BREAKING: China Bans Intel — $100 Billion Vanishes Overnight!
"85,960 views Jul 1, 2025 #intel #huawei #smic
China just delivered a crushing blow to Intel — cutting off U.S. chips from government systems and switching to homegrown tech from Huawei and SMIC. In this video, we break down how China pulled it off, what it means for Intel’s future, and how this seismic shift could reshape the global tech landscape."
So take that, China!
No, I didn't mean stop buying processer chips from Intel and AMD. 25% of Intel global sales are to China according to this video. I didn't want you to make your own chips. And of course I didn't expect that you might even make better chips than we do, Trump sorta says
Like the sanction on Russia, Trump tariff's have accelerated countries to develop in house and/or move out of US supply chains.
Low yields are a technical problem that I'm sure Samsung will be able to overcome in time. But having no customers is not something you change with engineering.
Having customers for your products is, to state the obvious, a top priority in any successful business plan. But for both Samsung and TSMC you could totally see this coming. There isn't sufficient domestic manufacturing within the US to support the chip capabilities that they're bringing on line. And the chips won't be competitive internationally due to the higher cost of production in the US. Yes, there certainly is a geopolitical reason to onshore your semiconductor needs, but economics will always have the last say.
Ohio was all excited about an Intel factory in central ohio.
"Intel is constructing two leading-edge semiconductor chip factories in Licking County, Ohio, near New Albany, with an initial investment of over $28 billion. The project, known as "Ohio One," is the largest private-sector investment in Ohio history. While initially slated to begin production in 2025, the first factory's completion and operation have been delayed to 2030 or 2031, with the second factory following in 2032. The project is expected to create 3,000 Intel jobs and 7,000 construction jobs, with the potential for tens of thousands more in the surrounding ecosystem. "
with a delay until 2030, the huge investment is going no where. They did break ground and sucked up ground water, but now entire project is on hold.
Not long after Samsung made its relocation 'decision' and turned the sod at USA plants, China developed a smart workaround for the EUV lithography ban. Now Samsung might be incapable of catching up with technology good enough to meet the price shift. Tough cheese Samsung, maybe you could rent the factory to Fred Flintstone as he has a new idea for transport using round rocks.
Correction: In a recent comment I thought it was possible that crazy Trump shake up things leading to getting some important results in the international arena.
I was duped. I thought that the ice had cracked and for example, I thought that the Zionists would have learned a lesson from Iran.
Brian Berletic Posted a video "NEW VIDEO: US President Trump Streamlined the National Endowment for Democracy, not Dismantle"
NED going full speed ahead. Used to be CIA did bad shit and NED were the front for sorta good stuff. Now NED doing the bad stuff and much less transparent. Brian is in Indonesia and he is aware of regime change in Asia. Also US going full stream ahead in regime change operations -- Georgia seems OK for now, but Azerbaijan might be a problem. These are various threads that the regime change operations are in full swing, often working with MI6.
I have now flipped to Trump is carrying out the Empire's agenda through the deep state. I am not expecting anything from him.
Here is a link to the video shown in X which probably won't work.
I don't think I'm being controversial, when I say. You only have te read comments by the average US citizens in any social media platform. To understand the average American citizen. Doesn't inspire much confidence on a business level. When wanting to invest massive amounts of capital in them to produce any goods. We can take Boeing as an example. Without any doubt 25 years ago Boeing were producing some of the very best commercial aircraft on the planet. I do know they were expensive to buy. But if you produce a top quality product, you will always get customers. Ford used to produce good cars especially the ones built in Europe. But it was still an American company. No other American cars have ever sold well outside of America. Tesla had a brief popular moment. Until the Chinese electric car maker BYD came on the scene. Producing a much better product for a cheaper price. To this day 99% of Americans don't realise how much the US depended on Russian rockets to launch their satellites into orbit. As a manufacturing base America is finished. There's far too many Americans who have gotten used to making a living off the back of the bloated Government gravy train. Making good money for doing nothing. Then there's the millions who learnt the financial black magic tricks of the American markets to make a great living doing nothing. The simple facts are this money was easily available to Americans. Simply because of the Dollars reserve status. This is sinking fast but there's a generation of Americans who believe they're fully entitled to earn very good money for producing absolutely nothing of value to anyone. Until this is admitted & rectified America will just gain higher debts & more desperate politicians, who will only believe desperate actions are needed to carry on the fantasy world they live in. It's unsustainable, America is dropping like a stone & it's most likely the only thing keeping up the appearance the economy is still turning. Are the tens of millions of very low paid immigrants & the astronomical illicit drug trade.
The Service Economy has existed for two full generations and is about to begin its third. Most people I meet are employed there as was I for twenty years, roughly 1980-2000. Many of those people I meet and know would much rather have a job producing something productive rather than providing a service. Many creative people that were once employed in production jobs are now artisans. A few miles from where I live is one of the few remaining Job Corp schools where young adults are taught trades—electrician, plumbing, carpentry—so basic infrastructure can be maintained. And many of those people run their own businesses. Painters, landscape contractors, window and chimney cleaning services. The best yet hardest service positions are in healthcare. My stepson has ADHD, so I suggested he try and become a butcher since that’s a solitary sort of job that conforms to his cognitive and social issues, and he’s become very good at it. My step-grandkids I’m trying very hard to steer into STEM tracks so they can become professionals in some STEM related field and ask them if they really want to become a clerk or some other basic service industry employee having no real future job development. And then there’re parents many of whom are stuck in service jobs that keep them away from the vital job of parenting. When I was a child there was never any thought of using the TV as a babysitter, but that’s now all too common and made worse with computers and smart phones. We now have dumb parents raising even dumber children. Once upon a time, a parent could teach their children how to work on the family car, and how to fix up a used one. That stopped being the case by the mid-1980s if not earlier.
