DIGINEWS360 Economics India Z. Center Column

Supply Chains through China and TSMC, the Chip-maker:

TSMC: The foremost Tech Company of the World

Wednesday, Dec 7, 2022

MANAGEMENT of the 21st CENTURY: When the supply chains were disrupted during Covid 19, the world woke up to the full implications of what the North Americans and European businesses had done in their greed for larger profits, without the troubles of managing labour in democratic countries and with the luxury of cheap and non-unionized labor.

Please look at the video (Reference: https://www.bbc.com/news/world-asia-china-63725812 ) of the giant Foxconn factory in Zhengzhou, China, showing  

the way the police could be used to catch employees, who dare escape from a “factory”, where they were supposed to obey the orders to work for preparing products for the west’s markets during Christmas. 

It is a SHAME for the 21st century and it is bringing out graphically –

the failure of the GREAT IVY LEAGUE Management Schools and

the failure of every celebrated Manager.

Every CEO would love and

every manager, at the lowest level in a factory, would love

           the video for the EASY way control of labor, with the help of police.

Two cheers for China’s manufacturing system and the West’s management system for exploiting this manufacturing system in an autocratic country to the hilt.

and

A shame for us all of the 21st century and

A worry about a complete failure of the Management Schools to evolve theories of management, which can manage factories and labor in democratic societies well.

Covid 19: SPOKE in the WHEELS of the MANUFACTURING SYSTEM: The system was hit hard by CHIP SHORTAGE in the years 2021 and 2022. As an example it led to a shortfall of about 18mn of vehicles around the world. The semiconductor crisis cost the European automotive industry around 100 billion euros in 2021 and 2022.

Besides auto industries, nearly every industry uses IC Chips in an increasingly larger way. Thus, Apple and Sony have blamed bottlenecks in obtaining supplies of IC Chips for slowing production of iPhones and Playstation 5s.

Today the order-books of the contract chip manufacturers are over-flowing with orders, which they are finding it difficult to execute. Analysts expect that chips will continue to be in short supply at least till the end of 2022. If there should be a war in South China sea, it would lead to a catastrophic shortage of chips for all segments of industry.

Chip manufacturing is concentrated in Taiwan, South Korea and China (countries touching the South China sea.)  

When China threatened to annex Taiwan by force, the world realized that except USA, no one could stop China from doing what it wanted.

If the war should damage the infrastructure in Taiwan, supplies of IC chips may be interrupted.

If China should take over Taiwan, it would become the leading supplier of IC Chip and this monopoly might be used as a weapon against any other country, which does not enjoy the confidence of Chinese leaders.

Both President Biden and the European Commission has decided to invest tens of billions of dollars to boost production of chips in USA and Europe respectively. However setting up the plants and development and acquisition of the technologies takes years.

IMPORTANCE of TSMC: Advanced IC chips of 3 nm are manufactured only by TSMC. TSMC is engaged in research and development of 1nm IC chips.

TSMC is now investing 40 billion dollars to set up new foundaries in USA. It is also establishing one in Japan.

India has been trying to get a TSMC plant located in India. But no agreement has yet been reached on the issue.

If China takes over Taiwan, will Xi Jinping become the sole owner of the advanced technologies of TSMC?

(Reference: https://tinyurl.com/5k8nbhn7 )

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