According to the Nihon Keizai Shimbun 24 report, the U.S. Biden administration will sign an executive order at the end of this month at the earliest to cooperate with Taiwan, Japan, South Korea, Australia and other allies to build a stable procurement system and create a “de-China” supply chain. Taiwan scholars see this as an attempt to create an alternative “NATO.
According to reports, President Joe Biden will sign an executive order calling for the development of a national strategy for the supply chain. The draft shows that in addition to semiconductors, supply chain strengthening measures will begin to be developed with a focus on pure electric vehicle (EV) batteries, rare earths and medical products.
According to the report, in the field of semiconductors, the United States is believed to cooperate with Taiwan, Japan and South Korea. And in the field of rare earths, cooperation with Asian countries and regions such as Australia, which has strong rare earths companies, will be put into perspective.
Lin Xiumin: The U.S. will create an alternative NATO to counter Chinese infiltration
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Lin Xiumin: “This is to unite other allies to fight and surround China. It looks like he signed this executive order is to reflect his election promises, sort of an alternative ‘NATO’, twenty years for the United States to rebuild a new supply chain.”
Lin Xiumin pointed out that in the past the U.S. could turn a blind eye and a blind eye, and after 20 years of Chinese influence penetrating all over the world, the U.S. is even less likely to sit back and watch. Regardless of which party is in power, it will not change the trend of rebuilding the supply chain, at best, the approach is just different.
U.S. Senate Democratic Leader Chuck Schumer (Chuck Schumer) 23 also asked members of Congress to add emergency funding for the recent Defense Policy Act plan to authorize the government to implement incentives for the semiconductor industry to promote U.S. semiconductor manufacturing and research.
Schumer said that the semiconductor manufacturing industry is the cover door in the U.S. economy and national security, the United States must change the status quo as soon as possible, can not rely on foreign industry, expect the bill can strengthen the U.S. semiconductor supply chain, so that the United States in AI, 5G and other areas to maintain competitiveness.
Taiwan semiconductor, Australia rare earth to invest in the United States
As early as last year, Taiwan Semiconductor Manufacturing Corporation (TSMC) announced a new plant in the United States, according to the investment content, TSMC will be set up in the local 5-nanometer process 12-inch wafer fab. TSMC’s U.S. plant is planned to start construction this year and mass production in 2024, with an estimated monthly capacity of 20,000 pieces.
However, according to The Japanese media “Nikkan Kogyo Shimbun” reported on the 23rd, TSMC faced challenges in setting up a factory in the United States, in addition to the construction costs are several times higher than originally expected, there are supply chain issues to be resolved, TSMC has dealings with a number of Japanese manufacturers, but a number of suppliers hesitate to move forward to the United States because of risk considerations. And TSMC responded on the 24th to emphasize that “TSMC’s planning to set up factories in the United States according to the progress.”
U.S. cooperation with allies in the supply chain is not limited to the semiconductor industry. Rare earths are used in a wide range of applications and are needed in everything from smartphones to jet fighters. Eighty percent of U.S. imports of rare earths come from China, and if China restricts exports, it will affect the relevant U.S. supply chain.
According to reports, as early as 2019, Australian Resources and North Australian Affairs Minister Matt Canavan has announced that Australia and the United States will jointly support key mineral and rare earth development programs. This means that the two countries will further cooperate in the market long held by China. The Australian Financial Review has recently revealed that Arafura Resources will bring in a batch of minerals from the Nolans Borey mine in the Northern Territory of Australia. “Arafura Resources will export a batch of neodymium-praseodymium rare earths mined from Nolans Bore in Northern Territory, Australia to a processing plant of USA Rare Earth in Colorado, USA, and sell them to other customers after they are made into rare earth oxide products locally.
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