yeah, not long ago, intel lead tsmc _ not? yeah, not long ago, intel lead tsmc and _ not? yeah, not long ago, intel lead tsmc and built _ not? yeah, not long ago, intel lead tsmc and built the - not? yeah, not long ago, intel lead tsmc and built the most. lead tsmc and built the most powerful and smallest chips, however, it has kind of lost that lead, and the bigger item that lead, and the bigger item thatis that lead, and the bigger item that is hard for the us, we have lost the engineering and the job the manufacturing at high scale and high volumes in the us, and that cost a lot. i will give you one example. they attempted to build a high and lcd plant in the state of wisconsin, and it moved to a low—end plant, and finally, and accessories plant, and finally it was scrapped just because costs were too high, and i'm not sure that the us government will have the facilities to process this too long after the sorters of covid—i9 are kind of lost some of the populism of the shouts of corporate welfare become loud again.— the shouts of corporate welfare become loud agai

on her visit, meeting the chairman of tsmc on hervisit, mark meeting the chairman of tsmc on her visit, mark louis. to give us your take on the semiconductor industry, we have learnt during the pandemic how critical it is, the lack of semiconductors has had on supply change whether it be in car factories or supply change whether it be in carfactories or smart factories. how car factories or smart factories. how healthy is it currently has it rebounded from the pandemic? we currently has it rebounded from the pandemic?— the pandemic? we think the ulobal the pandemic? we think the global chip _ the pandemic? we think the global chip shortage - the pandemic? we think the l global chip shortage situation has modestly through, by the easing of covid—19 lockdown measures that had previously impacted manufacturing facilities that is with the exception of china which sticks to its zero covid—19 tolerance policy and that improve supply, on the ongoing economic slowdown reducing impact, recently we heard memory vendor �*s revised their outlook for production plans in 2023 by 20%, in the

she is going to talk to tsmc. what does that really represent to you in terms of the wider context of the taiwanese semiconductor industry? >> i think it is amplifying the importance of the whole semiconductor supply chain to the u.s. and the global economy. we cannot emphasize more healthy taiwanese semiconductor industry is pretty critical to a lot of the u.s. tax. not even just tech but software, internet and even the carmakers. it controls like 60% and some of the high-end advanced technologies have dominated with about 90% plus of the market share. they have increased their investments in the u.s. in recent years. i think the time between the u.s. and taiwan on the semiconductor part, it underscores an importance of this and how the u.s. government could value the contribution. -- contribution to the u.s.. >> if china decides to do more, they can do other things which make life difficult. companies like tsmc, what does that do to an industry that has had a lot of supply chain issues but other supply chain iss

she might also have a meeting with tsmc, a very strategic dialogue. china's response has been announcing six different exclusion zones which will be put into place as of tomorrow and run through sunday at least. there will be military drills within those six exclusion zones. one of the more recent times back in 1995 in response to the first number chronically elected president going to the united states, china also have these exclusion zones which did disrupt shipping lanes and air travel, so that could put more pressure on supply chains. again, the analysts we have spoken to say that china short of any kind of direct military attack would be more likely to employ these gray zone tactics to further isolate taiwan, further isolate taiwan diplomatically and economically. so you can see a number of different measures they have taken to ban exports of natural soil, or sand. which is used in manufacturing. then they will stop buying citrus fruits as well as some fishing products. david: i mean, this map that they put out on where -- i am supposed to look a

she is reported to meet tsmc's high executives later today. that has not been confirmed. i think that is on everybody's top radar right now, tsmc is the semi -- largest semi conductor manufacturer in the world. any meeting like that would be something we want to keep tabs on. after that, nancy pelosi would also pay a visit to human rights activists. that is also yet to be confirmed. then she will leave taiwan early in the evening and had to soul -- head to seoul. francine: the fact that taiwan is so important and terms of chips, also shipping. the -- the way to calculate the ripple effect of the military drills on the supply chain? >> what was seen already is some of the lng shipments that come through that part of the world are taking a different route. the ships themselves are slowing down so they can change the route they are on. the way they are going, mostly from the south china sea up to customers in china and south korea and japan, obviously there's a lot of cargo shipments that come from manufacturing on the chinese because they go south toward europe. some going

