{"id":21894,"date":"2023-10-08T23:56:00","date_gmt":"2023-10-08T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=21894"},"modified":"2025-12-12T09:50:08","modified_gmt":"2025-12-12T01:50:08","slug":"companies-destroyed-by-us","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/","title":{"rendered":"The evil power, How did Japan, Alstom, Toshiba, Via, HTC and Taiwan&#8217;s panel industry collapse ?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Disgraceful_record\" >Disgraceful record<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Notable_countries_cases\" >Notable countries cases<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Soviet_Union\" >Soviet Union<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Japan\" >Japan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Taiwan\" >Taiwan<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Famous_corporate_cases_from_the_past\" >Famous corporate cases from the past<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Toshiba\" >Toshiba<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Alstom\" >Alstom<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#VIA_Technologies\" >VIA Technologies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Taiwans_panel_industry\" >Taiwan\u2019s panel industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#HTC\" >HTC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Famous_corporate_cases_currently_underway\" >Famous corporate cases currently underway<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Huawei\" >Huawei<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#SMIC\" >SMIC<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#TikTok\" >TikTok<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#TSMC\" >TSMC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Closing_words\" >Closing words<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disgraceful_record\"><\/span>Disgraceful record <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The power basically does not allow any country in the world to lead it. It only allows power to set fires, but does not allow others to light lamps. The record of the power in this regard is really poor. Here are a few well-known cases to awaken everyone&#8217;s memory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notable_countries_cases\"><\/span>Notable countries cases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Soviet_Union\"><\/span>Soviet Union<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This needs no further explanation. After the collapse of the Soviet Union, the United States has since become the world&#8217;s only super power, dominating the world for more than thirty years to this day.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Japan\"><\/span>Japan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the 1980s, Japan was the world&#8217;s leader in the semiconductor industry and beat American companies to the point where they couldn&#8217;t hold their heads up. Later, Japan was forced to sign the famous Japan-U.S. Semiconductor Agreement, forcing Japan to reduce its semiconductor market share in the United States. Since then, Japan&#8217;s semiconductor industry has been in decline and has been in decline ever since.<\/p>\n\n\n\n<p>Japan was forced to sign the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Plaza_Accord\" target=\"_blank\" rel=\"noreferrer noopener\">Plaza Accord<\/a> and paid a heavy price. The national economy fell into stagnation for decades and has not recovered to this day.<\/p>\n\n\n\n<p>Please see my other post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/01\/japan-is-already-a-country-of-mediocrity-not-as-advanced-as-you-think\/\" target=\"_blank\" rel=\"noreferrer noopener\">Japan is already a country of mediocrity, not as advanced as you think<\/a>&#8221; for this part, as well as my explanation in my first book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;.<\/p>\n\n\n\n<p>In order to suppress Japan&#8217;s semiconductor industry, the United States also supported South Korea and TSMC as a plan to replace Japan. Lest Japan\u2019s semiconductor industry resurgence that day and threaten the survival of U.S. industries again.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taiwan\"><\/span>Taiwan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unexpectedly, the situation has changed. Nearly forty years later, Taiwan&#8217;s semiconductor manufacturing industry has monopolized global chip manufacturing, causing the United States to begin to be alert to the threat posed by TSMC. Then we turned back to help Japan build advanced wafer foundries. For more details, please see my posts of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/10\/02\/rapidus-tsmcs-rival\/\">Rapidus will be TSMC&#8217;s strongest rival in the future<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/02\/tsmc-moat-competitiveness\/\">165 billions investment proved TSMC moat and competitiveness is fragile<\/a>&#8221; for detail.<\/p>\n\n\n\n<p>Many people in Taiwan secretly rejoice that the United States&#8217; suppression of Huawei is helping Taiwan. But I would like to remind people who hold this kind of Ah Q idea and self-righteousness to wake up from the spiritual law of self-victory. The three examples in the next section of the United States\u2019 suppression of Taiwan\u2019s electronics industry will serve as a wake-up call to you, I believe.