Samsung, anymore?! On another note, looks like Pelosi dumped some Apple stock before she bought and sold Nvidia.
Related:
TSMC celebrates the near completion of its 5nm Chip Manufacturing facility in Arizona
The company’s Arizona facility would begin mass production in the first quarter of 2024, according to TSMC Chairman Mark Liu’s announcement from the previous year.
The chips made in Arizona are likely purchased by Nvidia, Qualcomm, and Apple. The new Arizona facility should theoretically enable Apple to produce its 5nm bespoke silicon chips for the first time in the country.
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The Arizona facility will be the business’s second production location in the United States. Although TSMC’s primary factories are in Taiwan, the company also has a factory centre in Washington, a design centre in Austin, Texas, and two design centres in San Jose, California. For more updates, follow TechGenies.
Third, the CHIPS Act actually has provisions designed specifically to restrict investments in China. These so-called “guardrails” require that companies taking federal dollars for American projects must also agree not to invest in state-of-the-art technology in China—not just with the federal dollars, with any dollars. Good-faith critics have raised fair concerns that these guardrails should be broader, tougher, and firmer. But any guardrails at all represent unprecedented restrictions on what U.S. companies can do in the People’s Republic. It’s one thing to say an ideal bill would hurt China even more; it’s quite another to try and claim that less-than-perfect restrictions count as “help.”
In 2015, Robert Parry, the late investigative journalist and founder of Consortium News, wrote an article titled “The Mess that Nuland Made.” It summarized the aftermath of the 2014 coup in Ukraine that was engineered by Victoria Nuland, who served in Obama’s State Department and is back working for the Biden administration.
Nuland’s coup sparked widespread unrest in Ukraine, Russia taking Crimea, and the war in the eastern Donbas region. The day that Russian President Vladimir Putin launched his invasion of Ukraine, the title of Parry’s salient article wouldn’t get out of my head. Nuland’s meddling in Ukraine reflected an overarching neocon, deep state agenda, but the chaos that has ensued since will always be her legacy, and her mess.
Now, as China’s People’s Liberation Army (PLA) is lobbing missiles toward Taiwan and holding its largest-ever drills around the island, another woman that is a fixture of the establishment in Washington is to blame: House Speaker Nancy Pelosi.
The Mess That Pelosi Made
When Nancy Pelosi made her ‘woke’ flight to Taiwan the U.S. seemed to hope for a Chinese military reaction to it. It positioned an aircraft carrier and two amphibious landing ships in the region. It also shipped additional fighter planes to Japan and South Korea.
How Pelosi’s Visit Hurts Taiwan
Lee Barrett mentioned, in his recent video, that sand is also used for semiconductors.
$9 billion facility to make microchips, electric-vehicle parts while promised plant for Wisconsin yet to happen.
Foxconn In Talks for Saudi Arabian Plant
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The House speaker’s trip came after Congress passed a bill that includes $52 billion to subsidize domestic chip manufacturing
Pelosi Meets With Taiwan’s Top Chip Industry Leaders
Previously:
Senate Passes $280 Billion Industrial Policy Bill Meant to Counter China
Hopefully, the TSMC-Arizona deal doesn’t go the way of Foxconn-Wisconsin!
Ms. Cat’s Chronicles 
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