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. tsmc is the most important chip producer here in taiwan and the most important chip producers around the world. you can see without computer chips here in taiwan or without tsmc, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. asi as i mentioned earlier, china says it is halting key climate talks with the united states following nancy pelosi was my trip to taiwan. the move is a setback for dialogue between the world's two biggest emitters, it comes in the run—up to the cop 27 climate summit in egypt in three months�* time. the last summit back in november 2021, china and the united states unveiled a joint pact aimed at ramping up cooperation. that pact focused

you can see that without computer chips in taiwan, without the tsmc, the international community will suffer. >> a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic looked like a minor blip on the world economy. >> thank you -- we will take you to the middle east where at least 10 palestinians including a commander of the islamic jihad group have been killed in israeli strikes on the gaza strip. an infant was also among the victims. israel's prime minister said the strikes were a precise counterterror operation agains an immediate threat. as he spoke, rocket fire was launched from gaza in retaliation reportedly reaching the south of tel aviv. our middle east correspondent has more details now. >> we have had dozens of rockets fired by palestinian militants from gaza towards the center of israel. warning sirens are going off in tel aviv. most sirens are going off in the soutof the country. at the moment, no reports of a dire hit or injuries on the israeli side. but there has been intense rocket fire. in just 30 minutes 70 rockets were fired.

that makes this one corporation, tsmc, absolutely vital to the world cosmic modern economy. it also makes this place very vulnerable. it only for this selfish reason, joseph wu says the world should care what happens to taiwan. tsmc is the most important your producer here in taiwan and one of the most important to producers around the world. you can see without computer chips here in taiwan or without tsmc, the international community is going to suffer. pa. international community is going to suffer. �* , , international community is going to suffer. �* , ., international community is going to suffer. ., ., ., suffer. a tiny blockade of taiwan could make _ suffer. a tiny blockade of taiwan could make the _ suffer. a tiny blockade of taiwan could make the worldwide - suffer. a tiny blockade of taiwan could make the worldwide chip i could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. our north america correspondent john sudworth is in washington. along john sudwor

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. without the computer chips here in taiwan, or without the tsmc, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. here in the uk, a group supporting the family of archie battersbee have said his life support will be switched off on saturday morning. christian concern says the 12—year—old's parents had exhausted all legal routes to delay the ending of his treatment, including an attempt to move him to a hospice. the royal london hospital has not confirmed if or when his life support will be ended. the nhs in england is increasingly reliant on doctors and nurses recruited from outside the uk and eu, analysis by the bbc has found. some 34% of doctors joining the hea

and tsmc has already pledged to make a new chip fab in the u.s. state of arizona. so interesting to see if this latest visit will pave the way for more investors in semiconductors. and the taiwanese president has a new statement out, let's bring it up for you, it was published on the president's official website. she said the taiwan strait is the main route and therefore the peace and stability is critical to the stability of the global high tech product supply chain. again, china's reacted strongly to the latestist congressional visit and we continue to monitor for any chinese military activity today. back to you. >> interesting to see what this is potentially really about. critzi kriti kristie lu stout, thank you. >>> still ahead, we'll break down some of the problems that could be in store for donald trump. florida and plus what we're learning about a reported strike on a russian backed mercenary group in ukraine. our smart sleepers g get 28 minutes more restful sleep per night. all smart beds are on sale. save 50% on the sleep number 360 limited edition smart b

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. without the computer chips here in taiwan, or without the tsmc, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. stay with us on bbc news, still to come: no respite in sight, as europe endures the worst drought on record. the question was whether we wanted to save our people, and japanese as well, and win the war, or whether we want to take a chance on being able to win the war by killing all our young men. the invasion began at 2 o'clock this morning. mr bush, like most other people, was clearly- caught by surprise. we call for the immediate and unconditional withdrawal of all the iraqi forces. 100 years old, and still full of vigor, vitality and enjoyment of life.

