chip curbs as well. 1% pop for tsmc. we are expecting earnings coming out later on here today, a lot questions going to be dominant about what the fourth quarter guidance is going to be if in fact they get this. hopefully we will get some clarity in that earnings call. rishaad: one would hope so. we have the u.s. government shipping equipment. tsmc not saying anything about this right now. it is really all about what the federal reserve interprets is what is going on with regards to inflation. looking for a read coming out this evening, hong kong time. those minutes really showed they were prepared ultimately to sacrifice growth in order to put a kibosh on inflation, and this is really relevant to what drove policymakers to their third jumbo-sized hike, if you will. neel kashkari, of course, minneapolis fed, he has been talking about this saying the bar is very high for there to be a pivot on federal reserve policy. >> for me, the bar for such a change is very high because we have not yet seen much evidence that the unde

tsmc giving everyone a surprise.sts expected, hinting that q4 sales growth can be more than 43%. analysts were estimating 40%. this is a good sign. it is also holding this long-term view that the companies' long term sales goals can still maintain at 50% and above. and also keeping the target long-term post margin, above 53% . even though it is a three-year process that incurs higher depreciation costs in the longer term, so that is something that is giving positive support to these sectors right now, when everyone is panicked about the futures. haidi: what else should investors be watching for? d the construct -- because fundamentally, the outlook is still dire. charles: for the longer term in the future, investors still have to be cautious because the management team didn't give us a clear answer on the broader impact from the u.s. curve of advanced ship exports to china. i think the management team is just throwing aggression back to u.s. customers like intel, nvidia and amd. we still have the view that this could

chip stocks are under pressure and we get tsmc earnings later. manus: don't ever say i don't read your emails, you can see the little tick, she's chasing me this morning, i don't read enough of your emails. i read everybody's emails. have a look at the oil market, because somebody needs to read the one from america and the one back from saudi arabia. we are down .8% on wti, opec trimming the demand outlook, that validates the saudi opec+ cut. and then you have this salvo of rhetoric between the u.s. lambasting the cut, and you have the saudi's talking back to the u.s. narrative, saying they acted in good faith. "it was with noble objectives," dollar-yen flat at the moment, cable steady relative to the chancellor throwing policy under the bus. let's talk gilts. where do you want to start because where i think the bank of england snarfles up every single offer that was in the market was that to deliver stability, or is it another sign of panic to come? dani: pensions have not taken the boe up on their offer, but yesterday base will in and buy a rec

tsmc is a global company.he reason it exists is because it has dried to take a neutral stance and collaborate. the value chain is extremely long. it is a specialized area from materials, ip, manufacturing. the reason tsmc has succeeded is in an open collaboration that it had with customers. we are looking at tsmc and some supply chain companies really being squeezed from nonmarket sources. they have to take difficult decisions in order to align with policies as well as catering to the markets. being located close to some of the biggest customers benefited them. if they had to move some assets to other places, it could be a logistic challenge for them. not saying they would not do it, but is one concern. anchor: as yang was saying, there are interconnected parts. and if the policy will be effective, it needs everybody to do their part. means other countries allied with the u.s. to go along with what the u.s. is trying to do. how essential is that? >> the u.s. has introduced a framework which would make the deco

-- foundries, like tsmc?ct is they will not be able to take any orders from the chip designers. -- the chinese chip designers. that will probably impact 10% of overall revenue, of tsmc, in the coming several quarters. that is what the preliminary assessment is so far. . >> tsmc has really lost a lot of market share, just this year. what can we be focusing on that will matter to investors? >> that is a good question. this afternoon, the tsmc managers had a briefing on the results. most importantly, what they agreed on on futures, we are not sure that -- with the u.s. action on huawei, apple, mediatech, the top chipmakers, this time, we are seeing that the sector is very weak. there is a lot of uncertainty. so we do not know what will replace the cat. -- replace the cap. they are quite confident so far that in the last earnings that we saw, they are still moving 50%, 55% of capital intensity. that is a record high. but we are not sure, if we will keep the same percentage in the coming quarter. >> which companie

