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this technology is my new it's everywhere in the final grains of society, from mottos to manufacturing, to data centers, to communications. everything depends on somebody, conductors, somebody, conductors are going for an oil. semiconductors or micro chips are not only important. the industry around them is also highly strategic. the world's largest micro chip producer is the island of taiwan, just across from china, highlighted shape. going to be rise, which in time if we imagine china taking over time, want send me kind of the industry, the world wide columbus at the

a hi one with semi contractor is probably the best defense. here's the, let's see con shield. since the 1990, the us and europe had been offshoring much of their micro chip production, the globalization trend was griffin by differentials and labor costs. it was simply cheaper to hire workers. but with so many industries relying on semi conductors now the us and europe are in a race against time to produce their own. whoever controls the micro chip supply controls part of global industry. the world geo politics has been defined by where the oil reserves are for the last 5 decades. and i think where the chips come from is more important for the next 5 decades from taiwan to the far reaches of america. all of the world super powers want micro chips the

to make semiconductors. you need cutting edge technology about the process begins with one of the most abundant elements in the earth's crust. silicon extracted as quartz, this is 1st melted in a furnace at 1400 degrees celsius. before being cooled in silos. the silicon has been cut into all trucks and wafers the and onto the east. the

electronic circuits that form the micro processors are actually the wafers are found in all electronic devices. europe opted to outsource the production of these components to asia. in the 1991 decided to make them their key industry. so if he's a taiwan and in taiwan, we have been developing the micro process to industry, full 30 or 40 years. the sector accounts for 13 percent of all g d, p, m 5. and this is that it's very strong in, right? not even technology. it's very strong in terms of the talent supply, right, the workforce quantity. and it has the strongest, i would say, similar conduct

a supply chain cluster with global partners in terms of the inbox structure cost structure. how long become my problem is land for this kind of stuff. today, the island of just off the coast of china is the strong hold of this key industry. the taiwan produces more than half of the world. semiconductors, making the small country a vital pillar of the global economy. the impressive development is largely due to a single person. morris chang chang was born in china in 1931 and has been rated as a national hero and tie one of the social says for jobs. the somebody say i went to the function, the take out the scene, and she in 2018,

she was awarded the countries highest civilian honor by taiwan president site. and when he studied at the best american universities before founding the taiwan semiconductor manufacturing company, 40 s m. c, the chip foundry was the 1st global manufacturer of micro processors throughout silicon valley. he's admire to this day. morris. the world is full of successful people, frankly, that we've never seen impact like what you've made. and on behalf of all of us, you're my hero. the more thing i think right and the can claim to have really re shape the chip industries starting in the late 19 eighties when he found a decency he was actually present at the creation of the semiconductor industry. when he worked at texas instruments in the late 1950. so he's been with the chip industry from the invention actually uh, very idea. the,

the new business model, the pure play fundraising business model. now everybody thinks that it was a pretty clever idea, but at the time nobody needs the powerful to see with the support of the time when his government, which was a founding investor in taiwan semiconductor manufacturing corporation, began pouring money into expanding proxy capacity in taiwan, designing none of their chips in house, but providing outsource manufacturing for ship firms in europe in united states, across the world pretty quickly in the early ninety's. so, and i think the t s m c uses those trust certainly helped to accelerate the formation of a lot of fabulous companies. they will maybe $25.00 fabulous companies in the whole loads. and then 10 years later, there will 40505. this company's fabulous companies design and the market

hardware, but outsource the fabrication of this hardware to a 3rd party partner, such as t s, m c, for chips in less than 40 years. d s. m. c built an empire of chip mega factories across taiwan. these factories are impenetrable, and corporate communication is strict. interviews with employees are forbidden, as are images from inside. everyone now has an eye on t s. m. c. after all, it's a company that has the power to paralyze the world economy. decency produces 90 percent of the most of best processor trips from apple, whether it's an iphone or in video which powers many data centers using c produces many of their chips and without d as in feed production, the entire digital economy would simply ground to a halt of all of the companies, you know, in the world,