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. without the computer chips here in taiwan, or without the tsmc, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. so where does this leave the dialogue on climate change? and what is it that the us and china agreed at the cop26 climate change conference? that's what i discussed with daniel kammen. he is a professor of energy at the university of california, berkeley — and a former climate change advisor to the us government. well, actually, the us and china agreed on quite a lot. and i think that envoy kerry is quite in line. so there's a number of areas where the us—china dialogue is critical, but when it comes to forefront is the so—called global methane pled

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. without the computer chips here in taiwan, or without the tsmc, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. in afghanistan, the islamic state militant group has claimed responsibility for a deadly blast in the capital kabul on friday. afghan police said that eight people were killed and 18 wounded. they say the explosives were attached to a cart loaded with vegetables and parked in a shopping area. ukraine and russia have blamed each other for the shelling of the russian—occupied zaporizhzhia nuclear power plant, the biggest in europe. the attacks are said to have also hit nearby high—voltage powerlines. ukrainian and western officials have accused russian

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. without the computer chips here in taiwan, or without the tsmc, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. now, the us climate change envoyjohn kerry has said china's decision to suspend bilateral talks on climate does not punish washington, it punishes the world. let's discuss the implications of china's decision with daniel kammen, professor of energy at the university of california, berkeley — and a former climate change advisor to the us government. good to have you with us. thank you forjoining us. just looking at mr kerry's tweets there, and talking about that he expected china to continue with its plans for climate action with the us no matter what el

they claim to seven nanometers but it is still seen as well behind the likes of the industry leader tsmc. they cautioned that the designation might be different characterizations or different standards than what is employed at the bigger like tsmc. >> how are u.s. china tensions affecting u.s. mic and its board? >> it has great ramifications. they claim that this technology blockade hurts them from collaboration. this industry is all about collaboration and partnerships. one can't make all the equipment that goes into these advanced chips. with the sanctions, they have been cut off from the likes of nikon, asml and others. it's isolating western board members who have been on smic's board. the latest is kind of a celebrity engineer in the tech industry. the former president of arm holdings before it was bought back in 2016. he posted this on his linkedin page it has been confirmed by smic. after nine years i resigned from the board. the international divide has further widened. he went on to say it is become too hard to carry on having these board meetings in the middle the night without

tsmc, umc are very important suppliers to us, located in taiwan we have a great relationship with them. i don't believe any of the short-term sabre rattling back to speaker pelosi is going to impact our business necessarily. now, the passage of the chips and science act of 2022 which happened late last week and hopefully will get signed by the president this week is very good for both the industry, but actually very good for america that's because it provides critical investments to even the global playing field for u.s. semiconductor companies, and through that process it is strategically important for our economic as well as our national security as well we expect under the provisions of the bill the investment tax credit is a key part that kicks in at the beginning of next year that's an important part and we also have the grants for expanding manufacturing, creating new manufacturing facilities as well as r&d and spending on future innovation. that will all be important parts of how it helps the u.s. regain and, in fact, extend some of our competitiveness. >> all right we'll see if

so since we onshore tsmc, intel announced an additional $20 billion. samsung came over with $17 billion. today, micron announced $15 billion. intel could be doing up to $100 billion in the state of ohio which is in the middle of the country. and ecosystems are coming along with it. so that $12 billion on shoring is going to result in 300 and $50 billion in investment -- $350 billion in investment and the trade that goes along with it. haidi: there will be jobs created but as kathleen alluded to, the productivity of this investment is in question. you already have foundries in place that are struggling to keep up with demand because there is a lack of skilled technical workers. on the other side, you have the argument that this kind of protection is an incentive. you are inducing complacency and a lack of competitiveness within the industry. what can congress do to be able to make these productive investments for the united states? keith: i don't think there's any lack of competition. general secretary xi is obsessed with the semiconductor business. he

