tsmc also in the positive right now.re having a down day for a second day in a row. that is it from bloomberg markets: asia. ♪ (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com >> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees.

you look at active managers, the are holding tsmc as their top holding.hey can add on top of their current weighting. also, tsmc is around base percent to 10% of weighting in many benchmarks. it sounds a bit unfair. tsmc has been putting our technical hurdle for how much upset it can go in the near term. haidi: the hong kong stock gauge may be adding health care and electronics names in its quarterly review. what are the expectations? charlotte: there has been a lot of interest to find out what the stocks are that might be added to the hong kong benchmark index. at the moment, the top candidates we are hearing from analyst byd electronics, they handstand component maker the supplies to apple and qad. and health care names are others. this comes as broader efforts from the benchmark compile it to make it more diversified and more representative of the city's stock market. last time it didn't make any additions to the gauge, but this time, analysts don't expect any deletions from the benchmark. will find out the results after the market today and the change

>> i think there are two things to think about, the ability which the chairman of tsmc hinted at lasttember that they could render their factories in operable. what it seems to be is that asml has a kill switch up some kind which allows them to disable the extreme ultraviolet machines used in tsmc's chips and taiwan. even without such a capability, those supply chains that go into making these machines work, that go into making chips work are so complex and touch so many different countries, in the event of a chinese invasion of taiwan, if taiwan -- if china invades taiwan, all of their supplies that go into making chips, the silicon wafer's, the chemicals, the machines from japanese, south korea, american and dutch companies -- all of those stop. there will not be continuing to export machines that tsmc needs or the engineers to maintain those machines. without such a kill switch in these machines, the ability to take over those factories in the unlikely event of a chinese invasion of taiwan, would not be able to continue to use them as they are used now. haidi: does it make a huge i

we brought you the latest tsmc sales, a 60% jump in april driven by ai.continue with that ai theme because the ceo of arm is downplaying concerns over and ai spending slowdown. that was fueled by his lukewarm revenue forecast for the fiscal year. he told us what he is still confident in the chip designer's long-term growth. >> we are actually forecasting even higher growth this year, north of 20%, and we also signaled to the markets yesterday that in a 25, 26, 27, we see that growth continuing. we have incredible visibility to our business and we are very confident of this growth rate going forward. >> i want to focus in on the cell phone play, because that's been where your bread and butter has been in history. how are we looking from a smartphone perspective? is the market looking strong for you? we have had many a mixed message coming from china demand, for example. rene: overall, what we have seen in the smartphone market is quite a good growth rate for royalties. are version nine, which is now being used in many of the premium mobile phones, that dri

tsmc reporting sales jumped 60%.es near all-time highs. mandeep singh a bloomberg intelligence joins us now. difficult to get a clean read on this, and that applies to a lot of things including semis. you hear one thing, you hear something else from somebody else. what is the clear read on what is happening at the moment? mandeep: the monthly numbers seem to be accelerating. to my mind, tsmc is the best proxy for chip demand across different sectors. clearly they have told us ai would be about low teens of their revenue, which is a pull forward from there earlier forecast, but this suggests the auto and smartphone chip demand, which was weak until now, seemed to be bottoming out. otherwise they would not report this kind of a bump. apple guiding that the next quarter they would see growth, indicates there will be a faster upgrade. now we are seeing that in the tsmc monthly numbers. dani: i will try my hardest not to talk about the ipad ad again as much as i want to. how much of this is ipad demand? dav ives thinks th

tsmc is building three new plants producing ai processors.st advanced chipmakers when it comes to processor chips is building a vast facility in texas. so we are going to end up in five years time with a much more diversified landscape when it comes to manufacturing. including the chips that are critical for ai implications. katie: our thanks to chris miller, the author of chip war. who else do we have? david: tomorrow we have josh easterly and we will talk about private credit but also the big move in investing in sports. katie: this is bloomberg. ♪ >> let's look at shares, the stock of over 30% after reporting earnings that were better than feared. you also of executors outlining the plan to transition the company into a more diversified bank. the ceo took over leadership of the company at the beginning of april and needless to say has been an intense time but some needed good news today coming up almost 33%. you take a look at its performance year-to-date. it still down about 65% so still a lot of wood to chop. let's take a quick look at s

