Post by Dave on Oct 22, 2020 2:21:54 GMT -8
Good morning. Our pre-market is red this morning at -$.053 at this moment.
The U.S.-China Conflict Over Chips Is About to Get Uglier
Apple Lobbies for Lower Taxes to Boost U.S. Chip Production
The U.S.-China Conflict Over Chips Is About to Get Uglier
TSMC has become “turf that all geopolitical players want to secure,” founder Morris Chang said in November.Just a couple of kilometers from the new training center, cranes dot a massive construction site where TSMC is building “fabs” in which it will manufacture the most advanced chips in the world — chips that are no longer available to China’s Huawei Technologies due to U.S. export controls. Huawei used to be TSMC’s second-largest customer, accounting for 14% of sales; those shipments stopped in September.
Apple Lobbies for Lower Taxes to Boost U.S. Chip Production
(Bloomberg) -- Apple Inc. has been lobbying the U.S. government on tax breaks to support domestic chip production, suggesting the iPhone maker is keen to move more of its supply chain to the U.S.
In second- and third-quarter disclosure reports, the company said it lobbied officials from the Treasury Department, Congress and the White House on tax topics including “issues related to tax credits for domestic semiconductor production.”
Since releasing its first custom processor in 2010, chips have become a major performance differentiator for Apple. The company designs some of these components in house, but outsources production to Taiwan Semiconductor Manufacturing Co. Many other parts for Apple devices are made in China. That has exposed the company to import tariffs and other risks from a trade war between the U.S. and China. Taiwan, where TSMC operates, has also become an increasing focus of geopolitical tension between China and the U.S.
Apple’s recent lobbying coincides with a push by the company and its partners to move some production away from China and even back to the U.S. in a few cases. There’s also a broader effort by the U.S. semiconductor industry to get government support for increased domestic production.
In second- and third-quarter disclosure reports, the company said it lobbied officials from the Treasury Department, Congress and the White House on tax topics including “issues related to tax credits for domestic semiconductor production.”
Since releasing its first custom processor in 2010, chips have become a major performance differentiator for Apple. The company designs some of these components in house, but outsources production to Taiwan Semiconductor Manufacturing Co. Many other parts for Apple devices are made in China. That has exposed the company to import tariffs and other risks from a trade war between the U.S. and China. Taiwan, where TSMC operates, has also become an increasing focus of geopolitical tension between China and the U.S.
Apple’s recent lobbying coincides with a push by the company and its partners to move some production away from China and even back to the U.S. in a few cases. There’s also a broader effort by the U.S. semiconductor industry to get government support for increased domestic production.