talk us through the breaking story you had about what tsmc is trying to do. debbie: we've seen this set of u.s. export control rules have impacted not just american firms but foreign companies with business relationships with china. what we reported over the weekend is tsmc has stopped production for this chinese chip production because based on the public domain information, they've actually outperformed the 100 chips which are now banned for the chinese market. companies now have two follow u.s. rules like they did a couple of years ago when they u.s. blacklisted huawei. what's happening now is companies are tightening technologies and we've seen the dutch equipment supplier, asml telling its u.s. based staff to halt services to chinese customers due to u.s. regulations, restricting from the chinese chip industry. caroline: given the news that upended the market, perhaps moving away from such growth tech names, the fact we saw alibaba folsom much, what does it mean for the chip sector at the moment? debby: following the u.s. analysis of this new set of rule

but i bet you in your answer, you focused on taiwan and tsmc and that's important. but, but i want to get back to those supply chains and what's actually happening in japan, what's happening in korea and what's happening in china. so let's just imagine there's no war. but because the chinese have decided that up there they're attacking ism against taiwan, we decide that we're going to isolate economically china. so now chinese products, chinese manufacturing facilities, chinese chip operations are no longer available to the west. what what happens then for first officer say that you'd have ramifications far beyond electronics. so from toys to textiles to shoe production, there's a lot that goes on in china. but just in the electronics part of the the economy itself, most of the chips that china buys are sent on to export in third countries later on. so they're put in a smartphone, put in a pc, put in a server, and then sent abroad. and so if trade with china were cut off, that would all become impossible. now, we could still probably build smartphones, but we need t

tsmc taking a hit on the back of venues.us: the stoxx index had already been under a lot of pressure. keeping an eye on the likes of asml, and let me check out what is going on with the dax. that will give you a little bit of an indication. a drop on the decks of 1%. sticking with the german theme, olaf scholz will support the issuance of joint european debt to ease the energy crisis. bloomberg. ♪ -- next on bloomberg. ♪ >> the pockets of every country are different. many countries have undertaken similar measures sometimes earlier, and you can't compare them one-on-one. what we have been trying to do as ministers of finance, to see what we can do together, where the means can be found and how we can take a longer-term view. manus: the dutch finance minister speaking with maria tadeo yesterday about the fiscal response to the energy crisis. since we have had a bloomberg's group that germany is changing tack to support joint debt issuance with conditions. let's get to maria, this is quite a pivotal moment for germany, they we

tsmc still lower by 6.6%, the biggest drop since 2021. we continue to see the fall here.will ta millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. >> 11:29 a.m.. account balances divide estimates. the adjusted deficits, first time in history we have had back-to-back adjustments taking place after the country. u.s. curbs on china hit the tech side of things. yvonne: you're seeing them come back for the holiday. we don't know how disruptive this can be, this seems far-reaching, this was impacting the ev sample. we have the european commission saying it's crucial. >> we are increasing market share by 2030. yvonne: not much of

be destroyed. >> china says -- some of the chinese communists say, let's invade taiwan and occupy tsmc-owned company. then we will be a super power! united states and japan and europe, we don't supply them chips, they will follow chinese orders. but that's naive. >> why is that naive? >> not only chip company, even a sausage company, you need a recipe. you need human capital. you need to know how to manufacture, manufacturing that kind of product. if there is reunification, what would happen to you? >> die. >> die? >> yeah. if they annex taiwan, people like me, a lot, will be perished. >> beijing has sanctioned wang ting-yu personally for being outspokenly pro-taiwan's independence. he passionately defends the country's progressive democracy. we saw campaign billboards everywhere, validating the island's commitment to clean elections and freedom of speech. beijing has promised that if there were reunification, taiwan could maintain many of its freedoms. and yet -- in 2019, china broke a similar promise to hong kong, protests led to beatings, arrests and stripping of democratic rights.

