in size to be able to, while in case that's i think a is back to, to be able to respond to the need. so there's a fee, but we hope that there's a ceasefire. so thank you. selling a ways with unicef. the political and industrial tug of war surrounding micro chips that's, that's the vibrant habitat listening place of long in the mediterranean sea mazda. i am just following up to coming to us exploring modem, lodge styles, attributed to a name admitted to alien jenny. this week on the dw,

this technology is my newt. 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, i'm sort of 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. highlight issue 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 high one with semi contractor is probably the best

defense has the se con shield. since the 1990s, 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. 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 caught into all trucks and wafers. and on to the east,

the electronic circuits that form the micro processors are asked. the wafers are found in all electronic devices. europe opted to outsource the production of these components to asia. in the 199 the, the high one decided to make them their key industry. so these, i'd say, why didn't tell you? well now we have been developing the micro process to industry, full, socio force to use 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 key role in taiwan. so that you can, the social says for jobs, the somebody say i went to the home, she fell down, take all the tea and she in 2018. she was awarded the countries highest civilian

honor by taiwan is president side in 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. moore's 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, neat and clean do have really re shape the chip industry, 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 19 fifties, so he's been with the chip industry from the invention actually a 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 production capacity in taiwan, designing none of their chips in house, but providing outsource manufacturing for chip firms in europe in united states, across the world pretty quickly in the early ninety's. so, and i think the g s m c uses those trust certainly helped to accelerate the formation of a lot of the fabulous companies that will maybe 25 fabulous companies in the whole loads. and then 10 years of data 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. the cmc built in the 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 as 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. ready 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 half of 2020 you in court order stalls to, to pick up 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 was fighting for our ships 100. it was a very tense time phase. how that. 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. the company is a, sorry, we don't have composite, we don't give you a capacity of somebody else on. okay. the, the allies in august temporarily cease production at it's plant know workers and it's under, do you have had to leave the factory which has to close for 13 days. thousands of people in 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 was

a 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 odd a you know, what does it come from? who is producing it? is exactly why chips and send the conductor and our strategic it's the globalization trend was driven 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. but i said, 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 trying to explain 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 has 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 them. so it's usually the composite. i'm about to create equipment and on this for global semi conductor shortage is cross a short form on consumer goods,

especially automobiles that's contributed 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 meters 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 and during 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 his 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 language for mode. you have all kinds of 200 to 2. see john bush fashion. hello sir. hello. so you went to taiwan, but you'd have to come on, who's pillows, you in face china, isn't she a little bit too long? and it's hard to out. the

since 1949, china is government has had its site set on taiwan. in october 2022 and the 20th congress of the chinese communist party president. she jen thing, reaffirm his intention to annex the island judges high volume and he should have some water and sewage fee that should go to more than that. unity find tribble tongue. not following see sure what all those highs you should be all for sure. sure, sure. 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 where to launch a military. and so i can tell you, one of the consequences would be huge, like a different gosh, or i'm going to make sure that we don't what couldn't be sorry about that. yeah, there is no doubt that these days trying to rezone in emerging power when it comes to somebody, conduct the most of the full front of technology dot 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 blankenships, and that's a huge problem for us trilogy. while, as somebody got to go into, if we imagine the world was trying not 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 relied on some kind that the industry in

taiwan, i'm sure they will react in a very strong weight. high one was 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 politically and militarily. meantime, one must remain capable of manufacturing semi conductors 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 states, 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 require our continue our business and tanny's. maybe like and have but the usa and on us, all right, we're not to allow 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 navi, by 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 particularly in the field of semi conductors, spastic or crucial on central part of us, taiwan ties crushed 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 it 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 interests. 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. hot gill singer, ceo of intel, the company that invented the world's 1st single chip microprocessor back in 1971 of the 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 change in the world. now realizes that, that's the essence of the us chip back to get more geographically balance resilience supply chains. i can't put oil reserves in my country, but i can help build fab somebody country. we have to build out the we are coming to you

live from looking county, ohio. this is the site for intel is breaking ground for its newest chip manufacturing facility. 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 intel b o. we made 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 chips. and this law made sure that we will entails 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 t economic sectors. and the interests of the state are connected is it doesn't the phone, but it take a andrews to get to us is pursuing an industrial policy without nationalized and companies or something like front was able to do at one particular point. but they operate through most of orders from the state department. when we take a closer look at the industrial history of the united states, we see that the military industrial complex has played a major role in the emergence of technological innovations. i would measure out on

e mails, all of these universe, your technology 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 tax payer money, the somebody, conductors is an expensive competitive market. i can't make those level of investments without 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. is it as nice as all the united states have realized that china