if you take tsmc revenue guide for the a.i.elated processes, they are saying this is going to double this year that is significant because this is a very conservative management team. tsmc has the most visibility of anyone on nvidia's revenue extreme streams because they see the orders first if you apply this and you factor in the 5% to 10% market share loss to amd, you get to a revenue growth rate of 100% for the year you feel the market is underappreciating this build out. competitors are finding it hard to catch up. >> you are saying nvidia is under valued >> yes >> thank you for your time and insight. i appreciate it. if you want more insight on the trading day ahead, go to cnbc pro at cnbc.com/pro. >>> time for the check of the top corporate stories with silvana henao at cnbc hq good morning >> good morning, frank let's start with apple issuing a rare apology for an advertisement promoting the ipad pro tablet after it was almost universally criticized on social media. ♪ ♪ ♪ >> the most powerful ipad ever is the thinnest. >

investors are warning that tsmc's stock surge they hit a regulatory roadblock. governed by restrictions on single starts cannot add more tsmc equity and the even have to sell after the outside gains. bnp paribas says european regulations which kept single -- to 10%. sources say software makers snowflake is in talks to acquire reka ai. tech giants are been rushing to acquire startups working in that field. that's got more on the outlook for ai with our next guest joining us from tokyo. crawford del prete, the president of idc. you are in japan so we can get to what you are seeing in a moment but i wanted to start off more big picture. we are seeing the global chip battle intensified. billion's of dollars are being poured in from the u.s., japan and even korea is putting funding into it. china, of course. where do you see the leader emerging in that competition for ai supremacy between the u.s., western powers and what is happening in china? crawford: thank you for having me. when you look at the overall ai semiconductor marketplace, what is interesting right now

what i can tell you is right now the united states buys 92% of its leading edge chips from tsmc. tsmc. >> that is because they are two generations ahead of anything we can build in the united states, correct? sec. raimondo: there are vastly ahead of anything we are doing in the united states. the announcement tsmc just made in arizona will be to build two nanometer and three nanometer stuff. >> it makes it essential for us to defend the south china sea and taiwan, not just one place. would you agree? sec. raimondo: i would agree. >> on the chips issue, we are finding chips from north korean drones being used by russia to attack ukraine have american ships in them, so what is bis doing to stop that flow? it appears they can use what we think are harmless commercial grade chips to use for legal purposes around the world at a time that very much looks like 1940. can we be doing more or are you doing all of you can and some just slip through? what do you think? sec. raimondo: a few things. the fact that they have to use chips from breast pumps and refrigerators, which is what they ar

and interesting reporting on asml and tsmc.sml is off by 1.5% as we see the extrusive reporting showing that an event that china invades taiwan, both tsmc and the chip equipment making company asml could have a kill switch. they can remotely disable their chipmaking machines. we hear about the importance of taiwan from nvidia's ceo. >> taiwan is at the epicenter of the world's technology supply chain. without taiwan, it would be very difficult for michael and i to do our jobs. it would be difficult for us to serve. the technology industry depends very heavily on taiwan. caroline: the ai juggernaut has spoken and he saying taiwan is really important as if we forgot. we join mike sheppard. this is extraordinary piece of reporting. companies having to ease u.s. government concerns here. mike: that is right. this is actually answering this reporting one of the fundamental question surrounding taiwan, one of -- one of the big what if speed three years, the u.s. government has warned that china has its eyes on taiwan and might try to