but the weird thing is tsmc doesn't seem as worried about u.s. export restrictions that aim to hamper china's ability to make advanced chips. on the conference call which was really early this morning management said the new rules were, quote, limited and manageable then you also have silicon design firm sinopsys saying the rules won't impact revenue and reaffirmed guidance, the stock is trading a little higher up, 1.3% right now but you have other chip makers that are sounding the alarm. equipment maker applied materials cut the forecast yesterday evening blaming the new china export rules they predict it will cut sales by $400 million in q4 give or take about a hundred million then nvidia we know about a month ago previously warned of the same $400 million impact there are also reports now companies like kla, alam, has started to pull employees from china's chip makers or like asml have told u.s. employees to stop servicing chinese customers. the export restrictions clearly hitting an industry that is already suffering a downturn john >> yeah.

maybe saying it's limited and manageable like tsmc said.ve been able to mitigate this, working on possibly shifting the supply chain. the concern is supply chain shift will go to taiwan. the problem with the united states is the concentration is all in taiwan. we don't necessarily want this should geopolitical tensions raise and the dynamic between both countries disintegrates >> trying to bring some of it home, christina. that's our kristina partsinevelos. coming up at the top of the hour on "techcheck," a lot more on netflix. interesting levels 277 will be a six-month high, first time to the 200-day since january. that begins in about 20 minutes. don't go away. - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs

we are told tsmc has not reached 80 can ocean on whether adults meet the u.s.or restrictions. those are your first word headlines. haidi: still ahead, signs of a downshift at the fed has mary daly says it is time to start talking about smaller hikes. plus the future of lies in the hands of xi and his all-male inner circle. this is bloomberg. ♪ >> we will work with all of people to champion humanities. common values of peace, development, equity, justice, and freedom to promote global peace and prosperity to keep pursuing a shared future for the community. china cannot develop in isolation from the world. the world's development also needs china. shery: president xi jinping has filled china's most powerful bodies with his close allies while also securing a precedent breaking third consecutive term at the close of the party conference in beijing. let's bring in stephen engle in hong kong. is it safe to say there was little compromise with his picks ? >> in hindsight of course we could have protected this because the moves were in place for a shooting pain to stac

what makes tsmc such -- so unique is that actually, -- intel all trust it with their most investable cash designs and trust their ip will be protected and they trust that to the benefit of the whole. people say china one day wants to invade taiwan and the moment china grabs tsmc, the moment and puts his hand on it, it is worth zero. their whole compare of advantage is trust. and that is where i think i would be advising president she --xi because you been eroding trust and you have been building a vertical stack of every element of the semiconductors supply chain. with more complex -- we do not -- it's a completely global stat. it is a really interesting proxy for the future where there is a learned ability. mr. li: i agree with you. the chinese talked about that and this shortcoming the weaknesses of china. and that area is very clear. the question is in other areas like about aviation -- now it is catching up by ai china. and almost equally powerful as the united states. so the question is, when china can catch up with this for how long, i do not know the answer. i xi jinping think

the tsmc has not reached a conclusion on whether byron's products reach. the u.s.or restrictions. fed officials prepared to roll another 75 basis point rate hike next week while iana downshift to incremental increases. mary daly says policymakers should start planning for smaller hikes of 25 or 50 basis points. chicago president -- chicago fed president charles evans says the fed will have to guard against overshooting on restrictive policy. south korea is pledging $45 billion to support credit markets under pressure from rising interest rates. the finance minister says korea will look to prevent a credit squeeze on corporate bonds and other short-term money markets. it is one of the biggest rounds of support for korean markets since the start of the pandemic. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. haslinda: still ahead, boris johnson says it wouldn't be right for him to divide the conservative party by running again for prime mi

