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EU and Taiwan negotiate to build TSMC chip factory

If yesterday we were talking about the increasingly intense rapprochement between the United States and the EU where Intel wanted to play matchmaker, today we wake up with another very interesting news, because the two blocks are negotiating separately because they have the approval of Taiwan, the third player in the discord. Why so much interest on the part of the two to conclude agreements with the Asian country? Well, that’s really interesting, because chip hegemony is in play.

And it is just that, a macabre game where everyone wants to be friends, but no one wants to give an inch, it’s a game of geopolitics and not so much of gear, chips or money, but of supremacy and of obedience, where everyone is beginning to understand that China is the great rival.

EU and Taiwan are close to reaching an agreement for the TSMC chip factory

Inauguration of TSMC Fab 18 5nm

And it is who has already concluded several agreements with Intel in Germany, Italy, France and Spain of all kinds now it’s TSMC’s turn. The EU is courting Taiwan with which it has moved from deputy minister-level talks to ministerial level, where both sides have publicly stated that relations have made significant progress.

It’s not done, however, because TSMC’s FAB for edge chips is only part of what it wants to achieve. The agreement will go further and both parties will have to give in to their claims, since they want to reach an agreement of research cooperation and also improve the semiconductor supply chain.

As if that were not enough, improvements are discussed in the sector of agricultural and offshore wind products, so there’s a lot more context than you might think at first glance. These talks have a very interesting setting, since they are taking place a few days after the United States has completed its exchange of views and projects with the Taiwanese ministry, but why such a rush to conclude agreements?

The excuse is the semiconductors and the investment in FAB, the reality…

TSMC-FAB

The reality is that China and Taiwan are about to go to war, where the former are trying to intimidate the latter and are waiting for the moment when the island can no longer defend itself and neither the United States nor the EU will not be able to react. Ukraine is in sight, but the two blocs have rushed to dialogue with Taiwan and strike deals that, under the table, have military and security overtones.

Supply chain, FABs and chip preference for US and Europe over China and Russia have a double standard which surely involves the NATO Protection undeclared, but secret, under the pretext of having mutual interests and trade agreements which, in the event of war, could be interpreted as an attack on the technological stability of the West.

Therefore, for Europe to have a top tier TSMC FAB, as the US has already agreed 12 billion with his Asian partner is only a matter of time. The problem is that there is a lack of skilled workers and TSMC needs to train them from Taiwan and export them for at least 6 months so that the cost and time can be balanced, because in Europe and the United States there is no ‘there is not enough trained personnel and low cost not to draw on investment. This is being negotiated, because although the United States made the deal first, they did not consider this detail and Taiwan is making a move so that the West does not run out of chips, or FAB to create them.

As we can see, the scenario is complex, but what is certain is that the West wants Taiwan on its side and that the latter do not want to see China even face to face, when the blockade against Russia is already total. Pure geopolitics that uses the semiconductors as an argument to attack and defend instead of missiles and bombs.

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