this is the only company that currently has something they make in our possession right now. there are no others. so there's basically air at and t as some c ds, embassies, stock market value constitutes over half of taiwan national wealth. the 90 percent of the world's most advanced semiconductors are manufactured on the island china. the us and europe are lagging far behind and have long had to import the bulk of their micro chips the and in march 2020. when the cove of 19 pandemic hit the world economy became even more reliant on this technology. we pushed out of our fab is 1.15 trillion chips,

well exceeding any record in the past. so we've been running at way above full capacity for a couple of years. the problem we're facing right now is that demand has just exploded and fads have 4 walls and you can only produce so many chips within those 4 walls. suddenly the western world felt its own vulnerability. in 2020, when start a couple 90, the industrial business is going on the side. they just stop. oh, the ship force company and i got the assembly keep the production capacity to some other end that's forget about the money. so you thought in in the, in the 2nd house of 2020 you in court order stall. so to pickup, who call manufacturer of us and they wanted to buy, send me conductors or the foot of a production lines were already booked by all the clients. they don't think

everyone despising for our ships, hundreds. it was a very tense time phase, how they yeah, and don't. oh, the southern, the, every country in the world wake up the money. i mean, that's begin to increasingly out demand song. they ask it to all funds that company isn't sorry, we don't have composite. we don't give you a capacity of somebody else or no the, the total eisenhower because temporarily ceased production at it's plant know workers and it's under, you have had to leave the factory which has to close for 13 days. thousands of people in mid michigan are temporarily out of work tonight and it's all because of the little chip. in 2020 tens of thousands of vehicles were left waiting and american car makers, lots for their micro processors. and 2021. many vehicles were not even produced, costing the global automotive industry around 200000000000 euros. there's a lot of analogy to what we saw in 9073, you know,

united, 73 oil wasn't good. nobody worried about oil was always there until it wasn't. now we fast forward 2020 so that i was just always been there until they weren't at all this question. so the pop up, where are they? you know, what does it come from? who is producing it is exactly why chip, since in the conduction, our strategic the globalization trend was griffin by differentials and labor costs . it was simply cheaper to hire workers in places in east asia. it was driven by typical trends in terms of shipping costs going down in terms of new i t technology is making it easier to have a firm that operated in europe in the us. and that's where the vulnerability comes in on the policy for us. and i still chris session that we did not think for a single moment that these international supply chains could be put at risk of,

i know the dream visits such a pandemic goal today. it's no longer about low cost labor reasoning. okay, so what about low cost technologies? that's fundamental for understanding this robust trend receive that apple component symbols not as ask when it pops out of the companies had been outsourcing production for decades without a 2nd thought, including from micro chips. it wasn't until cobit 19 that they solve the full scale of their vulnerability and dependence. the pandemic cuts painfully exposed the vulnerability of chips supply chains, rober, 19 pandemic, exposed for jewelry of just in time supply chains, i think for a couple of decades now in political leaders. meanwhile, have just not thought much about the industry. they've thought somebody conductors were something that plug into their computer, a smartphone, and they're thinking stopped basically right there, use of associated compose on about to create equipment. and on this for global

semiconductor shortage is cross a short form on consumer goods, especially automobiles that's contributing to higher prices around the world. and so it's only in the past couple of years with a panoramic due to the geo political competition that leaders are started thinking about is risk to limit the effects of the shortage and reduce their technological dependence. america, china and europe are taking action in 2022, each announced their chips planned for developing their own production capacity. the college of commissioner has adopted today. they, your pin chips. are susanna one with the erica brand new movie all while much available? see, trying to see that on the micro chip war has been declared. there are couple of different wars going on simultaneously. there's wars between

companies struggling for market share, but there's also competition between nations for who gets which part of the supply chain. on the 2nd of august 2022 taiwan. these television channels showed a live broadcast of the us air force. passenger jet, arriving on board was nancy pelosi then speaker of the united states house of representatives and a 3rd in line to the presidency. she was the highest ranking american official in 25 years to visit the cell for rhode island. today, our delegation came to taiwan to make kind of critically clear. we will not abandon our commitment to taiwan. i'm proud of our enduring friend. nancy pelosi posted about her visit on social media several times but