it makes sense when you think about tsmc's customers like amd and video qualcomm that have guided lowernvidia, almost 4% higher all of these companies, they are posting a rebound, 2% or higher, but the rebound is despite the new export restrictions aimed to stop china from building advanced chips this is something that's hurt the sector over the last while, but they dont seem that worried. they said the effect was, quote, limited and manageable silicon design firm synopsis echoing tsmc saying the rules won't impact revenue they said this earlier this morning and reaffirmed their guidance other chip makers are sounding the alarm. you have equipment maker applied materials who cut its forecast blaming the new china export rules. they say sales will take a $400 million hit in q4. invideo warned of the same $400 million impact, and kla and lam research have started to pull employees from chinese chip hubs so clearly these exports rules a downturn for the sector. >> also, important, i reviewed the tape you said shift >> let's hope we have viewers who watch every day and know what your joke i

however, lam can sell equipment to other corporations based in china like samsung, tsmc, for the nextr without a license. that's when we could see the impact from a year from now if they don't get the license these rules could mean a $400 million hit to revenue what will lam say after the bell today? >> what do you want to hear and what do you need to hear >> i mean, we want to hear something about their margins. their margins have been holding up well. if they can continue to do that it might help the stock. one of the things we have to realize, the last decade the stock has only been this cheap one other time trading below ten times forward earnings just before the fed pivoted in 2018, the stock is getting oversold how much bad news could you possibly get in the whole sector a lot of bad news is out there and we could get a short-term bounce any kind of good news. >> thank you very much folks, thank you all very much folks, thank you all very much "power lunch" starts right nowdr family connected. with a heavy duty commercial grade engine and no refueling, even when the power goes o

and one taiwanese company, tsmc, in fact, accounts for half of the global market.ionship with china? because china is one of your big partners... mm—hm. ..economically, trading, and yet it's this foe that we've been discussing. and there's talk about a silicon shield, that this kind of supply of microchips can protect you from an attack by china. yet, on the other hand, it could also prove a very attractive, valuable acquisition for china. so, how do you see it? yeah, i think the silicon shield, so—called silicon shield, is a symbol of the trust that the entire world places on the made in taiwan chips, because as you mentioned, the chip power everything from the military to science and so on. the trustworthiness of the manufacturing of those chips, the cybersecurity, for example, the e—187 cybersecurity standard were built from taiwan to ensure the trustworthiness of those chips in its computation. that is very important. so we see that as truly an asset, that made in taiwan, m—i—t, the "t" also stands for trustworthiness. and so i think this idea that things made

pilots flew in taiwan, they are transferring to the united states of america the largest companies tsmcproduces semiconductors and the main recipient of the us benefit, are practically destroying the economy of the rest of the non-russian and non-chinese world, in fact, their allies. they issued dried up and discarded. the actions of the states began long before the current conflict. let's remember that they began to drag real production from asia to their territory. and 10-12 years ago today they have already reached the biggest german concerts they clean up in the european continent. that is, in fact, the united states is doing what our president was talking about, we should always create such a system so that we can fully provide for ourselves. that's what they're doing today, the united states is just a scale. naturally. the planet we have all seen the map that showed the minister of defense, in fact. i want to tell viewers, i do not want to scare you, but this information is open, but, in fact, we are surrounded, so to speak, operational. as for divisions, a huge number of troops l

shares of chipmaker tsmc are down over 6% on the taiwan exchange. also in the red. it comes after the biden administration published a sweeping set of export controls on friday, including a measure to cut china off from certain semiconductors made anywhere in the world with us equipment. the world's biggest flower show, held once a decade, has largely failed to blossom. figures show the floriade, which has just closed, made a loss of approximately 100 million euros for the local authority in the netherlands. dutch media is referring to it as the "flopped floriade". reviews have been dismal, the cost—of—living crisis and covid have kept a cautious public and tourists away. our correspondent anna holligan has been speaking to those behind the scenes who, despite the disappointing turnout, are trying to focus on the bright side. the forecast was for 2 million visitors. in the end not even half that number came stop. i am concerned about the structure of the floriade. i5 structure of the floriade. is there anything positive to say about the flower show?