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Famous_corporate_cases_from_the_past\"><\/span>Famous corporate cases from the past<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Toshiba\"><\/span>Toshiba<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 1987, Toshiba sold equipment to the Soviet Union. The United States took advantage of this and imposed a series of sanctions on Toshiba.<\/p>\n\n\n\n<p>In March 1987, it was revealed that Toshiba Machinery, a subsidiary of Japan&#8217;s Toshiba Group, had illegally exported multiple CNC multi-axis milling machines to the Soviet Union. The United States used this as a reason to put strong pressure on the Japanese government and severely punished Toshiba Machinery and Toshiba Group. <\/p>\n\n\n\n<p>Investigation reports at that time showed that Toshiba Machinery, located in Numazu City, Shizuoka Prefecture, Japan, was a large machinery manufacturer controlled by Toshiba Group, and its turnover accounted for about 10% of Toshiba Group&#8217;s. From December 1982 to 1984, Toshiba Machinery exported a total of eight milling machines with advanced CNC devices and related software to the Soviet Technical Machinery Import Company. <\/p>\n\n\n\n<p>Toshiba Machine, knowing that exports of high-performance machinery and equipment to communist countries (socialist countries) required state review and approval, took a deceitful approach and disguised these precision CNC machine tools as ordinary machine tools to apply for approval from the Ministry of International Trade and Industry (now the Ministry of Economy and Trade). Ministry of Industry and Commerce) and assembled overseas for delivery to the Soviet Union. This move not only violated Japan&#8217;s Foreign Exchange and Foreign Trade Law, but also violated the Agreement on the Export Control Committee of the Communist Bloc, which was drawn up mainly by the United States and to which Japan also joined.<\/p>\n\n\n\n<p>In the 1996 Fortune Global 500 list, Toshiba ranked 32nd with revenue of US$53 billion, ranking ahead of Sony, Honda, and Nestl\u00e9. However, Toshiba gradually lost its market position in the early 2000s, and this year, Toshiba has fallen off the 2023 Fortune 500 list.<\/p>\n\n\n\n<p>The most direct reason is Toshiba&#8217;s failure in nuclear power and semiconductor businesses. In addition, Toshiba&#8217;s decline is also related to financial fraud. Toshiba, which was in poor operating condition, embarked on the road of financial fraud in order to maintain prosperity on its books. On September 7, 2015, Toshiba informed the public that in the past seven years, it had falsely exaggerated its earnings by 224.8 billion yen (approximately US$1.9 billion) higher than its actual earnings. This amount was at the beginning of the investigation into the scandal. More than four times the estimated amount.<\/p>\n\n\n\n<p>Toshiba is the pride of the Japanese, but this year it was delisted from the Japanese stock market and privatized.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Alstom\"><\/span>Alstom<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Alstom was a technological giant in France at the time. Alstom was responsible for the manufacturing, maintenance and updating of all steam turbine generators for the 58 nuclear reactors in France. It produced 75% of France&#8217;s power equipment and even supplied the Charles de Gaulle in France. Aircraft carriers provide propulsion turbines. In addition, Alstom is also extensively involved in the public transport industry.<\/p>\n\n\n\n<p>Note: Nuclear energy accounts for the vast majority of France&#8217;s electricity, with statistics in 2021 of 68%.<\/p>\n\n\n\n<p>Alstom is the brightest pearl in French industry. In its glory days, Alstom achieved it, ranking first in the world in hydropower equipment, first in the world in conventional nuclear power plants, first in the world in environmental control systems, and first in ultra-high-speed trains and high-speed trains. In terms of energy, we provide 15% of the world&#8217;s total installed capacity of equipment with a total of 460 megawatts, ranking second in the world. Alstom and the American giant General Electric (ticker: GE) have fierce competition around the world.<\/p>\n\n\n\n<p>On April 14, 2013, at JFK International Airport in the United States, Alton International Sales Vice President Pierucci was arrested by the FBI as soon as he got off the plane. Alstom, a business giant that once spanned the global power energy and rail transportation industries, was not only fined a huge US$772 million by the US Department of Justice. The core business was also &#8220;forced&#8221; to be acquired by its main competitor General Electric of the United States. As a result, the United States gained partial control of most nuclear power plants in France.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"VIA_Technologies\"><\/span>VIA Technologies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>VIA Technologies was once the world&#8217;s largest independent PC motherboard &#8220;chipset&#8221; design company, producing central processing units, chipsets, and graphics processors. In 2000, VIA&#8217;s north and south bridge chipsets challenged Intel and successfully captured half of the global market share, becoming the king of Taiwan&#8217;s stock market at the time.