ultimately, tsmc moves, up 5%. another great month. april showing revenue is higher.ng ai demand, global smartphones bottoming out, seeing recovery in revenue growth. tesla off by 1.5%, whether or not it's the fact that we are getting tough talk from the u.s., maybe we will see increased tariffs on chinese ev's. could that hurt tesla? nvidia up 1.4%. nvidia earnings still to come. another key stock, akamai, currently falling. came in less than what the market wanted to see. the content distribution seems to be the weakness. security revenue was good. computer revenue was good. the delivery revenue is under pressure. is that what is hitting the forecast? >> exactly right. internet traffic increases but not in a straight line. we have the largest content delivery network. when there are dips, we feel it. we diversified beyond delivery. two thirds of revenue, security and compute. both businesses are strong. great growth. great potential. over time, more revenue from security and compute, the dips in internet traffic, we won't see as noticeably. caroline: diversification

it is green on the screen, in particular for tsm bc -- tsmc who exclusively makes into videos ship and it could help -- who exclusively makes chips for nvidia. something we also see is south korea unveiling a 19 billion dollars support package for the chip sector. more than double what was proposed a couple weeks ago and it goes to show how important it is that sector is for this industrial revolution and it comes at a time where governments from the u.s. to china are bringing in more monetary support, financial support to attract or support the industry. samsung was flat when news came out and is getting a fair bit of gains now. >> that story is not going away. let's get market reaction to the news out of korea and nvidia with the director of asia active research who joins us this morning. lorraine, when you look at the forecast from nvidia does justify the rally we have seen in chips so far? >> yes but not just nvidia or the ai space. inventory levels have normalized and we expect a smart phone replacement cycle to add a further boost in 2025 so we expect margins to start expanding a

that's why it's so exciting for me when i'm out in arizona where i recently was with tsmc and intel.s of thousands of manufacturing jobs are brought about by the chips act. i hear the constant need for retraining which is why i created the good jobs challenge when i became secretary. people want to work. put yourself in the shoes of a 42-year-old woman who has been a retail clerk her whole career. or a waitress and got put out of work in covid. she can't retire. she wants to work. but she needs skills. she needs digital skills or a.i. skills or something. a desperate need for retraining. a desperate need to invest in infrastructure that will attract companies. you see that in pittston or wherever. sometimes you might have a vacant mine or manufacturing facility. they have to be resuscitated to new uses. and that takes money. e.d.a. spends money on all of that. we are investing in infrastructure, job training. the recompete program. recompete is about helping the most distressed communities. those are the ones that are the hardest and take a lot of investment, but it's worth it. mr. c

some of its rivals like tsmc and samsung need the money more than they do.y can afford to be selective. intel, because of the situation it has put itself into over the last five years, really needs the cash from any source it can get, if it is to fulfill what it is trying to do. caroline: let's talking about fulfilling it, globally, what countries and companies are trying to do. do we get to an extent where we have too much supply? ian: this is the concern. at the moment, the concern is focused on what is called legacy chips, the older types of production. that type of thing that intel, tsmc, samsung are building in the u.s., there is not enough supply of that production right now. not so much worried about that but some of the simpler kinds of stuff, in view of the amount of production being put in place in china, that is something that people are focused on, worried about. ed: ai is a big driver of this. the headline, global chip battle intensifies with the $81 billion subsidy surge. within that there are two different stories. there is a long term capacit

the conversation we had earlier, tsmc has committed to build three fabs, including nanometer fabs in the united states. samsung is included. leading edge, plus research and development, plus packaging. my kron would be at scale -- micron would be at scale. i now i have to go fast. it's more important i get it right. the metric i look at is will we be making 20% of the world's leading edge chips in the united states by 2030? and i say yes. i think we can. with respect to the smaller companies it's a challenge, but we are trying. we have just put out an application for smaller companies to apply. i can get you that information. get the word out to your constituents. it's harder for little companies to interact with government. we have a specific application. we are going to do another one, a $50 million research and development that only small companies can apply to. with respect to nepa, look, it's tough. i have a whole team that is helping companies work through the nepa issues. we are getting there, but it's a challenge. davis-bacon's in the law. davis-bacon is in the statute. we wi

