hasn't been as much investment in new chip manufacturing plants as might expect now taiwan semiconductor manufacturing and now it's $100000000000.00 investment intel in announce a $20000000000.00 investment in new plants in the u.s. so these big chip manufacturers are really stepping up to the plate and investing large amounts of money to get their production up but bear in mind it takes quite a few years to get a chip manufacturer part up and running it's not like you put 100000000000 dollars on the table and tomorrow you're up and running it takes years and years and it takes years to optimize it and get all the production facilities up and running it's going to some time before this investment really hits the market has an impact on supply area where the c.e.o. of. thank you so much for lending your insight today. thank you. it's time now for quick break but when we come back our movie theater is set for a major boom after the vaccination process on the other side of the pod we bring in a true analyst to give us his outlook as we get a break here are the numbers at the close all green arrows on the

. ♪ ♪ shery: -- caroline: taiwan semiconductor manufacturing warns a shortage of semiconductors may extend. the world's largest contract maker as listed targets this year for spending and growth in says automaker clients can expect chip shortages to ease next quarter, with deficits going into next year. the company joins industry giants who warn of deficits due to unprecedented demand for everything from cars to game consoles to mobile devices. chinese carmaker geely is introducing a new car to take on giants like apple and huawei who want to take on the ev market. we spoke to them earlier. >> we are critical for this. it was funneled for geely. no matter its brand, products, themes, organization or culture, which is no different than any other tech company. caroline: all of this as german's -- germany's diebel introduces in all electric vehicle and aims to usher in a new era for mercedes, transferring it from a name of high-powered production engines that can maybe rival tesla on the ev front. the ceo ola kaellenius spoke to bloomberg's matt miller. >> something we have been doing researc

global semiconductors production has declined since $9092.00 from 37 percent to around 12 percent today and what we're seeing is a rising dominance of south korea and taiwan in semiconductors manufacturing particularly in the very high and chips and so this is now creating supply chain disruptions this year with your out of 2021 so far we've seen ship shortages supply chain disruptions that are hitting many industries that are very heavily reliant on semiconductors spitzer hillary their orders so the u.s. is now recognizing the supply chain vulnerability and taking strategic option to increase its share of the global semiconductors industry but of course this will take time i think it is very much achiever both physically with such large investment under president biden's infrastructure plan but it will take some years so that at the moment the world is facing a semiconductor shortage shouldn't we need i mean one now you say it takes time but you also say it's doable is it in the interests of the global economy for the waste to really catch up with ace and supply a so far it's been sort of nicely balanced asia was supplying semiconductors and the west was using it. well i think what we'

. ♪ caroline: as we mentioned early, -- earlier, taiwan semiconductor manufacturing warns a shortagenductors may extend into 2022. the world's largest contract maker has lifted targets this year for spending and growth in and says automaker clients can expect chip shortages to ease next quarter. overall, deficits will go into next year. the company joins industry giants who warned of longer than anticipated deficits due to unprecedented demand for everything from cars to game consoles to mobile devices. meanwhile, speaking of cars, chinese carmaker geely is introducing its new electric car unit to take on tech giants like apple and huawei who want to enter the ev market. the ceo spoke earlier on bloomberg. >> it is exactly created for this. it was funneled from geely to become a new product. no matter its brand, products, themes, organization or culture, which is no different than any other tech and internet companies. all of this as -- caroline: all of this as german daimler introduces in all electric vehicle and aims to usher in a new era for mercedes, transforming it from a name t