she didn't mention of very important meeting. she had he or she is with morris chang, founder of t. s. m. c. and with mark leo, the chip companies current chairman. if you look at the time was production of semiconductor, you can easily tell that taiwan piss occupied a very important place in the world. and it might come into play in the near future . but try it on my hip. the temptation to think about time want send me come back. there is something that they want to take over to. china wants to expand is the influence of power beyond the 1st item chain, how one happens to get stuck in the way and they want to take tie one over. the absolute majority of the people here say no to unification. using force becomes the only option for the child is complement who, why even if i tie one, nancy pelosi is in taiwan to night,

and china is already respond. polosa is late, 9 landing was quickly followed by news of chinese military drills all around the using missiles and fighter jets. china organized an unprecedented military blockade of taiwan for several days. a strong message from president. she didn't ping to taipei and washington showed no. do you have all the contracts to fund to be john? gosh, hello. hello. so you went to taiwan, but you'd have to come on who's pelosi when faced china? isn't she a little bit too long? and it's hard to out. the

since 1949 china is government has had it sites that on taiwan. in october 2022 and the 20th congress of the chinese communist party president, she jen ping reaffirm his intention to annex the island. she is. you have high volume and he should have some water and sewage fee that should go to more than that to find you able to not find she to all those highs each year. yeah. for sure. the shit shop china is interest in taiwan is not just a political the island is that the heart of the tech cold war being followed by the us and china that she donald's account more is allergic. china has said that they

planned to overtake the usa as technology. and of course, the conflict revolves around semi conductors which are at the heart of the 3rd industrial revolution and global tech dominance. so think of china were to launch a military and so i can tell you what the consequences would be huge like a different gosh, or no, we don't what couldn't be so about that. yeah, there is no doubt that these days, china rezone in emerging power, when it comes to somebody, conduct the most of the full front of technology, the production capacity is the most of the phones and the 2nd largest tree. we've also on the end up with mid to low end one project here, and that's a huge problem for us trinity winery or somebody got to go. and if we imagine the world was china taking over time when somebody comes out the industry and they use this as a weapon against the rest of the democracies, i'm sure the rest of the democracies,

which we relied on something comes out the industry in taiwan. i'm sure they will react in a very strong weight. high one with semi contractor is probably the best defense, the sound, the time when these are using t s. m. c, as a shield from one year to protect themselves. to prove both living semi conductor is in spite of china. so you can not just for the us, but for the global industry. and now you can and i'm just going on. yeah, united state. you make sure we are here to mix thing for you is now for all interest for the all into a for apple, for this company to be quite all a continue our business. and tanny's the maybe like can have, but the usa knows all right. we've not allowed this happen. and as an armed conflict in the taiwan strait would jeopardize the world's electronics production, taiwan can count on a powerful, military ally against china. are you willing to get involved militarily to

defend taiwan if it comes to that? yes, you are. that's a commitment we made, the idea that that can be taken by force is just not appropriate to dislocate the entire region and be another action similar to what happened in your, in your crew since day one. uh no. the bars taiwan does not have to industrial capacity in this field. and i think that the united states would be much less interested in the defense of taiwan. it goes without saying that to economic interest, and that's particularly in the field of semi conductors, spastic or crucial on central part of us. taiwan ties increase out of salt high the show me or you can know the following. her return from taiwan, nancy pelosi stood as master of ceremonies. today, mister president, with the stroke of your pen, america declares our economic independence. we strengthen our national security and

we enhance our families, the natural future. we are the united states of america. a singular place the possibilities. i'm not going to go sign and sits inside sack. and once again i promise you, we're leading the world again for the next decade. thanks. by signing the chips in science that joe biden gave priority to protecting american interest. reducing costs, creating jobs, encountering china are becoming key features of washington's trade policy. $80000000000.00 have been allocated to industry and research of which $52000000000.00 are semiconductors alone. it is the largest public investment in the us since world war 2. among the audience that day was one man who had worked

