Covid Created Collateral China Crisis [_link] #Asml #China #Covid #Euv #Huawei #Kla #RobertMaire #Tsmc

— SemiWiki.com (@DanielNenni) May 3, 2020

Covid Created Collateral China Crisis

China relationship damage will far outlast direct Covid19 logistics impact. Economic damage could be huge but trade damage could be larger with more specific impact on chips.

A long build up to a China trade nuclear winter, the "drum-beat of war"
When we started talking about a potential chip trade embargo with China 3 years ago we were roundly criticized and laughed at....not so any more as the specter of a full blown, tech led, trade war with China seems to get larger by the day.

Several months ago the heat got turned up again. On Monday the Commerce department issued three new rules that will effectively pave the way for technology exports to China and exports to companies doing business with China (read that as TSMC) to be more easily restricted.

• Elimination of License Exception
• Expansion of controls for Military Use
• Modification of License Exception

This feels an awful lot like tanks are massing on the border and warships are moving into position. The direction and intention of moves made over the last several months are very, very clear. It seems with all this planning and build up that implementation is all but inevitable.