. ♪ rishaad: we are looking at taiwan semiconductor manufacturing out with numbers a bit later.trong first-quarter set of earnings. amid this global chip crunch. shares hit a record earlier this year after surging 60% in 2020. our next guest expects earnings to reach the top end of guidance. joining us is kirk yang. kirk, give uis a -- us a sense of what you are looking for when they come out with numbers. to say they are strong, would that be perhaps underplaying it? kirk: good morning. i am sorry, i am having some difficulty hearing your question. rishaad: kirk, i don't think you heard me properly. give us a sense of what you are looking for when these numbers come out. kirk: sorry. i cannot hear your question, but i am guessing you're asking about tsmc. we expect tsmc to announce strong results this afternoon. up 17% year on year with strong second-quarter guidance likely flat q on q. the most important thing i would look for is the company guidance. tsmc earlier announced they would announce -- with capex around $28 billion this year. we expect it to potentially increase bid

taiwan semiconductor manufacturing warns that a global shortage of semiconductors may extended next yearthe spending and growth. automaker clients can expect the shortage to begin easing next september. dell technologies exploring a possible sale of its cloud business, the latest effort by the ceo to trim down the personal computer maker. it could be valued at up to $3 billion. dell announced plans to spin off its stake in vmware. that is your latest business flash. alix: thanks so much. the european close is up next. we've got a big buying spree here in the bond market. yields down by about seven basis points in the u.s.. btp's and gilts leading the charge in europe. we will examine that with russian yields as yell with bluebay's senior market strategist. this is bloomberg. ♪ ♪ ♪ alix: live from new york, i'm alix steel. i'm counting you down to the european close on "bloomberg markets." is every thing you need to know from europe at this hour. the biden adminstration unveils sweeping new sanctions on russia, including the feared restrictions on buying new sovereign debt. and germany's

blacklisted seven chinese companies to keep the largest chip maker in the world the taiwan semiconductor manufacturingny from selling advanced chips to china. those chips could have been used to make advanced weapons. beijing still lags in domestic manufacturing of computer chips. >> it's been trying to get its hands on the equipment. and so far it's not been very successful. so you can easily imagine a scenario where beijing decides it's worth the risk and actually invades taiwan to gain control of this vital industry. >> former president trump's deputy secretary of state has the following advice for the new biden administration. >> we need to make it much more clear to the chinese that they will be defeated if they seek to change the status on the taiwan straits. >> experts say whoever controls the design and production of these semiconductor microchips will set the course for the 21st century. an example of how important the pacific region is to the pentagon. both defense secretary lloyd austin and general mark milley, the chairman of the joint chiefs flew out to hawaii today for the change of comm

manufacturing for even if they are close u.s. allies. take example the taiwan which dominates semiconductor manufacturing producing over 60% of the global market leading the pack. taiwan is very vulnerable geopolitically. it's the middle of increasing tension for china. it's also natural disasters like earthquakes. we've also seen that it is because of the water intense nature of semiconductor manufacturing recent drought in taiwan is really the industry there as well. so today's discussion cannot come in a better time to talk about semiconductors where there is meeting at the white house going on amongst industry leaders representing carmakers. as well as semiconductor manufacturing as well as a commerce secretary. they will be addressing immediate needs that are being faced particular by the auto manufacturers by the lack of access to semiconductors in a timely manner which led to temporary layoffs as well as a decrease in car output. but really this successful outcome should also focus on coming up with the strategic vision for the technology industry at large. and addressing some of the

taiwan, korea and china. there are high risks in depending so heavily on east asian manufacturing, even if they are u.s. allies. take taiwan, which dominates in semiconductor manufacturing. producing over 60% of the global market. taiwan is vulnerable geopolitically. it is in the middle of increasing tensions with china and is vulnerable to natural disasters. we have also seen that it is because of the water intense production of semi-chip conductors, a recent draft has it there as well. today's discussion could not come at a better time to talk about semiconductors because there is a meeting at the white house going on amongst industry leaders representing carmakers as well as semiconductor manufacturers meeting together with jake sullivan as well as commerce secretary gia -- gina raimondo. they will be discussing the immediate needs being faced particularly by the auto manufacturers who have been particularly hit by the lack of access to semiconductors in a timely matter, which led to temporary layoffs as well as a decrease in car output. it is really a successful outcome of this meeting should also focus on coming up with strategic vision for the techno

