BIG IDEA | ‘President Biden made the statement in a speech: “Buy American. Make it in America.” Why can't we make wind turbines in Pittsburgh, as well as in Beijing?’
Malcolm: ‘Let me go back to your earlier point about the US and the West, its being imperative that they win in these tech races and the other things that are involved in Made in China 2025.'
- ‘In the US especially, we have grown to doubt government's role in industry directly, and even sometimes indirectly. China is very active in promoting the Made in China 2025 initiative plus a lot more. Is there a role for the US government in developing our industries to win?'
Clyde: ‘Absolutely. De facto, our government has, and does play a very significant role in a lot of industries. Take the aviation industry, for example.'
- ‘Most people think of Boeing as a company that makes commercial airliners, but it makes a lot of jets for the military as well.'
- ‘None of the aviation countries in the world would be what they are had they not had a government help somewhere along the line.'
‘President Biden made the statement in a speech: “Buy America. Make it in America.” Why can't we make wind turbines in Pittsburgh, as well as in Beijing?'
- ‘Biden has got the right idea. We have companies in America that make turbines, and what Biden is saying is, "Okay. Let's have the companies and the government sit down together and ask ourselves, what is it that needs to be done to enable American turbine companies to compete with Chinese turbine companies, and whatever it is, let's do it." ’
- ‘The government can help in some ways with regulations or financing or whatever, but it can be done.'
‘We're already seeing that. The semiconductor industry in the Infrastructure Bill that Biden is proposing, I think the semiconductor industry is tagged for something like $50 billion to shore up the production of chips. This is a very important point.'
- ‘Many people imagine that the United States is the leader in semiconductors, and it is in the design of semiconductors.'
‘You may have read recently that Apple and Amazon are going to begin making their own chips.'
- ‘That is false.'
- ‘They will design their own chips, but their chips are going to actually be fabricated, made, produced by TSMC, Taiwan Semiconductor Manufacturing Company in Taiwan.'
‘And why is that? Because the US chip makers have fallen behind.'
- 'TSMC is today the leading chipmaker in the world. Number two is Samsung in Korea. Number three is Intel in America - Intel used to be the top guy.'
- ‘Out of this Biden infrastructure program, Intel will get maybe a bit of help in recovering its competitiveness in actually making semiconductor chips.'
'I love TSMC. I’ve known the founder, Morris Chang, for 40 years.'
- 'But to have the world's most important chip company in Taiwan right now, is that dangerous?'