the tsmc will expand to arizona, ohio, i'm not sure where. but i think they will see this as an ever greater partnership with us. >> while, despite the semiconductor chips act and the billions of dollars in subsidies, taiwan is expected to donate the world supply of semiconductors for some time. the leader of taiwan calls it democracy chips. this is him speaking on monday. >> [interpreter] economic security is an important pillar of national and regional security. taiwan is willing and able to strengthen cooperation with democratic partners in building sustainable supply chains for democracy chips. [end of translation] >> is present tsai essentially saying that if you want microchips, semiconductors, protect them and taiwan, and prevent a communist takeover by the mainland? >>, well i think someone, one of the scary things is if the mainland were to attack right away, that would have an enormously negative impact on technology throughout the world. you know, but not just technology. china is our eighth largest trading partner. president biden

you know, we were fortunate to onshore tsmc 12 billion dollar largest sanchore in history and it grew to about 250. now 250 billion dollars a us investment and jobs and so what i'd be interested is your perspective from a national security side? how important are those supplies james? how important is that for our national security economic security and then what advice would you give to ceos who have a lot of those tied up and in various places? yeah, i think they're critical because first for finished goods that are manufactured somewhere. often all of the supporting manufacturing there. so it's harder than just moving a single factory. you've got to get all the suppliers available to because if you were if you are dependent upon. a foreign location for any part of it. you've got some level of dependency, right? so we say we're going to move things. it's hard but in some cases, i think we have to build the capability to do that. but there are other things we can't move we can't move rare earths and things like that where they are mined somewhere else. we've got to create the ability

prospect of conflict or destruction, and europe, the us realise how dependent we are on one company, tsmc. so europe is ramping up subsidies for chips production, so a lot of regions and countries will see domestic production, but, yes, this will be more expensive and it will not happen overnight. indeed. thank you _ not happen overnight. indeed. thank you very _ not happen overnight. indeed. thank you very much - not happen overnight. indeed. thank you very much for - not happen overnight. indeed. thank you very much for yourl thank you very much for your time. have a great weekend. four in ten young people are spending more than 30% of their income on rent new figures suggest. anything above 30% is classed by housing experts as unaffordable. but this data shows that the number of people under 30 paying that rate has reached a five—year high. 0ur consumer affairs correspondent colletta smith has this exclusive story. no—one likes paying rent, but right now, people under 30, like mia, are paying through the nose. mr; like mia, are paying through the nose-— the nose. my tenancy, i am

that makes this one corporation, tsmc, absolutely vital to the world's modern economy. it also makes this place very vulnerable. if only for this selfish reason, joseph wu says the world should care what happens to taiwan. without the computer chips here in taiwan, the international community is going to suffer. a chinese blockade of taiwan could make the worldwide chip shortage caused by the covid pandemic look like a minor blip on the global economy. rupert wingfield—hayes, bbc news, in taipei. let's speakjohn sudworth, who was at the white house. what response is there been to china saying it is suspending cooperation on other major matters?— suspending cooperation on other ma'or matters? ., ., , major matters? following the chinese announcement — major matters? following the chinese announcement of _ major matters? following the chinese announcement of these _ major matters? following the chinese announcement of these measures, . major matters? following the chinese announcement of these measures, a i announcement of these measures, a white house spokesperson

tsmc forces nvidia to pay upfront more and that's why we saw the inventory write-off nvidia had to pay for these chips they didn't think it would be able to sell. that's juxtaposed with a customer like apple, those are mostly single source customers and they get better terms and we saw they didn't have these inventory write-offs. guy: european liquidity prices are 10 times higher than where they were a year ago. in terms of power consumption and the chips people use, how much more important is that going to be a factor in terms of what data centers will select if these are the power prices they will be paying? >> it will be critical to lower your total cost of ownership. that's one of the biggest costs from running a data center. so from operating a cloud network in europe, i'm going to evaluate the power consumption the performance of getting that. but if i'm just getting a cpu and it's been executing a lot better in terms of getting new products out of lower process goes till have more power consumption. so they've been gaining a lot of share with their manufacturing process and the