for this outcome. discreetly behind the scenes had gil senior ceo of intel, the company that invented the world's 1st single chip microprocessor back in 1971 of these days. intel is the 2nd largest producer of micro chips in the world. the i came into the role of c, e o, you know, we basically laid out this very simple view. the world needs more geographically balanced, resilient supply chains. and the world now realizes that that's the essence of the us chip back to get more geographically balanced resilience supply chains. i can't put oil reserves and my country, but i can help build fab. so my country, we have to build out the we

are coming to you live from looking county, ohio. this is the site for entails is breaking ground for its newest chip manufacturing facility. trying to build a workforce of the future. right here in ohio. brand new, $20000000000.00 campus $7000.00 construction jobs. please join me in welcoming into the state of ohio. has this tradition of manufacturing. you all like to build stuff and that's exactly what we're going to do together. we're going to build the most advanced stuff in the world right here in ohio. unfortunately,

we produce 00 of these advanced chips in america. 0. try is trying to move away ahead of us. united states has to lead the world to produce these advanced yet. and this law made sure that we will entail ceo pad dosing or is one of a handful of powerful entrepreneur. so we're close to the president in the us industrial policy and key economic sectors. and the interest of the state are connected is it doesn't the phone, but it take, uh, andrews to get to us is pursuing an industrial policy without nationalized and companies. something like funds was able to do at one particular point. so they come up with they operate through most of orders from the state department when we take a closer look at the industrial history of the united states. and we see that the military industrial complex has played a major role in the emergence of technological innovations. we measure out on e mails all of these universe, your ticket number is 8. $13.00

entails $20000000000.00 investment complex in ohio is set to be up and running in just 2 years. thanks to the chip sacked. that is to taxpayer money. the semiconductors is an expensive competitive market. i can't make those level of investments with out the incentives. so we're looking for offsets of 30 to 40 percent of a $20000000000.00 the investment. and that's exactly how the chips act is designed . and as i say to the political leaders, you know, we're not looking for handouts, but if i'm going to make this level of capital investment has to be competitive in the world market visitors and uses all the united states have realized that china reaching the technological frontier which means that china is also capable of ultra,

rivaling them on a military scale by using semi conductors that can integrate the very latest technology and threaten us military supremacy is the only proof when i say that supervising dominic to combat this, the american re industrialization strategy is accompanied by punitive and radical measures american companies are no longer permitted to work with telecoms giant one way. and s m i c. china is leading producer of micro processors. measures that in beijing are perceived as aggressions . people move and help, i sent you a way to get that locked in tom team up to 12 to 14 g o meetings. and so you should see you angel way, baylor, shit hunk. we look forward to hearing more refill

a downgrade to and you'll find out you go in there, so i'll send you over to you. so i simply have a crush here at 52 hondas uh, belcher. ginger thunder, like the united states. china is also investing billions in the semiconductor sector. it's a little avail, so far over the us micro chip legislation is not very ambitious. what's i've thought this $52000000000.00 on location is not much to taking good. we were investing a $150000000000.00, but the chinese, even though they were caught, was still have to import over $400000000000.00 worth of chips and per year there seems to be the chinese government has poured a lot of money into chip making. but it's done so in a very and effective way. china spends more money importing semiconductors than it does important oil selection that don't put the home for newly for 2 years. now, china has been investing heavily and send me conductors. i'm losing enormous

amounts of money. and so ways they have caught up about what they are still not a technological frontier each mobile can, china would obviously like to surpass taiwan. but not only because there is a rivalry between the 2 countries, but also because there is a rivalry with the united states and the desire for its technological dependence is it, as well as in response to american sanctions, chinese semiconductor production has hit an all time high and recent months, 300000000000 ships were created in the countries factories about changing the way through this. i think that many of the decisions made by the us a very simplistic what it's supposed to be without to create a goal or even stupid trip. i will be out of the values from what you all you all have seen. so my name is joe. hi, things that i am the founder and ceo of this phone. i found that out to send in 2011 question. we over the last 25 years to the lowest,

