After Donald Trump's Recent Taiwan Statement Sent Shockwaves, Japan's PM Kishida Reveals New Bill To Boost AI And Chipmaking With Domestic Investment
Portfolio Pulse from Benzinga Neuro
Japan's Prime Minister Fumio Kishida announced a new bill to boost domestic investment in AI and semiconductor production. The bill aims to support research, development, and large-scale production of next-generation chips, particularly through Rapidus Corp. This move is part of Japan's strategy to triple its domestic semiconductor sales by 2030 and diversify its chip supply chain. The announcement comes amid global semiconductor rivalry, particularly between the U.S. and China. Major tech companies like Nvidia and Apple, which rely on TSMC for chips, could be impacted by these developments.
July 24, 2024 | 9:40 am
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TSMC shares declined by 8% following Donald Trump's statement suggesting Taiwan should compensate the U.S. for protection against China. This geopolitical tension adds uncertainty to TSMC's operations.
Trump's statement directly impacts TSMC due to its location in Taiwan, which is claimed by China. This geopolitical risk could affect TSMC's operations and investor confidence.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Apple, which also relies on TSMC for chips, might experience supply chain uncertainties due to geopolitical issues in Taiwan. Japan's efforts to enhance its semiconductor industry could provide alternative suppliers.
Apple's dependency on TSMC for chips means geopolitical tensions in Taiwan could disrupt its supply chain. Japan's new bill to boost domestic chip production could serve as a potential alternative.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
Nvidia, which relies heavily on TSMC for chips, could face supply chain disruptions due to geopolitical tensions involving Taiwan. Japan's new bill to boost domestic chip production may offer alternative sources.
Nvidia's reliance on TSMC for chips means any disruption in Taiwan could impact its supply chain. Japan's initiative to boost domestic chip production could mitigate some risks.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70