the pilots flew to taiwan, they are transferring the united states of america, the largest companies tsmc, which produces semiconductors and the main benefit recipient of the united states, are practically destroying the economy of the rest of the non-russian and non-chinese world, essentially their allies. they squeezed dried out and discarded. but these actions of the states began long before the current conflict. let's remember that they began to transfer real production from asia to their territory 10-12 years ago. today they have already reached the largest german concerns. they are removing the european continent, that is, in fact , the united states is doing what our president was talking about, it is always necessary to create such a system so that we can fully provide for ourselves. that's what the united states is doing today just on a grand scale. naturally. the planet we have all seen the map that showed the minister of defense, in fact. i am i want to tell viewers, i don’t want to scare you, but this information is open, but in fact we are surrounded, so to speak, operational

the latest news overnight was from tsmc, that cocked capital spending plans and that is a signal to theorld of tech that is expected in a slowdown in demand for chip manufacturing. the other big story is this a ramp up in tensions between the u.s. and china. but we are on an upward trajectory for thursday and as we have shown on the screen, the stocks have underperformed to the broader market today. the question is, when do we bought him out? how much further does that have to run? emily: ed ludlow, thank you. netflix will reduce -- introduce an advertising supported plan on november 3, charging seven dollars a month for subscriptions. the streaming service hopes to attract price-sensitive customers at a time when growth has plateaued. joining us is chris palmeri, who helps us cover netflix. how competitive would you say this price tag is? >> very competitive. this was a lot lower than people anticipated. seven dollars a month is one dollar below disney's eplus. one dollar below hulu. three dollars below hbo max. this is netflix putting a stake in the ground and saying, we are here to g

tom: tsmc cutting their planned expenditures by $10 billion, an indicator of their concerns about demandrticularly smartphones. swinging back to the boe, not of volatility 54 minutes into the training session for gilts, do you expect yields to be kept and this volatility to ease at the end of the day tomorrow? >> that strongly depends on the wording next. there seems to be a war between the political leadership and the monetary policy leadership, and the question is who blinks first? it makes no sense to do this at this point in time, there are so much issues around the world, the last thing we need is another blowup. usually it is the central bank who is the wiser end, i hope they do the right thing and help to calm down that market. francine: thanks much, j.p. barnert with the latest on some of the markets. u.k. companies are facing loan requests from pension funds. this is a story from our pension expert, facing calls to provide emergency loans to their employee pension schemes. this is where liquidity comes into play, we have a backstop from the bank of england through some refinanci

majority market share, majority production of advanced semiconductors come from tsmc. market capitalization. it is one of the top 20 companies in the world it is a sleeping giant in taiwan if china controls taiwan, there are scenarios where in a war scenario, production could go out entirely lights could go out in that factory. even if china took it over peacefully, china dictates the returns. what i think china is playing for is part of the longer grand bargain. they've been producing what we need in turn, they haven't gotten access to the intellectual property from the west my personal view is what they're playing for is a grand bargain. we'll make what you need but in the return for intellectual property that we get back. >> let me press you on what you're going to be investing in. >> sure. >> a little bit more about what does the u.s. supply side look like how quickly, how long do we need for a viable industry to emerge and to be a substitute for our dependence on taiwan right now >> great question. i think it's going to take several years at minimum new foundry, f

they were taking tsmc out of taiwan and putting them and take arizona has pilot program. this bill would lead to much larger efforts to bring or keep manufacturing in the united states on such an important national security assets. to bring trillions of dollars here, not overseas, but most importantly, protecting this key national security asset. everything from your phone to your vehicle. from my perspective, the most advanced weapons systems have vast chips. that was a generational transformational bill that the intelligence community says is going to make a big difference in how we confront china. >> you are an author of the chips act. that was going to be my next question, would you address that. i know you are also a leader on export controls. i was wondering if you could talk about what was happening there. we have essentially been selling china a lot of advanced technology and you have been calling for stronger controls. what do we need to do to protect this critical technology? >> as i understand the mindset, i like looking back historically. i first got elected t