semiconductor shortage into a migraine. a what are we talking about here? well, we need to tell you that taiwan is home to about two-thirds of the world's semiconductor manufacturinghas seen -- drought the country has seen in half a century. why does that matter? water is used in massive amounts at these plants to manufacture semiconductors. again, we were already having this horrific shortage, but now companies like micron and united micron electronics, taiwan semiconductor, who all have plants are there -- there are arranging water trucks to help keep cranking out those chips that companies around the world desperately need. what's really going on there? here with an inside look is somebody who knows. cypress semiconductor cofounder t.j. rogers. t.j., you know, you know exactly how the manufacturing process works. can you illuminate us as to the water that's involved and why the drought is so crucial. >> sure. chip plants use use a huge amount of water. we're talking about metric tons per day. and by having said that, the rainfall in taiwan is 80 inches a year. in minnesota where our big plant was, 30 inches a year, and in california where their semiconductor pl

threat to the united states and the rest of the world is if we lose taiwan, we lose a huge manufacturer of semiconductors. once we lose that, it is game over for the digitalized economy in the west. jonathan: i want to highlight it, you just made for a second. do you really think they're trying to provoke a war or trying to assert their power, their dominance in the region to the rest of the world? there's a difference. william: that is why i am not a diplomat the state department. yes. that is the right way to put it. i want to emphasize to our audience how serious the issue is. they will go to the edge of war to assert china is back in the global diplomatic gains as an equal to the u.s. and they should not be thought of as emerging-market except wti when they still want subsidies. jonathan: william lee, milken institute, thank you. let's take a moment to celebrate what is happening in the u.s., which has got to be the envy of most of the world right now. vaccine day north of 4 million just this past saturday. the average is north of 3 billion -- 3 million doses. phenomenal. tom: the vexing processes th

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. men. factory capacity as a matter of national economic security administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production tempus resolve the mom likes we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles and the fates of the former minneapolis police officer derrick chauvin will soon lie in the hands of the jury his lawyers rested their case on thursday he chose not to testify and they're arguing show in should not be convicted in the george floyd murder trial john hendren has a story from minneapolis. your honor at this time the defense rests with that testimony ended in one of the most highly charged u.s. civil rights trials in decades i have repeatedly advised

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing capacity as a matter of national economic security top administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production and tell us resolve the bomb techs we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al jazeera los angeles. this is out there these are your top stories russia's foreign minister sergei lavrov says he lost 10 u.s. diplomats to leave the country mirroring the expulsions of russians from the u.s. washington they've also announced an array of new sanctions against the kremlin lover of says russia is looking at imposing painful measures on u.s. businesses but he's in the usa of indianapolis says it's.

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing capacity as a matter of national economic security top administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production to help us resolve the bomb mix we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles. cuba's leadership is passing to a younger generation ro castro and before him his brother fidel wrote the islands for 60 years use on latin america editor the soon human power his seuss navarro and his wife haven't missed an episode of the series conquering a dream a special state t.v. production about the cuban communist party. it's part of the lead up to the end of the castro era window castro renounces his last and most powerful position for a moment

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacture. capacity as a matter of national economic security top administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production to help us resolve the bomb mix we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles. brazil's supreme court has confirmed its decision to a no criminal convictions against former president the desilva last month the cold rule that there was not treated fairly in a series of corruption investigations nearly as now eligible to run in next year's election against the current president jaya both and our want to have has more from rio de janeiro. it all started with one justice from the supreme court saying that moolah had been tried convicted

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing capacity as a matter of national economic security administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production help us resolve the mom next we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles. brazil supreme court has confirmed its decision to no criminal convictions against former president hu that the silver last month the court ruled that lula was treated unfairly in a series of corruption investigations justice carmen the sierra reverse or other positions if in the court's 5 judge panel in the us favor lula is now eligible to run the next year's election against presidents jr both sonando. the u.n. envoy for yemen has warned of dangerous signs of