<\/p>\n\n\n\n<p>Of course, the United States could no longer sit still, and Intel began to file a lawsuit against VIA Technologies. In July 2007, VIA Technologies was unable to obtain a new generation of Intel licenses and had to start downsizing its operating departments and scale, and began to decline.<\/p>\n\n\n\n<p>In 2008, the U.S. Department of Justice found that VIA assisted the mainland government in opening a backdoor to monitor Falun Gong, and filed a lawsuit, imposed fines and penalties; the mainland never admitted it, but VIA executives pleaded guilty. As a result, the market was occupied by Intel and talent was lost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taiwans_panel_industry\"><\/span>Taiwan\u2019s panel industry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2006, AUO, South Korea&#8217;s Samsung, and Japan&#8217;s Sharp competed for the world&#8217;s number one spot in the panel industry. At the end of 2006, the U.S. Department of Justice conducted a large-scale investigation into eight Asian LCD panel manufacturers for allegedly jointly manipulating prices and violating the U.S. Antitrust Law. They were investigated in the name of antitrust by the United States.<\/p>\n\n\n\n<p>The following are important events from that year:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2006\/12, the U.S. Department of Justice investigated eight major panel manufacturers for violating antitrust laws from 2001 to 2006.<\/li>\n\n\n\n<li>In 2008\/11, Sharp, CPT, and LG Display agreed to plead guilty, and three executives including former CPT chairman Zhenhong Lin were subsequently sentenced. At the end of 2008, three senior executives of CPT reached a plea agreement with the United States and have served nine months in prison in the United States.<\/li>\n\n\n\n<li>In 2009\/12, Chimei agreed to a plea bargain and paid a fine of US$220 million, with its senior managers serving prison terms.<\/li>\n\n\n\n<li>In 2010, Chimei Electric general manager He Zhaoyang went to the United States and served 14 months in prison.<\/li>\n\n\n\n<li>In 2010\/6, the U.S. Department of Justice accused AUO of violating antitrust laws and participating in a pricing agreement that sought US$500 million in illegal benefits. AUO Vice Chairman Xuanbin Chen, former General Manager Laizhu Chen, Director Xiong Hui and others who went to the United States to assist in the investigation in 2010\/8 were restricted from leaving the country.<\/li>\n\n\n\n<li>In 2010\/12, the European Commission accused AUO and Chimei of violating antitrust laws and fined Chimei 300 million euros and AUO 116 million euros.<\/li>\n\n\n\n<li>On March 13, 2012, the jury decided that AUO was found guilty of violating antitrust laws, Xuanbin Chen and Xiong Hui were guilty, and Xuanbin Chen served 2,343 days in prison in the United States.<\/li>\n<\/ul>\n\n\n\n<p>After this incident, AUO ADR was delisted from the US market in 2019. Taiwan&#8217;s panel industry has since completely disappeared from the forefront of the world&#8217;s panel industry; now it can only rely on the production of backward panels and is struggling on the edge of losses. Even the company&#8217;s survival may be a problem, let alone the the right to speak in this industry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"HTC\"><\/span>HTC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>HTC&#8217;s status in smartphones back then was comparable to that of Apple today. However, in just a few years, HTC&#8217;s smartphones fell from the cloud to the earth. The fundamental reason is that the United States does not allow HTC to dominate the world&#8217;s mobile phone industry. It is as simple as that.<\/p>\n\n\n\n<p>The Americans just used a lot of reasons for violating intellectual property rights and countless lawsuits to knock down HTC, thereby suppressing HTC&#8217;s mobile phone development. Of course, HTC, a Taiwanese company, cannot withstand various pressures from the United States. It can only give up its former world No. 1 position and swallow all unfairness sadly.<\/p>\n\n\n\n<p>Now that HTC has sold its mobile phone and VR device business groups to Alphabet&#8217;s Google, I wonder what is left of HTC?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Famous_corporate_cases_currently_underway\"><\/span>Famous corporate cases currently underway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Huawei\"><\/span>Huawei<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This case is so important, please see my post of &#8220;<a href=\"http:\/\/&quot;&quot;&quot;&quot;how%20does%20the%20all-powerful%20huawei%20make%20money\/?%22\" target=\"_blank\" rel=\"noreferrer noopener\">How does the all-powerful Huawei make money?<\/a>&#8220;<\/p>\n\n\n\n<p>Not only has Huawei used its own domestically produced semiconductor supply chain in China to manufacture advanced chips for mobile phones and artificial intelligence without the help of TSMC, but it has also maintained its position as the world&#8217;s leading 5G base station equipment manufacturer despite the unwarranted suppression from the United States and Western whites, thanks to its better functions and lower prices. Now, autonomous driving and artificial intelligence are putting tremendous pressure on Tesla and Nvidia, forcing competitors to recognize Huawei as a respectable and threatening opponent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SMIC\"><\/span>SMIC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>SMIC is now more powerful than before the US embargo. Not only has it produced 7-nanometer chips without EUV, but its yield rate has exceeded 40%, which is beyond everyone&#8217;s expectations and reaches the threshold for making money. Furthermore, the company has set a goal to soon reach an average of more than 60% of the industry average using EUV.