since the company lost the ability to print processors in taiwan at the factories of market leader tsmcs true is not known for certain, but it is known that in the first quarter of this year the chinese chipmaker suddenly took second place in the world in terms of revenue among pure contract manufacturers, that is, not counting intel and samsung, since those are the same chips. and are being developed, in addition to the processor in the new phone , the display and its protective coating, the drive, and a dozen and a half sensors, sensors and controllers are indicated as huawei's own, however, you need to understand that this is import substitution - it's not like some kind of miracles of overcoming, here we are under sanctions and did, in fact, even before the sanctions, huawei had been investing tens of billions of dollars in research and development work for years, received thousands... card, limited design, access to a sim card with a wow tariff, a month of communication for free payment sticker. children's savings card - an adult approach. are your items faded after washing? use we

they sell to tsmc, they sell to everybody. note russian the semiconductor industry as a whole is exiting the downturn, bumping the bottom maybe, but really accelerating. semi cap equipment is a good place to be in addition to a company like nvidia in terms of having exposure to a lot of chip growth. separate from that, we like idiosyncratic names like apollo management, the private equity private company's private. you have covered that for a long time on this show. apollo is well positioned and the stock is trading at 12 to 13 times earnings and we think that looks really interesting here sonali: sonali:. we will be talking more about those private markets later in the show. that was fl putnam chief market strategist ellen hayes and. thank you for going through these markets, public and private, for us. investors are concert -- cautiously upping bets or rate cuts this year as early as september. since they are in no hurry, they are flocking back to fixed income assets and guggenheim partners says that with the help of their f

markets, tech in the driving seat, a key theme pushing markets higher led by tsmc and the taiwanese chipmakerwe had earnings overnight. tencent good, alibaba not so good. we will not learn the full impact until tomorrow's trading. when we are trying to discern what the impact of those sanctions announced by the u.s. yesterday will be for asian markets. we seen some of that showing up on a chinese manufacturing company, not huge moves and the sentiment seems to be while these numbers, the impact is small, midmorning we had news on the property, the idea local governments could buy back inventory, adding support as we headed into lunchtime, giving markets a lift. they had been lower, weighing on the complex. signs of coming back into the afternoon. everything else was positive. a two-year high feeding into the record. tom: bloomberg's editor for asian markets on key factors driving the region. thank you indeed. we look ahead indeed to inflation data indeed. jerome powell speaking in europe saying the central bank must wait for evidence inflation is cooling before cutting rates ahead of the cpi

applied materials makes the machines that makes the chips, like tsmc. it beat estimates but the upper range given by the street, it fell short. where are we at in chip demand? through the proxy of the companies that by the machines. caroline: is this a bellwether? maybe not autos or connected devices but all things ai still driving us. what about china exposure? we can go broadly across the sector with joanne. this is a chip equipment company but what are you seeing in terms of where we are right now? >> better than expected results but their guidance was soft. in this kind of market, that doesn't go over well. they indicated continued demand from and markets except for china. with u.s. trade policy trying to crackdown on exports that would enable china to have its own leading edge chip business, applied materials is in the crosshairs. no surprise. that side will fall sharply. global demand for equipment because of global demand for chips is still going to be robust for many years. ed: monday, i'm going to speak with jensen wong and michael dell and bil

taiwan semi conductor and tsmc rising to the highest on record.k is a supplier for nvidia, highest since the year 2000. all eyes on nvidia. tom: avril with the check on asian markets, thank you. wall street betting on a quarterly report from nvidia, a record yesterday with gains of 6/10 of 1%. evidence they can maintain explosive growth. let's bring in matt from bloomberg intelligence for the importance of nvidia. what are you focused on? >> another beat from nvidia. he numbers about revenue, so they got 24 billion in revenue and they will report 240% growth, huge expansion. market is between 24 and 25. all eyes will be on quarter to, the street is positioned close to 27 billion in revenue, so that will be a key number this quarter. historically they have withheld because the business grew so quickly it's hard to estimate. the number if it is not the consensus number, the option spread could be skewed so people are expecting them to stay better. tom: ubs pointing out last year they need to consensus by 20%. matthew: gets tougher because people are