to come to the united states but one caveat of that bill is that anyone who takes funding including tsmc or samsung, they also have to promise not to expand their advanced chip manufacturing in mainland china. i think they will be some courting of samsung and just explain what this new chip still over five years means. >> is geopolitics also playing a part when it comes to opec's increase of supplies that was not as much as expected? >> let's talk about that limited increase. it is the lowest in the six decade history of opec and clearly, that combined with the drop in demand we are seeing in the u.s. to build up the stockpiles put pressure on prices in the u.s.. we had a drop to near the $90 level. it has come up a little. clearly, prices have come lower. the fact that opec plus is only raising up to $100,000 per day speaks to the fact that they have amended ability to do so. drop it in the bloomberg and you see what we are talking about. it is that cushion that the oil producers like to have in case they need to produce more. that is why they are saying they really can't produce more r

tsmc, which i think we looked at already, at one point 6%. the general sense of equity market. i wonder when everything else is doing. rishaad: you talked a little about treasuries. we have at the moment a handle, last time i checked, we saw u.s. treasuries, the yield steadily rising to some extent. right now we have the dollar index unchanged. overall stocks under a bit of pressure. we have one eye on the cpi coming out of the states later once they. we also have that -- benign compared to the rest of the world, but strong inflationary for china, which is of course causing a bit of consternation. traders evaluating inflation at the economy there as well. we have a lot more on the way. and looking at micron, and how it is slowing rishaad: equities under pressure. we do have of course, well, shipping and focus now, because we had some technical remnants that were addressed. we are talking about shipping. give us a sense of whether these bottlenecks, it is a question david was asking before we lost audio with you, whether these bottlenecks have disappeared and whether we are retu

the chairman of -- saying it would render the tsmc fact hoyer nonoperable. one outlier is amd, which is trading higher ahead of the second quarter report after the bell smh is down more than 20%, on pace for its worst year since 2008 so how important are semiconductors to the broader market b.j., good to talk with you today. is there an immediate impact we have already seen such incredible pressure on this industry with supply chain and lo justics, what happens as an immediate results of nancy pelosi's visit >> thanks for having me on, contessa i think it ratchets upped tension quite a bit. they have almost 50% to 60% of capacity in the world. so they obviously are the leading supplier like qualcomm, amd, nvidia, so they are the leaders in the space this put a big overhang for that supply chain it also underscores the need of the chips act, right? having on-shore, you know, supply for all these data centers for the computing side it underscores the time-sensitive nature of having on-shore manufacturing for supplies. >> there you have the president and congre

and the adrs for the tsmc. it does reflect the premise that it is hard to preemptively price in any sort of geopolitical risks. a lot of investors have been talking about this including ubs. they say the timeline of a possible confrontation between the u.s. and china over taiwan is a little less clear-cut than what we had with russia's invasion of ukraine. on top of that, we can take a look at the reaction to geopolitical events -- it also tends to be short-lived. look at the initial reactions to recent events including the war in afghanistan, september 11 attacks. you see the initial loss but six months later we see recovery. haidi: we are still seeing investors turn to bonds from both countries. annabelle: this is perhaps more of a reflection of the recession risks on the horizon here. we are watching what is happening in the treasury markets where we are seeing the biggest ramifications of swings we have in treasury yields. a lot of this chaos coming into the market has traditionally been preferred as a safe