<\/p>\n\n\n\n<p>More importantly, at the beginning of 2024, SMIC has become the world&#8217;s third largest wafer foundry, and its market share has narrowed to about 5 to 6 percentage points closer to Samsung.<\/p>\n\n\n\n<p>Regarding SMIC, please refer to the relevant posts in my blog: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/08\/smic-after-us-embargo\/\">How is SMIC after US embargo?<\/a>&#8220;, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/30\/two-long-term-threats-to-tsmc\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two long-term threats to TSMC: US and SMIC<\/a>&#8220;, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/10\/mong-song-liang\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mong-Song Liang, the hero of SMIC\u2019s breakthrough in US blockade<\/a>&#8220;, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/28\/tsmc-process-roadmap\/\" target=\"_blank\" rel=\"noreferrer noopener\">Comparison of SMIC, Rapidus, TSMC, Intel, and Samsung\u2019s new process roadmaps for future chips<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/13\/yield-rate-comparison\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yield rate comparison of SMIC, Rapidus, TSMC, Samsung, Intel&#8217;s advanced process<\/a>&#8221; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TikTok\"><\/span>TikTok<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Regarding TikTok, please refer to my previous article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/30\/bytedance\/\">ByteDance, TikTok&#8217;s parent comapny, the world\u2019s most valuable unicorn<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-admin\/post.php?post=2818&amp;action=edit\"><\/a><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/18\/lets-talk-about-tiktok\/\">Let&#8217;s talk about TikTok<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TSMC\"><\/span>TSMC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TSMC (ticker: TSM) is forced to set up a wafer fab in the United States. No one with some industrial knowledge would think that TSMC\u2019s US wafer fab can make money. Please refer to my other two posts &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/28\/tsmc-serious-crises\/\">TSMC gets emerging&nbsp;and serious challenges<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/30\/tsmcs-profit-margin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is TSMC\u2019s profit margin much greater than competitors?<\/a>&#8221; for a detailed explanation. TSMC already has a wafer fab in the United States, but it has been unable to make money for a long time. If it could make money, TSMC would have gone long ago, and it would still need to be forced.<\/p>\n\n\n\n<p>The matter doesn&#8217;t stop there. After the wafers are produced, they still have to be shipped back to Taiwan for packaging. Americans are still worried. In August 2023, Taiwanese media reported that the governor of Arizona came to Taiwan in person to put pressure on TSMC, requiring TSMC to build a new semiconductor packaging plant in Arizona. Compared with wafer production, semiconductor packaging is an industry that relies more on manpower. There is no money to be made in wafer production. The packaging factory is located in the United States, which is a bottomless pit for burning money.<\/p>\n\n\n\n<p>It is recommended that you refer to my posts of:&#8221;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/02\/tsmc-moat-competitiveness\/\">165 billions investment proved TSMC moat and competitiveness is fragile<\/a>&#8220;, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/30\/two-long-term-threats-to-tsmc\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two long-term threats to TSMC: US and SMIC<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/28\/tsmc-serious-crises\/\">TSMC gets emerging&nbsp;and serious challenges<\/a>&#8221; for in-depth explanations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Closing_words\"><\/span>Closing words<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To paraphrase Friedrich Nietzsche, &#8220;What doesn&#8217;t kill me makes me stronger.&#8221; Both SMIC and Huawei have proven that there are ways to survive the unreasonable US embargo. These two companies have shown the world and the US that they are now even stronger than before the US embargo.<\/p>\n\n\n\n<p>Those who did not dare to say no to the United States and succumbed to the United States, including Japanese semiconductor industry, Alstom, Toshiba, HTC and Taiwan&#8217;s panel industry; without exception, all fell, and none survived.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"135\" height=\"102\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2023\/10\/army-1600x1200-1.jpg\" alt=\"Power\" class=\"wp-image-21895\"\/><figcaption class=\"wp-element-caption\">credit: armytimes.com<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/\">The evil US, How did Japan, Alstom, Toshiba, HTC and Taiwan&#8217;s panel industry collapse ?