now refer to as friendshoring, of building its own capacity for semiconductor in effect, for example tsmc a research and development hub in yokohama, so i think south korea and japan have already begun it investment in ensuring especially on the semi conductor side but also beginning to think about radical minerals, other kinds of supply. i suspect that will be very much in the midst of the conversation. the trilateral summit will be the question about access to minerals only available from china, but i think you have seen the diversification already started. the chickpeas is that redundancy is key and it may not need to be manufactured alone in the u.s. market, but i think all three countries, united states, japan, and south korea feel bringing manufacturing base closer to home and under national control, i think they are persuaded that is the right strategy going forward. china could offer all kinds of incentives, but i do not think you are going to see japan and south korea really move away from the get investments they have already begun to make. haidi: taiwan at the epicenter of the

tsmc, the world's biggest foundry. it is all here.om: stephen engle, thank you very much, in taipei. a check on the commodities rally. the tech space and we will be speaking to the ryanair cfo. this is bloomberg. ♪ tom: bhp, the world's biggest mining company, has until wednesday to make a firm offer for rival anglo american. or walk away from that potential deal. musk more with martin richie. topline, what are we watching for in terms of how this bid could evolve? is bhp likely to come back with more to take over anglo before the deadline? >> the deadline of 5 p.m. london time on wednesday. we have had this big mining drama the past few weeks with bhp ruling out two informal bids, which have been knocked back by anglo. anglo then setting out its own proposals to radically restructure his company. bhp now decide whether it's going to make a renewed bid. as we understand, there has been, as of the weekend, when we published an article overviewing what was going to do, it had not made a decision yet. it has to weigh whether it can get e

tsmc makes all nvidia's chips so there is an obvious readacross. that particular stock is the largest component of the msci itaewon index, about over 40% of the index. so that is part of the reason why taiwan is the number one performing market in asia this year, up 19%. it's a very clear readacross there, that is number one. number two, in addition to tech, hardware and communications services which has a lot of tech component in it, utilities are the second-best performing sector in asia this year. another way to play ai is in the power and energy component, the linkage being that the data servers require a tremendous amount of energy, so there is a spillover effect from ai into those sectors. the third area, we have baskets on various parts of the ai spectrum, both hardware and semiconductors, and those continue to do well. that is one of the areas we are recommending in our strategy for some time now and those are the three linkages i would highlight. haidi: and obviously some of those teams play very well into the fact that you are still const

at asia chip stocks, and the ones benefiting from nvidia's stellar scorecard as we saw the likes of tsmc and sk hynix bucking the trend where most of asian stocks are treading water or in negative territory. these are the ones in green. really feeling what we got from nvidia. tom: avril hong, thank you very much indeed. staying on the story and getting more analysis, the chipmaker at the center of the ai boom surging in late trading after smashing expectations and delivering a bullish sales forecast. the ceo further stoked excitement by talking about the dawning of a new era. >> the next industrial revolution has begun. countries and companies are partnering with nvidia to shift the $1 trillion installed base of traditional data centers to accelerated computing and to build a new type of data center, ai factories, to produce a new economy, artificial intelligence. tom: let's bring in matt bloxham from bloomberg intelligence. any other ceo who described their sector at the next industrial revolution would be looked at as concern that was hyperbole, but the numbers suggest you have to take

important, and kind of distinguishing between these two businesses is the capital intensive nature of tsmc to me, it makes it a less attractive business than arm, right? arm is the blueprint maker and as such, it is much lower capital intensiveness. and they have such high levels of market share. so i think between these two, that's the more compelling case right now. >> and of course, we're all waiting for nvidia that's really the thing. >> waiting for nvidia. but it is interesting, you know, we keep waiting for, it and as soon as it comes up with the quarter, it will be irrelevant what's the next quarter and the trajectory of the growth and supply/demand dynamic is, there still overwhelming demand, and so i mean is it expensive? yes, it is but i do really believe that we are, as we talked about two days ago, cambrian -- >> pre-cambrian. >> it is hard to not look at being in the period with the fastest expansion. >> i have been thinking about, early on, i was looking at trading around nvidia and interesting things to do with options, but it was interesting, listening to druckenmiller, inc