. -- it is a hypothetical right now, but i am sure nancy pelosi, who brought that up with tsmc in taiwan yesterday, will likely be bringing that same message to south korea. then on to japan tomorrow, where there is another host of geopolitical and other business issues to discuss. rishaad: and tensions between south korea and japan as well. stephen engle, thank you so much. let's move back towards what stephen was talking about, disruptions in global supply chains. rahul kapoor is president of maritime supply chains at s&p global. thank you for joining us. what do you make of this saber-rattling over the taiwan strait? how much does it endanger the supply chains in this part of the world? you were saying yesterday that 90% of the biggest boats there go through this strait. good -- guest: thank you for having me. we are certainly watching the events. what we are looking at is particularly the military exercises, some of these very close to the taiwan sea ports. these would certainly be affected. but i have to add a caveat, we have not seen a situation where the flag authorities, or insur

you may be able to get enough die from tsmc but if you cannot get enough substrate, you're going to have a problem. i think it is with us for a while. emily: where is arm a year from now? rene: hopefully with you talking about record revenues, record royalties, record design wins. i'm hoping the momentum continues. i'm confident. emily: and will you be public? i had to try one more time. [laughter] it is good to have you back, thank you. coming up, coin fund's brand-new web three venture fund. we are going to talk about where they are placing their bets. managing partner david paquin, next. this is bloomberg. ? emily: time for our crypto report. even though the market may not be as bullish as last year, coinfund is announcing a $300 million web three venture fund, backed by institutional investors and crypto native founders. i want to bring in david pakman, managing partner and head of venture investing at coinfund now. we have been talking about a lot of dry powder out there with the market downturn. a lot of investors right now having to sit on the sidelines. why launch this now? david

a company called tsmc, they make chips for all the big guys like apple and the pelosi's own plenty of that stock. is this a surprise? no, all part of the plan. following up shares in chip companies before nancy went to taiwan. up 25% in just a month. the pelosis are always looking for new investment opportunity and nancy seems to be the brains of the operation. reporting on some serious wall street chatter, he is shorting the s&p to make a few bucks in rumors say that paul's trading colors everything nancy does. just a rumor. expect nancy to come home with some hot tips. could she be doing all of this because she's planning on retiring at the end of this term customer plotting the next winning trades so her and paul can enjoy the finest cav in napa. unless she thinks the chinese are bluffing. they have a history of bluster and don't follow through, that is why they call them the paper tiger. we all know the chinese are outmanned and outdone but with biden as president you never know what could happen. does that explain why nancy is so carelessly toeing the line with a war with china q

taiwan's tsmc the chip making giant has pledged $12 billion to build a new chip fab in the u.s. state of arizona, and another company called media tech has pledged to open a chip design center in the u.s. state of, you guessed it, indiana. back to you. >> thank you. >>> and the u.s. is approaching the end of primary season for the 2022 midterm elections. only a few states have yet to make their party choices. tuesday will see congressional primary races in new york and oklahoma, but florida is getting most of the attention. republican governor ron desantis who is already talking about running for president in 2024 must first win re-election in november. tuesday's vote will determine his democratic challenger. >>> vocal republican critic of donald trump says she has no greet sacrificing her political career to defend democracy against the former president. u.s. representative liz cheney is just days removed from a crushing defeat in her re-election bid in wyoming. she became a top target of trump and his supporters after voting for his impeachment and now serving as vice chair of

and unfortunately, the reality is, because they are tsmc documents, we are probably never going to know exactly what those documents had unless they are declassified. and that probably won't be for decades. but oddly enough, the letter for mueller clarence's to which i find that fascinating. >> okay, frank to you actually discretion about rightward. you know that that was among the first outlets to publish became under big-time fire for doxxing fbi agents. what have you learned about this, and how dangerous is that? >> you know, i can't in my mind recall a period of time where the fbi, writ large, cross city six field offices with facing this kind of physical and imminent threat. the intelligence out there, the monitor the violence extreme list, ice chat rooms. their focus squarely on hurting the fbi and its agents. as well as the u.s. magistrate who signed off on this. they want everybody involved. they want the agents, every age and that went to mar-a-lago, and we saw this week of course a deadly situation that fbi citizen that he. and let me say something quite clearly. the media out