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/02\/tsmc-moat-competitiveness\/\">165 billions investment proved TSMC moat and competitiveness is fragile<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/30\/bytedance\/\">ByteDance, TikTok&#8217;s parent comapny, the world\u2019s most valuable unicorn<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"http:\/\/&quot;&quot;&quot;&quot;how%20does%20the%20all-powerful%20huawei%20make%20money\/?%22\" target=\"_blank\" rel=\"noreferrer noopener\">How does the all-powerful Huawei make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/01\/japan-is-already-a-country-of-mediocrity-not-as-advanced-as-you-think\/\" target=\"_blank\" rel=\"noreferrer noopener\">Japan is already a country of mediocrity, not as advanced as you think<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/08\/companies-destroyed-by-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">How did Japan, Alstom, Toshiba, Via, HTC and Taiwan&#8217;s panel industry collapse?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/14\/ge-spinoff\/\" target=\"_blank\" rel=\"noreferrer noopener\">How did three listed companies make money after GE spinoff? What are the prospects?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/10\/02\/rapidus-tsmcs-rival\/\">Rapidus will be TSMC&#8217;s strongest rival in the future<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/30\/two-long-term-threats-to-tsmc\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two long-term threats to TSMC: US and SMIC<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/28\/tsmc-serious-crises\/\">TSMC gets emerging&nbsp;and serious challenges<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/10\/mong-song-liang\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mong-Song Liang, the hero of SMIC\u2019s breakthrough in US blockade<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/12\/28\/morris-changs-controversial\/\">TSMC Morris Chang&#8217;s controversial words and deeds<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/06\/tsmc-originally-founded\/\">How was TSMC originally founded? Not by Morris Chang<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/30\/tsmcs-profit-margin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is TSMC\u2019s profit margin much greater than competitors?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-admin\/post.php?post=2818&amp;action=edit\"><\/a><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/18\/lets-talk-about-tiktok\/\">Let&#8217;s talk about TikTok <\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/15\/emerging-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why emerging market stock with high economic growth is not as rewarding as developed countries?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/11\/17\/global-stock-markets\/\">Global stock markets performance comparision over the past 30 years in a table<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/09\/04\/only-us-stocks-valuable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why are only US stocks the most valuable for long-term investment?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/20\/india-stock-tripled\/\" target=\"_blank\" rel=\"noreferrer noopener\">India stock tripled in three years to US$3.56 trillion, ranking fourth in the world<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/12\/india-stock-and-tech-giant\/\" target=\"_blank\" rel=\"noreferrer noopener\">Booming India stock market and the emerging Indian tech giants<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/?s=Indians+do+well+in+the+US%2C+India%E2%80%99s+weak+and+uncompetitive+industries\" target=\"_blank\" rel=\"noreferrer noopener\">Indians do well in the US, India\u2019s weak and uncompetitive industries<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/19\/japanese-stock-market\/\">What is the attraction of Japanese stock market?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/26\/south-koreas\/\" target=\"_blank\" rel=\"noreferrer noopener\">South Korea\u2019s emerging technology giant<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/04\/israeli-stock-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Israel stock market and tech giants<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Power contry basically does not allow any country in the world to lead it. It only allows US to set fires, but does not allow others to light lamps.<\/p>\n","protected":false},"author":1,"featured_media":21895,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59,193,189,739,24,548,23,738],"tags":[1104,1106,1105,369,575,1103,377,1345,376,546,1107,260],"class_list":["post-21894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-governance","category-accounting-fraud","category-antitrust","category-geopolitics","category-japan-stock-market","category-monopoly","category-taiwan-stock-market","category-trade-barriers","tag-auo","tag-chimei","tag-cpt","tag-ge","tag-htc","tag-lg","tag-samsung","tag-siuif","tag-smic","tag-tiktok","tag-toshiba","tag-tsm"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/21894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=21894"}],"version-history":[{"count":76,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/21894\/revisions"}],"predecessor-version":[{"id":40574,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/21894\/revisions\/40574"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/21895"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=21894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=21894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=21894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}