there's no timeline are yet, but they're reportedly working with tsmc on this design, and it could bele is successful. they've been behind in the a.i. race, but the chip space is going to be hard to crack with nvidia, big tech get anything there there. today, hike you said, they're having that let loose event at 10 a.m. a.i. announcements likely won't come until june. stuart: ah, because they keep asking for innovation from apple. maybe they won't get it today -- kelly: it's a flashy product. stuart: that would be nice. palantir. now, i know that they reported a robust a.i. demand. why is the stock down 11%? kelly: it's all about guidance. so palantir gave weaker than expected guidance for their second quarter and full year. the company has been benefiting from the a. i. craze especially in the defense sector. they're facing headwinds for their sales though in cure. so when it comes to earn, guy dance is key. investors want to know where your money's going -- can. stuart: you've got to wait for the call. kelly: stock move. [laughter] stuart: some companies reported before the bell tod

you know, we work very closely with tsmc and samsung which have big with u.s -- [inaudible] but we alsoounced a partnership with intel, believe it or not, strange bedflexor a few months back. -- bedfellows. we're going to be building arm-i based chips at intel fabs in oregon and arizona. so it might have been a little bit weird a few years ago to think arm and intel working together on silicon, but we're very excited about that, and i think you'll see a lot of arm-based chips made in america. liz: we'll be watching for that. rene haas of arm, thank you very much. see you next time. >>> major developments coming out of the middle east at this hour. concern and fury in both israel and the united states after president biden warned he will cut off weapons to israel if it moves forward with a full scale assaulten on the gaza town of rafah. up next, a live report on the potential fallout that could hurt both president biden and israel. the stocks of defense companies that sell their weaponry to israel, they're not getting hurt at the moment. general dynamics up three-quarters of a percent, r

. >> if china were to invade today and own or brake companies like tsmc, it would literally shutdownif you think covid was a bad deal, this would put us in a world of hurt. i think this is why the american people would see why defending taiwan and this need in this hour of peril so important. >> reporter: and this was chairman mccaul making the case it's a worthy investment to provide the support to taiwan as a level of deterrence against china. when you think about semiconductors, almost everything, your phone, your car. the oven in your kitchen. these are all a vital part of day-to-day lives and if that that industry was interrupted, it could cripple the economy. >> ryan nobles, great interview, thank you for that. let's look at these two sides he's laid out. one is that the u.s. saying look, our support, on the other hand, you have a country that is holding the key to as he just pointing outside, to just about every modern product we use. who has the upper hand here? >> let's start by saying good job to the congress. by the way, coming on the heels of the ukraine aid package which

and will continue to do so for the next foreseeable time and overnight we had a scoop about asml and tsmcing that they can disable all of their manufacturing remotely if china were to invade taiwan. how important are these geopolitical conversations to these technology companies right now? mandeep: i mean when i look at nvidia right now, the biggest risk going into the quarter is the fact china revenue again completely go away. it's the same risk for apple. they seem to be maneuvering it well that and these companies are dependent on china for revenue, and to an extent, on the supply chains. apple still has 90% of the assembly being done in that region. nvidia doesn't have that kind of fixture on the assembly side but it still relies on some parts of that region, so the geopolitical conflicts are creating the tensions into these companies seem to be maneuvering it well. at least so far. jonathan: this is about a kill switch, they can kill production but productions don't come from somewhere. where is that supply going to come from? mandeep: we know that they are looking into other parts o