tsmc is building a new plant in the u.s.. that is a look at first word news. yvonne: still ahead, are look ahead -- a hawker central-bank and recession risk. david: the latest on the u.k. with liz truss pledging an iron grip on finances as she fights to stay for leadership. our reports from the conservative party in birmingham. stay tuned for all that. this is bloomberg. ♪ david: you are watching bloomberg markets. we have poured through some of the research notes. here is a partial list morgan stanley things we are near the bottom in equities. there has been a pushback from others saying when you look at the earnings expectations, have not fully apprised of coming recession. it is still mixed. the jury is still out on equities. yvonne: credit is one place still looking resilient. let's bring back john woods. you are looking at the ig space. what makes you more interested in this area? >> in comparative terms, the yield has moved more than high-yield. we are seeing asian high-yield back to -- asian investment-grade back to 6%. we have not seen that level since

also you at tsmc reporting earnings and they were talking about the fact they will invest less cap acts. a lot of macro headwinds for the sector. guy: looking forward to the conversation with the secretary later on. let's focus on what's happening in the u.k. because it's been a significant source of volatility. u.k. officials bloomberg officials understand are discussing how to back down from prime ministers liz truss massive package of unfunded cuts. to restore some degree of economic credibility to the u.k.. the chancellor of the exchequer speaking in washington a little while ago. >> our position has not changed. coming up with the medium term fiscal plan on the 31st of october as i said earlier in the week and there will be more detail then. what i'm focused on is delivering on them -- on the mini budget. guy: joining us now to discuss, macro hive ceo and head of research. once again been in the market in significant size today. let's talk about the politics. he says he's not going anywhere. if he's going to keep his job he needs to navigate his way through this process, a process

as you mentioned, last week, we saw its top customer, tsmc, cut its target by 10%, and another producerchipmaking equipment cut its forecast for the fourth quarter. asml seems to be confident in the strong demand it is seen and it will continue to navigate this difficult environment based on the continued demand for its tools. guy: april, thanks for the update. really appreciate it. april roach joining us from amsterdam. we are getting headlines regarding the u.k. it looks like the home secretary is leaving. we will get more on that in a moment. european equity markets coming into the close here off their earlier lows but still down. ftse, dax and cac all down. higher yields is really the biggest impact today. we are also seeing a weaker euro. we have seen yields climbing, putting pressure on areas like real estate. more details to follow. the close is next. this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the bes

the estimate had been 50.3, two key customers tsmc and micron have cut spending, so that is a headwind for them. manus: there is delayed revenue recognition going into 2023 of about 2.2 billion, the essence of the chip angst is biting is extending curbs on u.s. tech selling into china, those restrictions have everybody running for the exit. big players are pulling people out of china, but the first instance is the fourth quarter guidance which has moved incrementally to the upside at 6.6 billion. dani: we have so many earnings and some of the companies we are watching for today, let me take you through those, we are expecting nestle, the world's largest food maker, concerns about the consumer, economic turmoil, soaring inflation and the follow-up from the ukraine war. we will get mining company anto fagasta and a real estate investing firm. manus: we will find out more from the biden administration on what additional spr oil they may release, the voices warning about economic risks. oil up .9%, cable studies at 1.1322, the bank of a live will do cutie just got on 30-year paper. neel ka

industry heavyweight tsmc is building a new plant in the u.s. as china ran some military threats -- ramps up military threats. spacex has launched a nasa mission to the international space station. the mission had been delayed several weeks. the crew is due to arrive thursday after a 29 hour journey and a schedule to spend six months in orbit. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ >> still ahead, a look at where the u.k. government goes from here, as prime minister liz truss tries to rally the conservative party following her you turn on top level tax cuts. and coming up first, despite a major drop in u.s. job openings, our next guest says the fed will not inhibit until inflation is back in its target range. rebecca felton joins us just ahead. don't miss our exclusive interview with new zealand's finance minister, grant robertson, as they signal more big hikes ahead. he joins us at 10:30 a.m. hong kon