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for a string. thing u.s. manufacturing capacity as a matter of national economic security top administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production to help us resolve the mom next we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles the number of corona virus infections is rising across several parts of asia thailand as recording its highest number of cases since the outbreak cases are also rising in malaysia florence there are reports from penciling jaya. after managing to keep case numbers relatively low compared to other countries thailand is now seeing an increase this week alone it's reported 5 record tallies the outbreak has been traced to a number of bossa nightclubs in the

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing capacity as a matter of national economic security top administration officials are in recently president joe biden called for strengthening u.s. manufacturing capacity. as a matter of national economic security top administration officials are meeting with leading chip manufacturers meantime are reaching out to our allies semiconductor companies and others in the supply chain to rip a production to help us resolve the bomb mix we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles. i want to turn to some economic developments china reporting an 18.3 percent leaf in economic growth over the past 3 months it comes a week after the international monetary fund for cost a yearly growth of 8.4 percent for china this year leading the wilds pandemic recovery the us the largest economy will

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing. pasadena as a matter of national economic security top administration officials are meeting with leading chip manufacturers meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production to help us resolve the bomb mix we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles. bring you some breaking news now out of hong kong the 1st sentences are being passed and in that trial we understand that media tycoon jimmy lie has been sentenced to 15 months in prison for unauthorized assembly cheering the 21000 protests and the veteran democratic activist martin lee has also been sentenced to 15 months in prison so that is 15 months from arson me and 15 months for jimmy law i will bring you more on that story as it comes in. a brazil supre

taiwan semiconductors. reliant on some of the third-party manufacturing.here is no explicit commentary at from executives. it seems that amd is doing well because of broad-based demand and because they may be stealing market share from intel. emily: amd is reliant on tsmc to manufacture chips. the ceo there making big moves. ed ludlow, thank you for that update. we will be following those results. coming, ev battery maker quantum skape recently called a scam. the quantum scape ceo heading back at critics. we will interview the ceo next. tesla shares down a day after the company recorded record profits. investors are shrugging. a sign, perhaps at the lofty expectations among the critique from analysts, tesla did not offer specific estimates for vehicle deliveries in 2021. this is bloomberg. ♪ emily: a new report says amazon will surpass walmart in u.s. retail sales in 2025. the report suggests the world's biggest online retailer has just too much momentum that walmart can't stop despite big investments in its own e-commerce. darren baker saying the pandemic

that worldwide chip short age we talk so much about so demand for manufacturer equipment is off the charts last night taiwan semiconductor forward thinking company on earth committed $100 billion in last three years, increase from what it's been talking about no wonder koa, lamb research, all have been red hot. later the commodity chip maker will tell a story of incredible demand i expect semiconductor prices to keep soaring so chip makers will meet capacity which means, applied materials should amazingly have more room to run we heard from paychecks. it's a post journey pattern with incredibly payroll prosseror or human resource consultant has had to deal with this for years now a bunch of negative analytics have been wrong and will stay wrong even if it reports a great quarter. speaking of weakness, i got to get this off my chest, started this morning, i was dead wrong about car max about last week during the game plan i figured this huge car dealer was almost a can't-miss situation. i thought they reported a great quarter because there's such a huge demand for vehicles we just seen carvana that was magnificent. lithiu

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing compact. city as a matter of national economic security top administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production to help us resolve the bomb mix we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles a strenuous federal court has found that google misled consumers about the possible data but it collected the case had to do with settings on android smartphones google was found to have misrepresented what options were necessary for people's dates and not to be collected the online giant says that it may appeal a study as consumer watchdog who brought the case says it's an important victory to take companies particularly those providing services for

