Post-Coronavirus Reshuffle - Keeping Sensitive Technology Out of China - "Prepping For Military Struggle"

Ed.'s note: There is a major economic reshuffle going on related to China concerning China's B&RI as we see fallout taking place surrounding whatever happened in Wuhan, China with the coronavirus. What this might indicate with this US Navy guided-missile destroyer sailing through the Taiwan Strait, is not so much to protect Taiwan, but to close off technology transfers especially sensitive microprocessor technology from getting to China from Taiwan only 100 miles away. Last year December, 2019 it was reported an estimated 3,000 electric engineers who left Taiwan for Chinese manufacturers as China works to manufacturer all the chips it needs by 2025. With the rollout of 5G and 5G smart phones, Taiwan's TSMC (the world's biggest contract chip maker) had huge gains of 54%.

Way back in 2003, there were accusations China stole TSMC's trade secrets. China's Huawei is dependent on TSMC for chips in its smart phones and technology. Don't underestimate Taiwan's strength in microprocessor manufacturing. It leads the world. The shipment value of Taiwanese semiconductors was estimated to reach $82.2 billion in 2018. This in addition to TSMC investing $3 billion to build a TSMC chip manufacturing facility in China in 2016. TSMC fabs in China are generally 2 generations behind, due to laws in Taiwan to prevent China from access to the technology. As an example: TSMC just started 16nm in China in 2019 when Taiwan already had 7nm.

China's Foundry Biz Takes Big Leap Forward

Taiwan Semiconductor Manufacturing And Micron In The Face Of Huawei Threats And Headwinds - Part 1 TSMC

If there is a military confrontation it is over microprocessor technology like from Taiwan's giant  TSCM (Taiwan Semiconductor) firm. The Pentagon is dependent on chips manufactured in Taiwan, so the US Navy guided-missile destroyer there means protecting technology out of Taiwan for America's military machine. To break this dependence on TSMC-manufactured chips from Taiwan, the US has been pressuring TSMC to manufacture chips in the US. This is what China covets with these military threats against Taiwan. What China is also protecting by these military threats, are its huge investments in technology in Taiwan.

Chinese state-owned (state-owned means the CCP) chip maker Tsinghua Unigroup Ltd. for example, was invested in 2015 for a $600 million stake in Taiwan's Powertech Technology Inc. Powertech Technology manufactures integrated circuit and semiconductor components. Will China catch up to the US and Taiwan in chip design and manufacturing? In October, 2019 it was announced TSMC investing USD $19.5 billion in a 3nm fab in Taiwan. This would indicate Taiwan is keeping the best stuff in Taiwan. See our post for 8 April 2020 outlining where these fractures are appearing:

Tech Is Victory Or Death - The House Has Been Burned Down and the Thief is Heading Back to Pan Eurasia - We Are In For Nasty Weather

Taiwan Battles WHO and China Over Coronavirus - AMD and TSMC Going Strong
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Source: Yahoo News

U.S. Navy destroyer transits Taiwan Strait on same day as Chinese drills

Reuters • April 11, 2020

TAIPEI (Reuters) - A U.S. Navy guided-missile destroyer sailed through the sensitive Taiwan Strait on Friday, the U.S. and Taiwan militaries said, the same day that Chinese fighter jets drilled in waters close to the democratically-ruled island.

China, which considers Taiwan its own, has been angered by the Trump administration's stepped-up support for the island, such as more arms sales, U.S. patrols near it and a visit to Washington by Vice President-elect William Lai in February.

Taiwan and China are also embroiled in a bitter spat about the former's lack of membership of the World Health Organization during the coronavirus outbreak, because of objections by Beijing, which views it as merely a Chinese province.

The U.S. Pacific Fleet named the ship that sailed through the Taiwan Strait as the Arleigh Burke-class USS Barry.

"Barry is forward-deployed to the U.S. 7th Fleet area of operations in support of security and stability in the Indo-Pacific region," it said in a brief statement on its Facebook page on Saturday.

Taiwan's defense ministry said its armed forces monitored the ship as it sailed south through the waterway. It described the U.S. ship as being on an "ordinary mission".

Also on Friday, Taiwan said Chinese H-6 bombers and J-11 fighters again carried out drills above waters to its southwest. Taiwan's air force kept close watch, the ministry added.

Taiwan has repeatedly complained of China continuing to apply military pressure during the virus crisis.

Taiwan is China's most sensitive territorial and diplomatic issue and Beijing has never ruled out the use of force to bring the island under its control. The narrow Taiwan Strait that separates the island from China is a frequent source of tension.

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Source: NF

China Announces 'Preparation for Military Struggle' with Taiwan

By Nusfeed | April 10, 2020

The Chinese People's Liberation Army (PLA) held military drills featuring warplanes near Taiwan on Friday as part of "military struggle preparations against the island," Chinese state media reported on Friday.

Global Times, a Communist Party propaganda newspaper, said multiple PLA warplanes – including H-6 bombers, KJ-500 early warning aircraft, and J-11 fighter jets – conducted a far-sea, long-range drill above southwestern waters near the island of Taiwan.

The PLA warplanes were seen flying over waters southwest of Taiwan and then entering the skies over the Bashi Channel – located between Taiwan and the Philippines – before returning to base via the same route, Taiwan's Ministry of National Defense (MND) confirmed on Friday. Taiwan's armed forces are closely monitoring the country's surrounding waters and airspace, Taiwanese military spokesman Shih Shun-wen said.

Friday's drill marks the sixth time this year that PLA aircraft have been recorded operating near Taiwan's airspace, according to Taiwan's MND.

On April 2, China's PLA reported that the Chinese military command responsible for patrols around Taiwan staged a long-endurance, early-warning exercise in March. The drill was intended to simulate quickly countering enemy planes during wartime, a PLA officer said at the time.

In early February, China organized army-navy war games near Taiwan and surrounded the country with warplanes. Following days of drills, China's PLA Eastern Theatre Command said its forces had carried out "air-ground assault and fire support drills to further refine and test their multi-service joint combat capabilities."

Please go to NF to read the entire article.