and it will disrupt the global semiconductor supply chain which starts in taiwan with tsmc and other that china views as a strategic asset. when that happens, i think there's a big, big shock that's underappreciated, stuart, where we will lack access to high-end semiconductors that power phones, computers, even power refrigerators. i think it undergirds our modern way of life, and the sad part is i think the investing public is undereducated on this because financial institutions are afraid to talk about it because of their ties to china. that's what's going on. stuart: got it. one more for you. as the protests in iran enter the fourth week, do you think there's enough media coverage here in america? it seems like a real shift, a real change over there. >> look, i think that this is one of the biggest developments in iran since the last revolution, since the overthrow of the shah. this is a big deal. i have been a little bit surprised to see it undercovered by the mainstream media, and i think what's going on here is normally a story like this, a pro-femme mist if media complex would

the advanced chips are made there so they dominate the world and if the company that produces them, tsmcr took place there, that would all shut down, it likely would tank the world economy and certainly america's economy as a result of it and china would have a major problem themselves so what taiwanetaiwanese recognize, thea built in shield for themselves in terms of the high tech platform. the d-day invasion in terms of annexing taiwan by china is what everyone focuses on. but it's not the most likely. the most likely is a quarantine or blockade where china takes control of taiwan in terms of what goes in and what comes out without having to fire a shot. that would require taiwanese to retaliate against them. and obviously i think they would. i mean, that's what certainly their plans are. but that is the most likely and that would preserve the high tech industry inside of taiwan and not destroy it as a result of an invasion. that is -- that i believe is the most likely action. now, i don't think this is imminent but after president cy's election in january of '24, the current incumbent

. >> near-term definitely seems positive for tsmc in that, hey, going to continue to need chips fromaiwan. china's not able to spin up its development. but got to wonder, de, what the next shoe to drop is how does china respond to this in a tightening global economy a their still raging ambition to do it in this country. >> key when will we see that? haven't so far and what everyone's trying to figure out. if we see it, where, how, a big question for the chip space. >>> quick programming note heading to break just over a week away from cnbc's first-ever top start-ups for top ratings, pow ering digital transformation according to tech executive council's find out more at cnbc.com/tec back in just aomt. men y. this is connecting your people and content in one place. this is the system you built to transform your business. this is how. airtable. at humana we believe your healthcare should evolve with you and part of that evolution means choosing the right medicare plan for you. humana can help. with original medicare you are covered for hospital stays and doctor office visits but you'll

names gaining exemptions from chip restrictions on china and a stronger than expected quarter out of tsmcmer cypress semiconductor ceo t.j. rogers to get a closer look. i'm particularly interested in the impact on equipment makers and on sort of leading edge fabs into the future. china's had this ambition to build its own domestic capability, but that's looking tougher right now. what does that mean for other companies that are trying to build up capacity, including potentially intel? >> well, china stated ten years ago that they wanted to become self-efficient on semiconductors and they worked on it, but fortunately for us semiconductors are a relatively unique business where freedom and free markets matter a lot, and that's why your industry is always dominated people who have an axe to grind might define it as percent share manufactured which doesn't matter that much anymore the term foundry was invented by a cal tech professor, and i find it insumlting but what he said i the semiconductor, the brain part of the function will be in the chips, what's on the chips and how small the gee n

right now we are getting our semiconductors mostly from taiwan, from tsmc and in light of all of thert of the world, that's very dangerous some it's very important that we bring manufacturing home and in addition, the biden administration passed this ban on exporting advanced semiconductors to china. not just on us but trying to essentially compel our allies to play along. and this is a big thing. for too long we have been facilitating the rise of the chinese communist party which stated, articulated its goal of undermining us and the world that we and our allies have built and so i think right now this is a bipartisan issue. there isn't a lot democrats and republicans agree on but this is one thing that chinese communist party is an increasing threat and like we are now seeing the threat of russia and putin very clearly, we need to see that threat very clearly and we don't want a war but we need to start acting more aggressively than we have in the past. maria: it's a very serious issue. i wonder what your thoughts are on the surveillance programs in america that are coming from the