the same as tsmc and i don't think the chips act in any near term will be able to reduce our reliance on taiwan then the third aspect of the chips act which is to help on the shortage side in auto semiconductors i think that also is more prosed to take place over the next three to four quarters, so my view on the chips act is that, yes, it is an incremental positive yes it brings more high tech manufacturing to the u.s. but i don't think a silver bullet in terms of reducing reliance on taiwan any time soon. >> i think you hit the nail on the head especially what some of the skeptics are looking at is in the short term it is unlikely but in the long term may also be unlikely and there are also questions on whether the money is spent in the right place to onshore manufacturing. is there an argument to be made the u.s. should be friend shoring instead putting money into places like south korea and japan that may have a better chance of doing this where the labor issues aren't as great as here in the u.s. >> i think that is a good point. this is a first step it is an important step. it mi

>> and she also met, you know, with the leadership at tsmc, the number one ship manufacturer vital to the global economy and tech industry. yes, it check ed many boxes for the add manition to have basically the third most powerful politician in the united states on the ground here in taiwan meeting and engaging with the members of this government, giving them that legitimacy that you cannot -- can you not give someone better legitimacy than to have, you know, a well established and respected politician from the united states like nancy pelosi. you know, speaking with you and talking about your democratic system, you know, she was speaking with people, some of whom were, you know, meeting illegally when they were trying to form their political party, the dpp and now they're the leaders of this country. it is truly, you know, an astonishing story of a democracy that rose from a dictatorship. and nancy pelosi is here to send the message to taiwan that, you know, america has taiwan's back. now do people here in taiwan, does the government here actually believe that fully? do they believe

she met with the head of taiwan's chip giant tsmc. so how should we be interpreted these moves by the speaker? i they're pretty much a celtics she is somewhat. she is there. >> and knowledge in their democratic reforms that have occurred in the past 20 years. remember near taiwan for all that part of being a separate china was not always a democracy was kind of a one party rule that's changed over the years. i think reaffirming that and you're quite frankly, acknowledging taiwan importance of the semiconductor industry in this country is is very important. so i think these are all things that one would do as sort of because i had a going and i guess the head of state by proxy because biden can go there. so she's peas and ticking off all the boxes that one would want to have have done by a leader from the united states. and as much as you know, they were in china. whenever reaction to those men know what has been a bigger thorn in their side consistently for decades. then nancy pelosi and good for. >> and mike, you also mentioned this

also hosted a luncheon with her with other top business leaders, including the founder of chip foundry tsmc speaker pelosi visited the parliament where she was promoting the u.s. chips act and met with human rights activists. she is now in south korea, but pretty much everyone in the region is waiting to see if there will be further fallout from her visit the chinese military in about 11 hours from now is expected to hold extensive exercises all around taiwan, a taiwan officials have actually said that this would violate their territorial waters and the concern is that these drills could lead to an accidental escalation taiwan officials are also fearing a potential impact on the global supply chain saying that the pla drills are acting as an air and sea blockade of taiwan now, authorities on the island warn that the live fire drills are happening -- or are expected to happen very close to ports. they say they are also coordinating with aviation authorities around the region, in japan and the philippines, for example, for airline -- for air traffic rerouting and that's because some of the ai

at some point before she leaves, she is scheduled to meet with tsmc, the world's largest manufacturer of semiconductors. human rights and chips sums up the agenda. shery: plenty of rhetoric from beijing including military measures. what are we seeing so far? stephen: we got the first words out of state media, state broadcasters saying military drills have begun. we will run through sunday where they will conduct military exercises in zones that surrounds taiwan. there have been live fire tests, exercises and the taiwan strait. short of a military invasion or act of war, many analysts are expecting an increase of gray zone tactics. sam talked about the cyberattacks coming from beijing on the presidential office and other areas, other websites in taiwan, that happened yesterday. these exclusion zones. one time in 1995, these gray zone taxes could be a plan -- play to further isolate taiwan and make the risk premium all the more expensive. there is still the military threat and that's why we can bring up this map. i tracked it last night. she did not take the direct route, she did not go

