Hmm, and wouldn't that work both ways? What's stopping this from being an impetus for China to stop being dependent on US-allied countries for semiconductor fabrication?
This is one advantage of tariffs. Increase the costs. For some applications there are easy substitutes, for others it is harder which incentivizes the creation of alternatives.
Of course the downside of tariffs are also well-known. Retaliation tariffs that damage your own industry. Increased costs being passed own downstream in the economy resulting in less value creation. The overall deadweight loss of not utilizing comparative advantage.
It still might be worth it, but you don't get that "force" for free.
Re:TSMC Reports Q3 Earnings [pdf]
by sudosysgen on Thursday October 13, 2022 @02:35PM
(#33194744)
You normally do that using a University, a national lab, an SoE, or subsidies. Not using export control and sanctions .
"Force people to try to come up with alternatives rather than rely on that single external source that short-term thinking created" seems a lot smarter than you give it credit for.