semi conduct the company specialized in ship design. but i'm assuming that this company has approximately 300 employees of which 6 they are in the chip design department. she don't cache and kinda searching the trash and can't prevent your, your scores and kind of bulk over there. they're working on integrated circuit. they perform simulation and verification like code, the micro channel for different applications. and the engine is you run through that kind of odd run dominion valley happy meal teens for now. design phones can continue to manufacture the chips in taiwan with korea whole the united states. while we found on the 2nd companies like qual, way above the find that the american ship sacked will not fix things to me. and we can clearly see their intentions because home china and want to posit, filled with any form of repressive mashhad will permanently hinder our country's development with that phone. so she's a different kind of nowadays,

china manufacturer is only around 15 percent of the electronic chips. it needs, it has and vicious goals though. it's aiming to close the technological gap and become largely self sufficient by 2025 tons and tons and tons of geale functions. such jenna, it's ivy but yet when it comes to semiconductors, china still lacks the technology. know how and production capacity this is the chinese industries greatest weakness as it's significantly dependent on foreign micro chips. the now work in china for about 2. yes. i was hired by somebody because the vice human

in 2020 professor sean g chung, a former executive of taiwan. he's company t s m c was recruited by the leading chinese manufacturer of semiconductors. currently he lives in the united states and silicon valley. before i went to china, i heard they are going to put in several 100 buildings into sending contact with the industry. i think there must be and much to pay off day window iphone. there's no mass to print you think china is the kind of comes in transit the government. what do you think, what it is that you come on between? it is not because local governments have their own funding,

they can do whatever they can. people just want to have power. if you look at the aggregate funds that china, diverse ship making is billions and billions of dollars, but much that comes from different provincial or local officials. and they all want the facility and their province or their city. so it ends up being very inefficient in terms of how this is spent. as a result, although china is firms, are subsidized, more than anyone they've really struggled in the past decade to actually improve their manufacturing capacity relative to other countries. still there is a tech war underway who will have the technology that leads right now the us has it, but our lead has been slipping and china certainly wants to have its own indigenous technology if it doesn't rely on us or tar when he is a korean or mac, right? so you, you get a chung good and the strong, a very strong, you know, i c t s m c, hell, some. so i'm the intel,

the whole very powerful. we believe we will quickly catch up with them the but these things can go far. extremely far space are not please how these are not does china have the means to achieve its ambitions? will it be able to catch up in less than 2 years? and this global rates to produce semiconductors, europe seems overwhelmed despite speeches by leaders and brussels. the on the they look at easy and to have, are you located a large number of these factories close to all the 1st time you conductors. but for a huge number of manufactured products, so we are in a sort of race that some, perhaps, rightly criticized. so i can understand some of the arguments that loaded them with

another crisis is obviously speeding things up. but we have this awareness that it's time to take control of our destiny and lay down are additional photos which by 2030 we will be capable of manufacturing 20 percent of the global production. it is crucial that we must hopefully increase the production capacity of semi conductors in your message more like a present for the external, just because you don't want to attain micro chip sovereignty. europe needs more factories like this one in dublin, a modern factory which is being built in the suburbs of the irish capital, the on the 9th. never since we call this file, it's 34. it's a 17000000000 in your project. 2 years to build it a year to put the equipment down and qualify it a year to wrap it or so it's

a it's a multi year project. in 2023. the plant had moved toward full production. it plans to make the latest generation of semiconductors, but fab $34.00 is not a european plant. it is owned by the american manufacturer, enzo added ceo had del singer the today. we are announcing our european investment program we envisioned investing up to 80000000000 euros in the u over the next decade. european commission, president versa, look, bonder land recently said there is no digital without chips and she is absolutely right, ladies and gentlemen. a month ago,