the delegation met and discussed supply chains with tsmc. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: and you don't asian president is set to unveil budget plans to restore fiscal discipline. we will get a preview, and. this is bloomberg. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. ♪ shery: the indonesian president will deliver his annual budget speech in the next two hours, unveiling plans to protect the southeast asia lodging economy. -- largest economy. what will investors be watching out for? reporter: it will be about subsidies. it's the same strategy they want to pursue for 2023 and said we should expect large subsidies. that strategy has paid offer indonesia. inflation is pretty low. the bank has been able to keep interest rates at record lows, everyone else's tightening. haidi: how sustainable are these energy subsidies? reporter: p

designation of seven nanometers might not be based on the same criteria or the same standards of that tsmc, the largest in the world in taiwan. so you take that claim with a little bit of grain of salt, but still, the numbers don't lie, 500 14.3 million u.s. dollars, that income was deep by 45 million u.s. dollars also revenue coming in at just under 2 billion u.s.. shery: how are u.s./china tensions really affecting the company? stephen: absolutely at every level. semiconductor manufacturing has become a chia political issue, and it's a collaborative business. you need ties with suppliers. one company cannot make every set of equipment or material that goes into chips, obviously. so, this blockade, if you will, by the u.s. company like fmi see , has prevented it from dealing with companies like nikon, as well as asml for some of the advanced equipment and materials that go into chips, so that has already the company on that front, but also, the bifurcation, as some would call it of the tech world between china and the united states is also hurting its boardroom, another senior board direc

president who also held a lunch with her that included several business leaders including the founder of tsmc now, she also met with taiwan's president over the c.h.i.p.s. act and met with human rights activists toward the orlando f her day. beijing's response was very swift. they said this was a political provocation that was meant to embolden those in taiwan who want to see independence as opposed to falling in line with what beijing believes tee want is a part of china diplomatingly china summoned the u.s. ambassador. economically they banned some imports of citrus fruit, fish, sweets, they halted exports of natural sand and there's the military response. they announced minutes after her arrival they were going to have five live military rounds. they're holding missile tests off of tie wab this is after they dispatched 21 warplanes to the taiwan strait, all of this raising concerns about the possibility of accidental escalation, and at least in the short term, there's likely going to be disruption to the supply chain, and that's because taiwan officials have said that these live-fire drill

stuart: it would be awful because tsmc, taiwan semiconductor is the world's biggest and most important chipmaker, they go into all kinds of computers. if an invasion or military action temporarily shut them down in taiwan you are talking serious stuff. >> the last few years if you wanted to purchase a new car people have been complaining because they would get the car and the seat warmers wouldn't work. if something happens we will be cranking our windows manually again. they provide chips to apple, qualcomm, nvidia, everyone is getting chips from taiwan semi. lauren: they have 100,000 cars waiting for last-minute chips. stuart: good stuff. rookie baseball card, derek jeter could sell half a billion dollars, can gold will be here with millions of dollars of cards and show them off. treasury secretary janet yellen says the inflation reduction act won't raise taxes for families but investing in 400 grand and will pay in other ways like higher prices at the store. jerry baker takes that on next. ♪♪ ♪ ♪ ♪ ♪ ♪ ♪ new projects means new project managers. you need to hire. i ne

but when it comes to the most advanced semiconductors, there's just one taiwanese company, tsmc, that makes more than 90% of the entire global supply. you might have read that the us has begun trying to solve the problem. joe biden is about to sign into law a bipartisan bill congress passed last week called the chips and science act — which will provide tens of billions of dollars to companies developing semi conductors with tax credits for research. emily taylor is the ceo of oxford information labs. she is also the editor of the chatham house journal of cyber policy. she's in oxford. welcome to the programme. talk to me about taiwan's role with semiconductors. if there was to be in embargo, if china was to block the air and in embargo, if china was to block the airand dc, in embargo, if china was to block the air and dc, exported from taiwan, what would that mean for the global economy? it taiwan, what would that mean for the global economy?— global economy? it would have a really significant, _ global economy? it would have a really significant, adverse - global economy? it wou