No more chip factories would surely change Beijing's mind about unification
www.theregister.com
The US Army War College showed the paper was its most popular of the year, when it revealed it topped a list of the most downloaded papers of 2021 from its quarterly academic journal Parameters.
The bright idea comes from two American scholars. Their reasoning goes:
Potential war with the US over Taiwan is no longer a deterrent for China as Beijing believes its military would dominate. Therefore, to make the island unappealing, it needs to be perceived as presenting an "unacceptable economic, political, and strategic costs upon Beijing." As it currently stands, Taiwan appears to be an enticing technology powerhouse ripe for absorption. However, destroying TSMC, an important supplier for China, would create a desperately unwanted major economic crisis on the mainland and make China chipless while it was also engaged in a war effort.
The open source idea actually originated with a guy I know named Steve Blank:
A version of this article appeared in War on the Rocks. Controlling advanced chip manufacturing in the 21st century may well prove to be like controlling the oil supply in the 20th. The coun…
steveblank.com
I, and a few others, have been inspired by Steve’s commentary and have been pushing the TSMC as strategic decisive/vital ground ever since in our circles of influence well prior to the Parameters article, but it’s great to see more coverage:
The US economy is dependent on US consumers. The CCP economy is dependent on US consumers and US investment...and imported energy and food. And US consumers consume products made in what country again? Now add to the fact that the other countries would also increase their goods to come up with...
militaryimages.net
militaryimages.net
As well as in non-published military innovation content for staff only at Marine Corps University.
My personal opinion is that TSMC represents a new form of strategic fence sitting, deterrence, and continuity of security guarantee.
Sabotaging or destroying 5nm(and soon 4/3nm) chip fabs in Taiwan is super easy.
It could be done non-kinetically with bags of voestalpine powder dispersed like fire suppressant to contaminate the fabs and ensure 0% wafer yield out to infinity. it could be done with thermite/dems charges to destroy irreplaceable and non-reproducible EU/US semicon mfg equipment, it could be done from great distance by the full suite of US PGMs.
A tangential effort would be the mid 6 to mid 7 figure pay cheques and immediate green card/citizenship TSMC staff with critical skills would earn on exfil from Taiwan to US, Japan, and EU.
China imports more Taiwanese silicon than energy or food, north of $350 billion a year.
10X that as immediate, ongoing, and unrecoverable economic damage that would represent a potentially existential economic depression for the CCP.
It is not hyperbole to say that TSMC advanced fabs produce legit magic the world relies on that is unable to be counterfeited of produced anywhere else in the world.
Taiwan sits on a razor sharp fence between China and the US led west.
TSMC is the only thing that allows that fence sitting to continue.
The only thing.
CCP dies without TSMC (so China will not invade conventionally/kinetically, but will still attempt other aggressive measures)
US loses to CCP forever if CCP seizes TSMC in functioning order (so US security guarantee for Taiwan is guaranteed)
It is mutual assured economic destruction.
3 years ago I was a semi finalist in a fictional scenario writing competition:
The Mad Scientist team executed its 2019 Science Fiction Writing Contest to glean insights about the future fight with a near-peer competitor in 2030. We received 77 submissions from both within and outside of the DoD. This story was one of our semi-finalists and features a futuristic look at...
smallwarsjournal.com
I wanted to write a scenario where the US lost, so I left out the TSMC silicon angle.
But what I focused on then, and remains relevant now, is that if enough domestic friction in China occurs, it will ultimately lead to external distraction, such as Taiwan.
Right now China will be focused on the upcoming Olympics and Digital Yuan rollout(a critical component of my scenario above) so they will not act against Taiwan and risk further global embarrassment prior to execution.
But the CCP will be painfully aware they have an extremely dangerous silicon vulnerability that they cannot fully mitigate for at least a decade, even with a Manhattan Project/B29 level of national effort.
So I suspect they will be working hard on new doctrine and strategy that fits beneath the threshold of war to get what they want, because Taiwan(and the US/EU by extension) have them by the silicon nuts.