You know, an iphone sold in the us or europe might be designed in california and built in india using Semiconductors Made in taiwan from Raw Materials provided by china. So if any link in that supply chain breaks, it sets up big problems for the rest of the chain. And thats true for smartphones, as it is for pcs, and especially in Battery Production for those Electric Vehicles were buying more and more of. So what if one country decides to make it harderfor others to get hold of some of those critical Raw Materials . Well, thats what china announced just last month. Translation the Chinese Government implements i Export Controls on gallium and germanium related items in accordance with the law to ensure that they are used for legitimate purposes in order to safeguard National Security and better fulfil our international obligations. For quite some time now, the us side has been abusing Export Control measures to continuously strengthen its crackdown on chinas semiconductors and artific
that led to japan massively diversifying its supply chain. i mjust wondering, einar, is there a risk that china s restrictions here could backfire? well, i don t know that it s backfired. i mean, the same could be true, as i said, for chips and things like that. china is one third of the total chip market in the world of over $180 billion a year. and in essence, the us is saying we re going to do everything we possibly can to prevent you. so china will develop its own chips, they already have. they re not as efficient as the fab factories that are in taiwan and other places. but huawei recently came out with a process where they can manufacture seven nanometre chips, and they re going to continue on that basis. so what you re seeing here, and you re absolutely right, is a breakdown in this kind of thids globalisation supply chain that had been very efficient. how does china persuade international partners, even rivals, that it s