Connect with us

EXTRAS

14 countries create the first reserve of emergency chips

The US moves a new piece on the board and contrary to what was expected, 13 countries follow. In the Indo-Pacific Economic Framework or IPEF, led by the Biden administration, the country of stars and stripes has formalized the rumors that claimed an alliance off the coast of all of China. The agreement reached by the 14 countries is not only close to the country that until now has been the world’s factory, but it is a full-fledged check in the face of China’s refusal to manufacture in the volume that is needed. Therefore, it will be Indo-Pacific Emergency Chip Stockpile.

Oddly enough, China no longer wants to sell at the rate the world needs. Their economy is collapsing, CO2 emissions have to drop at a rate never seen before if they don’t want to face billions of dollars in fines, they have a real estate crisis at the level of the one we suffered in the West in 2008 and to top it off, water and energy are in opposite directions in terms of supply. For this reason, Xi Jinping, who until now had had an open policy towards the world, is closing the doors, and for this reason, the countries around him move and indirectly exclude Europe.

The Emergency Chip Reserve, an agreement forged at the beginning of the year

IPEF

With the utmost discretion and with the greatest push, 14 countries that make up the Indo-Pacific and its surroundings have said enough is enough to the manipulation techniques of the supply chain that Xi Jinping’s country has by the hand. Nothing less than Japan, Australia, India, South Korea, Brunei, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, Fiji, and USA. have struck a deal to gain mutual access to chip stocks in a supply chain that will share inventory and risk data, as well as cooperate on alternative sources for the chips.

The agreement is not limited to semiconductors in general, but also includes PPE, rare earths and storage batteries in what seems to be a larger-scale deal that we still don’t have news about, but that seems to also include the automotive and high-performance FABs.

The game here is to avoid an international trade framework, or a trade agreement, which would mean that it would have to be continuously reviewed by the US Congress and the rest of the countries, while in this way the decisions will be made much faster without so much politics and restrictions involved. With this in mind, the agreement between the 14 is based on four basic pillars that each country can select independently according to its needs:

  • General trade.
  • Green and clean CO2 energy.
  • Anti-corruption systems.
  • Chip supply chain.

Of the 14 countriesonly two adopt all four pillars at the same time: the US and Japan.

But what about Taiwan in this Emergency Chip Stockpile?

USA-vs-China-chips

With TSMC holding more than 50% of the world’s total chip share, it was logical to think that the island of Taiwan would be included in this IPEF agreement… But no, the 14 have refused to include Taiwan on US orders.

The motives are unclear as no formal explanations have been given, but analysts say this has been a move to allay member states’ fears so that no one antagonizes China. At the same time that they exclude it, they need it, it is the paradox and at the same time the check to the Asian country in a single movement.

Why would the Biden administration do this? The reason is as simple as it is worrying: chip supply from Taiwan is not assured to no extent. The US has already seen how the Chinese navy blockaded the island and how TSMC could not send chips for almost a week, totally blocking imports and exports by force using the military.

For this reason also the plan of the CHIPS for America Act, where TSMC will build a state-of-the-art FAB taking a part of those 52,000 million dollars that the United States government puts on the table. In fact, and as reported by the National Security Commission of that country in matters of Artificial Intelligence at the request of the government, the US dependency on imports of semiconductors from Taiwan creates a strategic vulnerability for its economy and military. Well, IPEF is coming to solve this and surely Taiwan will enter at some point when tensions are lowered.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Advertisement

More Posts

News7 mins ago

Bungie is already working on a patch to fix the Baron quest in Destiny 2

While we are immersed in the Treasure Season in Destiny 2 (and we look forward to Eclipse in February of...

News28 mins ago

Marvel Officially Unveils Ultron’s God Form

The villain is combined with Vibranium and Asgardian magic. The characters of Marvel have been characterized throughout their lives by...

News46 mins ago

Check out PSVR 2 for PS5 in the trailer – “This will give the VR scene a big boost!”

Sony presented PSVR 2 in detail in a trailer. Here are the first impressions of VR games and a few...

Games53 mins ago

If you play alone and you like action RPGs, you have to take a look at Stray Blade

For lovers of the most classic action RPG, I have good news, because Stray Blade arrives to fill a gap...

Games1 hour ago

The 10 best Instant Gaming deals on PC in the first weekend of October

Offered by Instant Gaming We enter the month of octobera crucial month in this wonderful world of video games that...

News1 hour ago

Ed Sheeran joins Pokemon with Celestial, a song that will appear in Pokemon Scarlet and Purple

For the 25th anniversary of Pokemon there were a few world-renowned artists who composed songs dedicated to the popular saga....

Games1 hour ago

Adidas and Yu-Gi-Oh! present their sneakers and they are what your feet need

Surely a pair of Yu-Gi-Oh! they give you luck in your next game. Adidas, like other brands of sneakers, is...

EXTRAS2 hours ago

from the most expensive to the cheapest there are 550 euros

There are less than two weeks left for the RTX 4090 to hit the market and we have already known...

News2 hours ago

Cloud9 will close its VALORANT team with Zellsis

Photo via Riot Games The future of Jordan Montemurro «Zellsis» would continue to be in the elite of the North...

News2 hours ago

Controversy in Overwatch 2: Overwatch League skins cost almost twice as much as before

With less than a week to go before the official launch of Overwatch 2 (which, we remember, will completely replace...

Advertisement