This Chip story doing the rounds

[17 Year Veteran]

25 minutes ago, shlomo said:

• Intel (INTC) was down 56%;
• Micron (MU) was down 50%;
• Nvidia (NVDA) was down 69% (its products having been directly targeted by the Biden administration); and
• AMD (AMD) (also directly targeted) was down 67%.

Among US semiconductor equipment companies:

• Applied Materials (AMAT) was down 57%;
• Lam Research (LRCX) was down 59%; and
• KLA (KLAC) was down 45%.

Outside the United States, ASML (ASML) of the Netherlands was down 59% from 52-week high to 52-week low. Japanese equipment makers Tokyo Electron (TYO 8035) and Screen Holdings (TYO 7735) were down 50% and 44%, respectively.

Japanese semiconductor makers Renesas (TYO 5723) and Rohm (TYO 6963) were down only 27% and 28%, but they focus on automotive and industrial semiconductors, not the artificial intelligence and high-performance computing devices that obsess the Biden administration. Their 52-week lows were last March.

SMIC (HKG 0981), China’s top IC foundry, was down 40% while TSMC (TPE 2330) was down 43% – a relatively strong performance under the circumstances.

Well, I've just bought forward my phone upgrades; they say Apple will be buggered by all this. Then again, I just bought a few kilos of silver so perhaps I'm going full-HPC-tin-foil-hat.

It will be a 6 month supply of freeze dried food next: I have 60,000 litres of freshwater already sorted in the backyard pool,  8kW of solar with 40kWh storage, a stash d of meds / dressings and 40 dozen bottles of nice red in the bunker so I am all set.

Cheers!

Aussie"prepper"boy

[longgone]

I'm surprised how many gamers exist on here. 😂

[shlomo]

3 hours ago, longgone said:

I'm surprised how many gamers exist on here. 😂

I am old I used to play Pac-Man in arcades in my youth 

[Confusion of VIs]

On 17/10/2022 at 08:08, Glenn said:

The west should be trying to build bridges with countries like Russia and China. Not keep poking them with a pointy stick.

Germany tried that for over 20yrs with Russia. Didn't end well.

[Sour Mash]

34 minutes ago, Confusion of VIs said:

Germany tried that for over 20yrs with Russia. Didn't end well.

 

They got huge quantities of cheap gas which they could pay for in Euros ... worked very well for their industry and economy  until their masters in Washington ordered them to jump into a conflict that had nothing to do with them.

 

Now their economy is collapsing around them, their people could be going cold and hungry in the dark in the middle of Winter and their american 'allies' blew up a major piece of their energy infrastructure to keep them on the Ukraine Train.

 

 

[Confusion of VIs]

39 minutes ago, Sour Mash said:

 

They got huge quantities of cheap gas which they could pay for in Euros ... worked very well for their industry and economy  until their masters in Washington ordered them to jump into a conflict that had nothing to do with them.

 

Now their economy is collapsing around them, their people could be going cold and hungry in the dark in the middle of Winter and their american 'allies' blew up a major piece of their energy infrastructure to keep them on the Ukraine Train.

 

 

So you think cheap gas is worth turning a blind eye to a genocidal war in Europe?

If the Germans really would have capitulated once it turned a bit chilly, it's a good thing someone blew up that pipeline.

[shlomo]

1 hour ago, Sour Mash said:

 

They got huge quantities of cheap gas which they could pay for in Euros ... 

 

 

And they printed the Euros themselves so the money was not going to Uncle Sam

[bearishonhouses]

On 17/10/2022 at 01:47, shlomo said:

A lot of Chinese chip designers trained in the US and have dual US and Chinese citizenship and this will affect them

My understanding is that China does not allow dual citizenship. (https://www.immigrationhelp.org/learning-center/is-u-s-dual-citizenship-possible)

[Maghull Mike]

 

[shlomo]

On 10/19/2022 at 4:06 PM, bearishonhouses said:

My understanding is that China does not allow dual citizenship. (https://www.immigrationhelp.org/learning-center/is-u-s-dual-citizenship-possible)

You are right, I was mixing up my countries, a lot of Chinese have given up Chinese citizenship and taken US, they will fall foul of this law, will the US allow them to give up US citizenship easily as they a world changing asset

[Lord D'arcy Pew]

3 minutes ago, shlomo said:

You are right, I was mixing up my countries, a lot of Chinese have given up Chinese citizenship and taken US, they will fall foul of this law, will the US allow them to give up US citizenship easily as they a world changing asset

U.S citizen have to pay tax to Uncle Sam no matter where they live in the world. I doubt they would give up this tax base.

[shlomo]

14 minutes ago, Lord D'arcy Pew said:

U.S citizen have to pay tax to Uncle Sam no matter where they live in the world. I doubt they would give up this tax base.

I think the loss of intellectual copyright of people with this knowledge base is more of a concern than money 

My contact at a Chinese Telecommunications company says China may soon be stopping the flow of rare earths as a reaction to the stop of Chips 

[17 Year Veteran]

36 minutes ago, shlomo said:

I think the loss of intellectual copyright of people with this knowledge base is more of a concern than money 

My contact at a Chinese Telecommunications company says China may soon be stopping the flow of rare earths as a reaction to the stop of Chips 

Really hard to stop access to or halt the flow of commodities.

[shlomo]

2 minutes ago, 17 Year Veteran said:

Really hard to stop access to or halt the flow of commodities.

Chips are made from rare earths, and rare earth comes mostly from China, so let’s see what happens, and lots of the chip factories are also in China, this is a tough one

[17 Year Veteran]

4 minutes ago, shlomo said:

Chips are made from rare earths, and rare earth comes mostly from China, so let’s see what happens, and lots of the chip factories are also in China, this is a tough one

This is true - but as we've seen, it's much easier to control tech than raw materials. Hard to tell where a lump of dysprosium has originated.