businesses could shift to other countries like taiwan or japan tsmc is considering japan because of geopolitical not the united states. lastly, if china can't make advanced chips they could focus on low-end chips making it harder for companies like intel to compete on price. many of thee companies have already received a one-year reprieve from the chip restrictions, but the new rules put companies like samsung and sk from south korea in a tough spot to remain neutral considering they already have a presence in china. for now, china still lags behind taiwan, south korea, and the united states in manufacturing the most high-tech chips but the new export rules are in pursuit of artificial intelligence dominance and ultimately economic dominance in the coming decades. >> and if chinese policymakers are worried, you have to wonde if retaliation is part of this equation, if and how that happens. >> exactly good piper sandler with an ear to the ground this morning when it comes to spotify initiating the name at neutral, $87 price target catch the full call at cnbc.com. we're back in two. hi, my name is

weekend, the ministry of economy said they are going to follow this rule that's significant given that tsmc this side if the administration, certainly congress will want the administration to push our friends and allies more. the dutch, the south koreans, the japanese, all have companies that can help china develop its space, so the administration is going to have get more than a moral and verbal commitment from these countries, asml from the dutch side, sk and samsung from north korea -- from south korea, and tokyo electron from japan. all of these companies are going have to do more if the goal here is to really deny this technology to china. >> i'm a huge fan of your work talk about leverage. they have it -- china that is in spade in terms of what they own and in terms of our bond market and stuff, and if you're a country that's willing to lose battles in order to win wars, should we be focused on that the movement in the country bond markets are startling? >> i'm not a trade so i can't speak to bon market but what i can tell you is you're right to think about asymmetric ways in which ch

great opportunity to catch up, considering that china is the biggest market, including the taiwanese tsmct is the world leader in the semiconductor industry americans. however , they took her out of the blow to work with china, like, how can south korean samsung also send everyone else for a special license, which washington will issue only for special merits , pressure on china the united states will not stop a new package of sanctions against three dozen chinese tech companies will come into force on friday, and fcc sources are already reporting a new ban on huawei from which the us-china technology confrontation began, which is only confirmed. yes, these are the words of sidepin about the importance of technological independence alexander bavatsky maxim kolpakchi nikolay petrov news from beijing the government is extending family mortgages so that more young parents have the opportunity to purchase their own housing. the decree was signed by prime minister mikhail mishustin. let's start today, i said at an operational meeting with vice-premiers, the cabinet of ministers. it will also a

those warnings from micron and others, slashing output plans in response to dwindling to borders, tsmcding this year by 10%. samsung reporting its first profit drop since 2019. you see the trend here. now with texas instruments, those shares sank considerably overnight, spreading beyond the computer industry and phones. t.i., texas instrument has the largest customer list in the semiconductor industry. but producers of cars and industrial machinery contribute more than 60% of the sales of -- of its sales. you look at sk hynix, operating third-quarter profit fell 60% to 1.7 trillion w on, miss some estimates consider ably. sk hynix diagnosed the semiconductor memory industry is facing unprecedented deterioration in market conditions. >> you can get a roundup of all the stories in today's edition of "daybreak: asia." go to dayb . you can customize your settings so you only get the news on the assets you care about. this is bloomberg. ♪ >> widespread power cuts may be a sign of things to come. water rose are also hitting the massive dam part of a global how drew power crisis that is b

like the moves with tsmc samsung, with the factories in the u.s. that is going to continue.ese actions, micron and intel also stepping up investment. one piece out of this, more of a diversified chain. you will see more capacity on the ground. >> randy, the signs that we got last week when it came to the results from andy and samsung were not that positive. it seems that in a matter of months we went from boom to bust, shortish to glu, when it comes to the semi conductors industry. are there any bright spots investors can look forward to? and how much of all of this has been already priced in? >> ok, yeah, that is a good question. for the impact, as we go through the results, it is still going to be a tough results season. because really the fear of the supply chain, the supply here to demand for your with the concerns about recession, but also demand fear because of a slow down pc or smartphone. as demand slows down, we see other levels push up. now it will be reduced inventory. back to the opportunity. stocks champion well in front in terms of selling off. we have seen a 4