Chip Wars?
China consumes 50% of the world’s semiconductors.
China buys 50% of the world’s chipmaking equipment.
China controls 50% to 80% of the key metals processing needed for chips.
In business, what normally happens when you piss off your single biggest customer?
More importantly, why would you piss them off? Will your countrymen be any better off?
By trying to choke off supplies to the biggest buyer, you inevitably create an oversupplied market that will destroy margins.
Massive investments in fabs need enormous buyers to be able to turn a profit. Otherwise the innovation wheel stops turning.
$NVIDIA Corp(NVDA)$
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