It would be more of a price issue than a complete shut down issue I would have thought, which is what China is facing. 

[athom]

54 minutes ago, shlomo said:

I think the loss of intellectual copyright of people with this knowledge base is more of a concern than money 

My contact at a Chinese Telecommunications company says China may soon be stopping the flow of rare earths as a reaction to the stop of Chips 

Literally everything happening these days is pushing prices of everything up. We are only seeing the beginning of inflation if this sort of thing keeps on which it seems it will. IRs are going to be impossible to keep down. shit is hitting the fan. Interesting that houses being already built are one of the few things where the price can fall. It can't be utilities or food or fuel or anything else much, those prices will rise. The only place I can think of where this can be absorbed is house prices. This is surely the big one. 

[bearishonhouses]

7 hours ago, Lord D'arcy Pew said:

U.S citizen have to pay tax to Uncle Sam no matter where they live in the world. I doubt they would give up this tax base.

I am fairly sure you can give up US citizenship fairly easily - but you have to pay taxes on wealth as if you realized all assets at current values - thereby crystallizing any unrealized capital gains. (Wasn't it partly this issue that got Johnson into trouble some years ago? I seem to recall he had to pay US tax on the capital gain of a house in N London before he could renounce the US citizenship he had acquired at birth. If he had not, he would be eligible to become US president, I guess. There's a thought!)

For most US citizens living outside the US, the US tax liability on earnings from employment is zero, I think, because foreign employment income while not resident in the US is not subject to US tax (Foreign Earned Income Exclusion - https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion) so giving up US citizenship would not affect taxes on earned income. And also, the IRS would not lose revenue if folks did give up their citizenship.

Edited October 23, 2022 by bearishonhouses

[29929BlackTuesday]

6 hours ago, shlomo said:

Chips are made from rare earths, and rare earth comes mostly from China, so let’s see what happens, and lots of the chip factories are also in China, this is a tough one

And from the Donbas region I've heard. Apparently (this is true, I've heard) they hired Welsh miners to show them how to mine it safely.

Incidentally, it was a team of Irish roofers who did the Dome of the Rock. Also no joke.

[shlomo]

At least 1,400 US-based ethnic Chinese scientists switched their affiliation last year from American to Chinese institutions, according to a joint report by academics from Harvard, Princeton and the Massachusetts Institute of Technology.

The high number illustrates a “chilling effect” resulting from US government policies deterring research and academic activity by scientists of Chinese descent and suggests American research could suffer, said the Asian American Scholar Forum, an advocacy group that published the findings.

 

“We see an increase in that trend,” said Yu Xie, a sociology professor at Princeton University as he presented the report at a webinar on Monday. He added that the US had been “losing talent to China for a while and particularly after the China Initiative”.

[shlomo]

“Now we are not just trying to build up ‘US-free’ manufacturing lines but also de-Americanise the teams,” said the executive.

https://www.ft.com/content/97147102-a02c-48df-b3a0-28c77c4c298f

[FallingAwake]

Clearly this is all in preparation for when China invades Taiwan, so the US won't be caught with its pants down, like Germany were with the Russian gas situation.

There Is Only One UK. Scotland May Never Leave The UK.

Oh wait, sorry, I got my countries wrong. It's China and Taiwan. It's amazing how nuts the Chinese policy would sound, if we did the same thing here.

[Gigantic Purple Slug]

On 23/10/2022 at 11:34, shlomo said:

Chips are made from rare earths, and rare earth comes mostly from China, so let’s see what happens, and lots of the chip factories are also in China, this is a tough one

Not much rare earth used in ICs. Some in display tech I believe.

Magnets though is a different story. Used in hard drives, electric cars, wind turbines etc.

Funny that the supply of rare earths for wind turbines could become a lot more expensive just as we are starting to get more wind power.

Let's hope they hurry up with the HTS wind turbine development.

[shlomo]

1 minute ago, Gigantic Purple Slug said:

Not much rare earth used in ICs. Some in display tech I believe.

Magnets though is a different story. Used in hard drives, electric cars, wind turbines etc.

Funny that the supply of rare earths for wind turbines could become a lot more expensive just as we are starting to get more wind power.

Let's hope they hurry up with the HTS wind turbine development.

I have been told the Chinese media is putting this out about cutting off the supply of rare earths as pay back for the chip issue, as you say it might not be important if you know how chips are made it worked on me, but i know nothing about tech

[zugzwang]

7 minutes ago, FallingAwake said:

Clearly this is all in preparation for when China invades Taiwan, so the US won't be caught with its pants down, like Germany were with the Russian gas situation.

There Is Only One UK. Scotland May Never Leave The UK.

Oh wait, sorry, I got my countries wrong. It's China and Taiwan. It's amazing how nuts the Chinese policy would sound, if we did the same thing here.

Prior to 1973 both the PRC and the ROC claimed to be the legitimate govt of the Chinese mainland and Taiwan. The PRC won the argument decisively. As a consequence, whatever nonsense is published to the contrary in the msm (free and fair, my arse!), the UK does not recognise Taiwan as independent state and never will.

 

[zugzwang]

On 18/10/2022 at 17:19, Confusion of VIs said:

So you think cheap gas is worth turning a blind eye to a genocidal war in Europe?

If the Germans really would have capitulated once it turned a bit chilly, it's a good thing someone blew up that pipeline.

Less competition from Germany is a good thing for the Amerikkka fascists. 

It's a civil war provoked and sponsored by the CIA.

That pipeline can be repaired.