stands alongside similar preliminary agreements with other leading companies like global foundries, tsmcy mark some of the largest investments ever announced in your semiconductor manufacturer. best of all, because of the proposed target chips investments in these companies, we anticipate that america will produce roughly 20% of the world's leading edge chips by the end of the decade. by investing in chips manufacturing writer in america, where providing new economic opportunity to american workers and their communities, bolstering america's technological leadership, and showing up our national security, rebuilding our infrastructure. this is president biden's invest in america agenda in action. we're committed to continuing this work, complement the efforts of so many others right here in this room, and working with all of you across the country to build a stronger, more secure country. thank thank you so much. it's been good to be with you. [applause] >> please welcome building resides in america's electrical grid panel. -- resilience. ♪ ♪ ♪ ♪ ♪ >> good morning, everybody. i was a very

it also added tsmc in what he calls a i-driven catalyst.t enough. let's get a quick check on starbucks, down more than 12.5%. not enough lattes soul. sales fell for the first time since 2021. other companies that are retail-focused have also flagged more -- if this decline holds a will be the biggest drop her starbucks since 2020. the u.s. justice department has moved to reclassify cannabis as less risky. merrick garland proposed to reschedule the drug. it is currently classified with narcotics like heroin, but would be moved alongside other medical-related treatments. shares of cannabis companies surged. green thumb industries jumped 22%. that is your bloomberg brief. jonathan: it stinks. notice that, manhattan? every street corner stinks. lisa: we have had some building emails basically. if you are the person on this floor, you know, please have respect. jonathan: it is amazing how that has become a thing so quickly. up next, next stop, 5%. >> are we re-normalizing to pre-crisis financial levels or going back to the low interest rates pos

trying, for example, with semiconductors to avoid the obvious taiwan risk of being totally dependent on tsmcis if you really want to do that. >> roger, the first hot inflation number that we got in january, february. it's a outlier seasonal, inventories, blah, blah, blah, then got another and another -- were you surprised by what we saw? have you had this sort of, i guess, dovish view on inflation all along, and has your view been shaken? just wondering i'd like to believe you, that we're going to see you know, cooler numbers for inflation, but that means that we've had, like, a series of outliers, and when does that become, when do you say, i was wrong maybe inflation is headed back to 4%? >> first of all, i'm not certain, joe i could certainly be wrong. >> you said a higher number. >> step back a minute. this inflation was caused, at least in my view, entirely by the pandemic i think there's a lot of evidence on that and so it's taking -- >> that's open to discussion. >> it is we could debate that, but that's my own view. >> right. >> and -- it's taking a long time to work its way out of t

they made a big investment, bringing up samsung as a second foundry, beyond tsmc, there has been a fairown the road as well. i think they're going to focus on geographic diversification. this is not an issue that is going to go away from people's minds in terms of the dependence on taiwan. nvidia has done what they can to establish geographic diversification. >> yeah. hasn't held it back to this point. >> are they the best positioned of any of these companies in terms of geographic diversity if something like that were to happen >> well, you know, i wouldn't say they're the only ones who have done that diversification we have seen qualcomm, you know, using samsung at scale as well companies are aware of it. i think samsung does -- is a scale foundry that has done very well so, i think that alleviates some of the concern and we all like to see intel on the foundry side as well. >> for sure. joe, thank you very much, appreciate you helping us set this up for later. >> thank you >> when we come back, the combination of rising auto costs, limited new vehicle sales and slowing economy is pro

stands alongside similar preliminary agreements with other leading companies like global foundries, tsmcrk some of the largest investments ever announced in your semiconductor manufacturer. best of all, because of the proposed target chips investments in these companies, we anticipate that america will produce roughly 20% of the world's leading edge chips by the end of the decade. by investing in chips manufacturing writer in america, where providing new economic opportunity to american workers and their communities, bolstering america's technological leadership, and showing up our national security, rebuilding our infrastructure. this is president biden's invest in america agenda in action. we're committed to continuing this work, complement the efforts of so many others right here in this room, and working with all of you across the country to build a stronger, more secure country. thank thank you so much. it's been good to be with you. [applause] >> please welcome building resides in america's electrical grid panel. -- resilience. ♪ ♪ ♪ ♪ ♪ >> good morning, everybody. i was a very sup