> The question of why the US has the right or power to tell TSMC, a Taiwanese company, who it is allowed to do business often comes up in these discussions.
The US doesn't have to justify what it asks for, it does that as a convenience for Taiwanese politicians. Why it has the power is a historical question irrelevant to whether it has the power. Why it has the right? Rights are implemented with power.
Proving that the US is wrong according to some moral or rational standard is just an intellectual exercise.
I don't think history is necessary. With Apple alone being around 25% of their income [1], them losing a fraction of the money from the US would almost certainly be worse than losing whomever the US doesn't like at the moment.
Hmm, what if TSMC just told the US, "ok, go screw yourself, I'll sell my services to anyone but you and your companies? Yes, TSMC would lose a lot. But arguably the damage to the US would be a lot more.
But of course ultimately the US has guns and TSMC doesn't, and the US wouldn't accept this type of outcome.
This would be a great way to go out of business. Every single one of their suppliers, and customers, would need to make the same choice simultaneously.
As a simple example, how long would TSMC survive without new machines and support from ASML?
TSMC, the largest Taiwanese corporation, says "screw the US, we'd rather trade with the PRC". What exactly do you think happens to TSMC in that situation?
Are you familiar with what the Taiwanese government is, how it came to be, and the current stance of the PRC towards that government?
This has more to do with ASML supplying the machines that TSMC uses to produce the chips. Without ASML, TSMC would not be leading the world in semiconductor manufacture, they wouldn't even be worth talking about without ASML's machines. And the US gets to say who can have those machines from ASML. China can't have them, due to export limitations. All the US has to do is say no more export to Taiwan and TSMC is fucked.
|In 1997, ASML began studying a shift to using extreme ultraviolet and in 1999 joined a consortium, including Intel and two other U.S. chipmakers, in order to exploit fundamental research conducted by the US Department of Energy. Because the CRADA it operates under is funded by the US taxpayer, licensing must be approved by Congress.
|In June 2023, the Netherlands' Institute for Human Rights ruled that despite the country's constitution prohibiting discrimination based on nationality, ASML was allowed to reject job applications from residents of countries subject to sanctions under the U.S. Export Administration Regulations (such as Cuba, Iran, North Korea, and Syria) in order to remain compliant with U.S. law.[46][47][48]
|In January 2024, the Dutch government placed further restrictions on the shipment of some advanced chip-making equipment to China.[49]On 6 September 2024, the Dutch government tightened export controls on certain ASML chipmaking equipment, aligning its policy with U.S. restrictions to limit China’s access to advanced technology amid safety and geopolitical concerns.[50]
The US doesn't have to justify what it asks for, it does that as a convenience for Taiwanese politicians. Why it has the power is a historical question irrelevant to whether it has the power. Why it has the right? Rights are implemented with power.
Proving that the US is wrong according to some moral or rational standard is just an intellectual exercise.