leads the world in semiconductor design but manufacturing is heavily concentrated in taiwan south korea and japan recently president joe biden called for strengthening u.s. manufacturing capacity as a matter of national economic security top administration officials are meeting with leading chip manufacturers in the meantime are reaching out to our allies semiconductor companies and others in the supply chain to ramp up production to help us resolve the mom likes we face now increasing ship capacity will take time and it won't be cheap a single semiconductor plant can cost $20000000000.00 to construct robert oulds al-jazeera los angeles pakistan has imposed a ban on all social media often violent protests earlier this week on wednesday security forces fired tear gas to disperse a sit in following the arrest of the leader of the technique in the bike party the religious group wants the government to expel the french ambassador its also demanding a ban on french products after the publication of cartoons in france depicting the prophet muhammad come on haida reports from islamic dot. the

competitiveness for attracting semiconductor manufacturing, and simi conductor investment overall, and if you look to china, taiwan south korea, all of the areas where there's been substantial growth in the percent of semiconductor manufacturing taking place, it's with a set of coordinated policies to invest in that country, and in some ways it's a policy of those countries that it's so fundamental to their economic base and national security that they are going to do things beyond normal tax policy to incent. really the u.s. has not taken that position, and so i think you can point to the success of others as a way of perhaps pointing to, if we took a more direct focus on everything from the grants that have been discussed over time and the investment tax credit that is focused on this, this is really a direct response to what is happening in the rest of the world. >> thank you. i hope -- again, i hope we will be able to work on this and i am glad we got it into the nda, and this is a subject, jay, you and i have worked and talked about for a long time. i frankly think if we look back over the last year, the gove

taiwan semiconductor will spend over the next three years to grow its chip capacity. it is the world's leading manufacturerd semiconductors, and is planning a record expenditure. it is working with customers to overcome demand. working from home is likely here to stay, that is the finding of a survey of 2000 companies in the u.k. most are planning to allow greater flexibility when and where people do their jobs. two thirds of companies are developing a hybrid work model. do not miss our special show at 8:30 a.m. anna: thank you very much, laura wright. president biden has kicked off his infrastructure push. reacting to the plan, dallas fed president had a bullish tone. >> the nice and desirable thing for me about infrastructure spending, it is a long-term investment. it should help in the future create higher potential gdp growth, higher sustainable growth, better productivity. i would differentiate infrastructure spending from other physical spending. anna: bob parker, investment committee member, quilvest wealth management is still with us, waiting patiently. thank you for staying with us. in kaplan's vi

in design in in the equipment manufacturing however the globalfoundries had that that other the producers of the semiconductor chips are located in asia ts m.c. of taiwan and samsung korea so. so the supply semiconductor supply chain is highly integrated why us leads in the high value added portion of the semiconductor production but nevertheless the world the world has experienced or last 12 months a huge shortage in supply and it's all europe as well tried to somehow change that in catching up can we can we actually compete eventually with asian supplies. it would take time and building a foundry in europe and an and rebuilding the infrastructure for foundries in europe or in the united states would take a long time and so recruiting the engineers and suppliers i chemical suppliers and materials suppliers. take additional time so it would take. take a few years for europe europeans and americans to catch up with the foundries a few years and we talk about $210.00 what is more likely a few years. well. it depends on the policy of each country so you know just thinking about moving the plants moving the equipment. talking about top cultivating engineer

. >> control of the semiconductor industry in taiwan, china would control the global market. they would have access to the most advanced manufacturingolling the world's oil. >> martin lobster is at the center for new american security. he says the challenge taiwan poses is one of the biggest for the biden administration, beijing sees it is a renegade province preserving the semi conductor industry. 70% of the microchips in the world are made of taiwan in south korea, china the biggest consumer accounting for 60% of global demand and their appetite is growing rapidly. the white house blacklisted 7 chinese companies to keep the largest chipmaker in the world from selling advanced chips to china using making advanced weapons, beijing lags into mystic manufacturing for computer chips. >> china is trying to poach talent and get its hands on the equipment and has not been very successful so you can imagine the scenario where beijing decides it is worth the risk and invade taiwan to gain control of this vital industry. >> reporter: experts say whoever designs these microchips sets the course for the 21st century. neil: between rare earth,