this post was submitted on 13 Aug 2023
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The idea of "We just have to put our minds to it" is very much the foundation for American Exceptionalism. Anything we are good at, we are the best at. Anything we aren't, we don't care enough about.
As for: capitalism gonna capitalism. Maybe. But keep in mind that the Taiwanese government is the largest shareholder in TSMC. The concept of "the semiconductor shield" has increasingly become a core tenet of the defense against china. Because if it is in the entire world's best interest that Taiwan not be leveled in a violent assault: World governments are likely to step in.
And, again, the idea that the rest of the world can "catch up" to today is very much a reality. The idea that TSMC is going to sit and wait for everyone is very much not. They are going to pump money into research, development, iteration, etc. Again, barring fundamental shifts in technology, they are going to be dominant for probably decades.
What various nations' attempts at "catching up" is about is not overtaking TSMC. Part of it is about getting some of that nvidia money (which is becoming increasingly important as cars modernize). But mostly it is about preparing for being ostracized russia-style or TSMC being a giant crater. We won't be able to make top of the line computer chips, but we might be able to keep some of our weaponry running.
It's only American exceptionalism if it's put in terms of americans. As I specifically stated I think any country can do this. There's nothing special about Taiwan in this instance other than it already exists there. It used to exist in the US and Russia as well. It will again. Taiwan thinking it can, or that it's good to maintain a monopoly. Is silly.
And again if Taiwan thinks that that's going to save them. Which is a foolish thing to think. (China only wants them literally because they currently have a near Monopoly on manufacture. Diluting that Monopoly would actually make them safer) They're going to be sorely disappointed. If China moved tonight. Not a single military unit would be dispatched to attack internationally. The US wastes the most money of any country on military and military equipment. But they aren't going to deploy. China is threatening everyone around them with impunity. And the US/EU can't threaten much more than hollow product boycotts. Because they've all handed over their nuts on a platter to exploit near slave labor in Xi's authoritarian wonderland.
The best way to neuter Xi is for everyone to take back as much of China's manufacturing as possible. And not concentrate it in the hands of an authoritarian dictator for a few bucks extra.