reaching the technological frontier would mean that china is also capable of ultra rivaling to me on a military scale? by using somebody, conductors that can integrate the very latest technology and threaten us military supremacy is the only proven i see that's what i'm assuming dominic at the, to combat this. the american re industrialization strategy is accompanied by punitive and radical measures. american companies are no longer permitted to work with telecom 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 once. yes. that locked in tom team up to $12.00 to $4.00 to g o meetings. and so you should see you, angel way baylor, should come clean,

co co teaching mach refill a downgrade trends you'll find out you're going in. so i'll send you over to so i simply have a cookie 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 on this 50? $2000000000.00 allocation is not much to taking good. we were investing a $150000000000.00, but the chinese, even though they were caught, was still have to impulse over $400000000.00 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 nearly 40 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. yeah, that's what they are still not at the technological frontier edition 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 a change in order that 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 each or even steep and chip on will be all over the values from now what you all you all hi pete. 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 launch, the semi conductor company specialized in chip design team here for this year. this company has approximately 300 employees of which 60 are in the chip design department to don't cash. i'm kinda searching that's. i've seen companies in your, your score that kind of bulk over there. they're working on integrated circuits. they perform simulation and verification code at the micro channel for different applications and the engine into about doing the kind of $500.00 millions of dollars of value happy meal teams from now, you know, design phones can continue to manufacture the chips in taiwan with korea whole the united states suite you on the 22nd companies like qual, way above the fine that the american chips are not fix things to me. and we can clearly see their intentions because home china, i don't want to project. i filled with any form of repressive mashhad timing of the 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 that needs. it has ambitious goals, though. it's aiming to close the technological gap and become largely self sufficient by 2025 tons and tons and tons of g o. function. 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 the window. i found this no mass to use. think china is the kind of concentrated government for do you think what it is that you come on? because 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 in 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 tie when he is a korean or mac, right? so you, you give her chung good, the strong, a very strong, you know, i see g s m c o some. so i'm the intel,

the whole very powerful. but we believe we will quickly catch up with them the but these things can go far, extremely far space on the sage. how 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 is it, and they have, were you located a large number of these factories? not the only 1st time you conductors but for a huge number of manufactured products. so we are in a sort of race that some, perhaps widely criticized. so i can understand some of the arguments that modem

with another crisis is obviously speeding things up so that we have this awareness that it's time to take control of our destiny and lay down or unofficial photo. and 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. and you're looking to see more like a percent. what i'm showing is because i 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 done and, and qualify it a year to wrap it or so it's a it's a multi year project. the in 2023. the plan had moved toward full production. it plans to make the latest generation of semiconductors. but fab 34 is not a european plant. it is owned by the american manufacturer, intel added ceo, have del singer, the today. we are announcing our european investment program we envision investing up to 80000000000 euros in the u over the next decade. european commission president ursula bunder 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 with the president of the european commission, appears and entails promotional video advertising it semiconductor plants and all resilient in total. more than 43000000000 euros of public investment. both european union, a national level investment will support the chips act until 2013 the u. 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 compulsive death. he 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. so essentially what you're up is trying to do now

is secure at supplies. you know, is that in case we have further g, a political turbine in this industry, just as long as you put a ticket down dose. that 3rd also comes 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. we are providing

a machine that actually takes the design of a complete the chip. 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 chip 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 ts mc intel, and samsung can afford them is a very profitable industry piece. i've seen, 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 dental more than a 100000000000. dr. told us 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.

this is why in sales american company comes to your business. why do some sheets are always going to go through the united states? that might 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 going to 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. just don't get white glove bl as ation is being questioned. it's impossible. globalization is part of gold plan, right? so that way that should countries fund a thriving industry that's riding on the high wave of demand for semiconductors, government, so even incentivize 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 more has only just begun as micro chips have becomes a main raw material of the digital age, the innovation without somebody that does the original dream without somebody conductors. and there is low national security without somebody conductors, it's that important to the future. let's treat it without priority. because of it is also please, you won't be able to pay the 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 joint. alicia, and after that the relevant will this

micro chip war that is both commercial and political, reveal the limits of globalization, the semiconductor crisis, fuel 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

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this is the w news line from berlin, a 2nd set of hostages freed from gaza. there are in motion over unions, intel of these, but only after a mos militants, delay. the release of 13 is re lease and 4 tide, nationals accusing israel, a violating its pledge to allow aid into the northern gaza strip. meanwhile, crowds on the west bank some waving homeless flags, cheer. the arrival of more palestinians released from is really james the.