the commission present at the euro pain chips act. with this act, we will, the president of the european commission appears and entails promotional video advertising it semiconductor plants and all resilience in total. more than 43000000000 euros of public investment. both european union and national level investment will support the chips act until 2013 the you unable to reach technological independence alone is thus working with american companies. in the trade war between the us and the china, europe seems to have the worst hand the old golf canker. product of new still had several manufacturers in the 19 eighties and nineties. since then, the use of all either closed down or being acquired by americans or sometimes even by asian companies. european countries have failed. essentially, what you're up is trying to do now is secure at supplies. you know,

as i pull in case we have further g, a political turbine in this industry, just as long as you put a ticket on, they'll set the gums. although brussels can count on 3 european manufacturers of micro chips including one major champion in the industry. the a s m l is a dutch firm. few people have heard of but it's this company that makes photo lithography machines incredibly advanced and precise machines that are capable of engraving even the smallest object without a s m l. we wouldn't have semiconductors for our mobile phones the what we are doing. we make a big slide project. she are providing

a machine that actually takes the design of a complete to check. and it translates that's designed onto a carrier carrier, is the micro chip that when you open your phone, you'll see all these little chips sitting there. you know, that's what we do. it's expensive, but it's like a slight project. just one of these machines costs at least $150000000.00 only t s m c and tell em samsung kind of for them. there's a very profitable industry piece. i'm see, they have announced that i want to spend the $140000000000.00 over the next 3 years . so i'm so save a lot of money, a pencil. more than a $100000000000.00 disorders, already 3 or $400000000000.00. i only 3 manufacturers allocated to build out that capacity. why would you then, from the risk management point of view, put everything in asia. you want to distribute this across the globe is logical

vision why intelligence? american company comes to your business. why do you some sheets armies company goes to the united states? does somebody have to industry is an expensive industry to compete in building a new facilities and costs $20000000000.00 for one plant? so any effort to change the geography of where factors are located is gonna cost a lot of money. now the question is, is it worth it? i believe we have been too dependent on age and i would like to see us reassure our manufacturing don't get what globalization is being questioned to go. it's impossible. the globalization is positive gold plan, right? so the way that should countries fund a thriving industry that's riding on the highways of demand for semiconductors, government and incentive eyes. subsidize those big companies to just start such a big project as a kind of a cool partnership. governments and manufacturers working hand in hand in asia,

europe and the united states, the chips, moore has only just begun. as mike ro, chips have become the main raw material of the digital age. the. there is no way to vacation without somebody there is no green without somebody conductors, and there is no national security without somebody conductors. it's that important to the future. let's treat it with that priority. present. it is also please get on the real busy side welfare. what can you know, some companies that have developed a unique expertise under faring well in this new geo political situation. and therefore, it is these companies that are able to impose their decisions on governments across the globe. your i listen to the net, you relevant, the will this micro chip war that is

both commercial and political, reveal the limits of globalization. the semiconductor crisis fueled tensions between china and the us. will washington be able to maintain its current strategy? or will it have to contend with china, a country that may use violence in the global race to close the technology gap? the, the

a pulse of the beginning of a story that takes us along for the ride. it's about the perspectives culture. information. this is the, the news w. mine's whales under threat. marine biologist, sabina,

i rode the conducts research of the time frame protected area for whales. but more and more also, she discovers the syringe it why is this happening? why is the protection of whales not lacking in 19 the d w, the ones for robots back to one giant leap for exploiting the ocean floor. cutting edge technology is looking the potential of deep sea mining. but this time, a research team will study the possible risk funds in order to minimize that we

have an opportunity to to get it right before we start environmental activists. all of the rules fail billions to be made out to the entries deep. the greed dots, december 7th, on dw, the this is the w news, and these are our top stories. guys, as homeless for on health ministry says at least 12 people have been killed in an as riley, striking a hospital in the north of the territory is ready. army said its forces had responded to shooting from within the hospital, but that it has not showed the building. guys, or officials say hundreds of palestinians are still inside the facilities. evident .