Early December 2022, Taiwan Semiconductor Manufacturing Co. or TSMC announced to increase its investment in an American Arizona plant from US$ 12 billion to US$ 40 billion (eg, Market Watch, Reuters, TSMC), “one of the largest foreign direct investments in the history of the United States.”
While this story is a success for American reshoring efforts, it will also decrease the relative importance of Taiwan for USA (eg, military attack by China). Today, TSMC has a 53% global market share. Hence, the dilemma for Taiwan: (national) identity versus (economic) Power.
“One aspect of Nancy Pelosi’s trip to Taiwan that has been largely overlooked is her meeting with Mark Lui, chairman of the Taiwan Semiconductor Manufacturing Corporation (TSMC). Pelosi’s trip coincided with US efforts to convince TSMC – the world’s largest chip manufacturer, on which the US is heavily dependent – to establish a manufacturing base in the US and to stop making advanced chips for Chinese companies.”
Excerpt of 2022 Conversation article Taiwan dominates the world’s supply of computer chips – no wonder the US is worried
Taiwan is slightly smaller than the Netherlands (ie, c.87%). Despite their small sizes, both countries are economic powerhouses. From 1600 to c.1750, the Netherlands was even a superpower (eg, my 2015 blog, Quora, Wiki). Small countries need alliances to overcome their military shortcomings.
Taiwan used to have a seat in the UN General Assembly until Resolution 2758 was adopted on 25 October 1971: exit Taiwan and enter China. Ever since, China has pressed countries to stop recognizing Taiwan as an independent state. Late 2022, there are just 14 sovereign states left.
While China views Taiwan (and – likewise – Russia views Ukraine) as part of its history, the opposite party does not (eg, Pew-2020, source), A lack of (perceived) power and/or a (perceived) increase in hostile power, will often boost a national identity. Hence, its regular abuse (eg, Hungary vs EU).
I assume Taiwan has been given American security assurances following Nancy Pelosi’s 2022 visit to Taiwan. Else, the TSMC investment in USA would undermine the security position of Taiwan vs China. Example: Biden’s national security adviser doubles down on Taiwan policy after Pelosi visit.
Fortunately, China is dealing with a (self-inflicted) polycrisis (eg, my September blog). Most recently, it added a political crisis due to anti-government protests. China was forced to relax its zero-Covid policies. After all, its number of CCP members is very small compared to its huge population.
On another occasion, when a thirty-six-year-old book publisher asked about the destiny of China in 1943, just prior to his own trip to the country to serve in the capacity of a missionary, Cayce promised amazing changes in the country that would lead to more democracy and greater religious freedom. He also suggested that eventually the height of civilization would move from the West to the Chinese people: “And these will progress. For, civilization moves west.” Edgar Cayce reading 2834-3
Edgar Cayce (1877-1945) was an American clairvoyant
Arizona Sky (1986) by China Crisis
band, lyrics, video, Wiki-band, Wiki-album+song
The Arizona sky
The sky is bigger there
It took my breath away
That doesn’t happen every day
Note: all markings (bold, italic, underlining) by LO unless in quotes or stated otherwise.
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