Those conditions don’t exist in China, Russia and elsewhere where Neoliberalism hasn’t taken over. They may have the same problems with cars, but light and heavy manufacturing is still the norm, and engineering is a very good career ladder. The key is having government and a citizenry strong enough to keep finance and the electoral process as public utilities—private finance cannot be allowed to have any substantial political power and must be disciplined to serve the people/state and not their pecuniary interests.
I helped my own son become an Electrical engineer, as I myself work in Construction. Not long before I'm fully retired. My daughter is a mental health professional at manage level. My son earns more than her not much more. But she had to get her degree before becoming a mental health nurse. Then working her way up. He did a 4 year apprenticeship earning wages every week. Luckily my daughter after graduating had no student loans to pay off. That's another thing I find obscene that only happens in America to my knowledge.
Good job!! Student loan debt is the US Government’s #1 asset. Many nations charge for university level education, but getting info is complicated as I just discovered as several searches only related US issues.
They do in the UK also but my daughter was sponsored by the NHS for her degree on the basis of her exam results & if she agreed to go to work in the NHS for 5 years after graduating. It's the costs that seem to be astronomical in the US. I see youngsters after graduating having debts of 50 thousand dollars & many with more above that figure. We would have helped her as much as possible regardless. But I told her under no circumstances would she get any help. If she was just going to University to gain. What I woukd label a worthless degree. I can't understand for the life of me kids getting into so much debt, to not have a career lined up after graduating. I know friends who have let their kids go to University & end up with debts. When I hear what they're studying in some cases. I just can't get my head around it. 2 girls my daughter grew up with are prime examples. One is a barmaid now, the other a shop assistant. Both will be in debt for 10 years paying their Student loans off. It's madness.
I like it but I don't get it. What's the problem with relocating to the US and manufacturing there? Same problems as Samsung chip makers? Lack of orders?
Domestic orders within the USA and/or foreign orders to the rest of the world?
What is it?
How about German auto industry moving to USA - it will be stopped/slowed, crippled by this?
Why cannot orders to the rest of world proceed as they would have done in (say) Germany?
Is it reciprocal tariffs the other countries will put on american produced goods? Or is it just the cost of american manufacture when the dollar is so high?
The #1 problem is the high cost-low skill work force here. The dollar is actually falling rapidly—down 18% against the euro in just two months. Land costs. Export restrictions as the article noted. Where are the supply chains. Many components are subjected to tariffs causing costs to rise and profits to plummet. Yesterday there was a similar article about the electric car and solar industries and one of their key components—batteries. And there’s likely more to be listed. One problem is uncertainty because of the lack of policy continuity, which is part of Samsung’s problem. And here’s one to think about: Why are foreign companies being wooed when we ought to be subsidizing American companies?
So aside from high cost labor, the market isn’t here as nobody uses semiconductors in manufacturing in the US, that manufacturing is in China, Viet Nam, Indonesia (?), India, etc. ? So just like embargoing semiconductors to Huawei, resulting in a huge boost to the Chinese industry, we shot another toe off (or worse, maybe the whole foot).
So it's mainly the simple cost of doing business in the usa and the market environment. Things they could well see from where they are, thinking of Germany in particular. Hard to see why they'd even attempt it. Maybe, as I've seen suggested, many are merely saying it but not going to do it.. ?
Part of the problem is the financialisation of US industry. Manufacturing is not as profitable for many firms as various forms of financial manipulation, and as long as this is the case, they have no incentive to change. They are 'Boeing-ised'.
It is difficult to admire the vaunted “intelligence” of TSMC and Samsung considering the likely outcomes. Where is the above average IQ of East Asians that has been definitely established by multiple research?
Perhaps those minds were altered by a bribe or some other incentive. And it should be noted most such developments are being done in low wage states where few skilled workers exist.
There is a subreddit which refers to the multiple safety issues that Samsung has at the Taylor construction site — with little credit to Samsung by multiple redditors.
This case really underscores how fraught the US semiconductor push has become, despite the massive subsidies and political fanfare. Samsung’s Taylor plant delays highlight the deeper structural issues: a mismatch between local demand and production capacity, high operational and labor costs, and the lingering impact of US trade and tariff policies injecting uncertainty.
This is the same problem with the crazy GOP's economic policies of giving money to the 1% and corporations. They believe if one just build things people will buy them. They forget the golden rule of business: customer is king. Business exists to serve the customers and not the other way around. This is the reason governments exist, because they create customers with human capital investments.
The TSMC Arizona fiasco should be lesson in how to diminish your business when you obey US diktats. China is the largest economy, period. They can scale investment, and also vertically scale by the sheer size of China's industrial needs. And then there's the massive internal market. But people in DC and elsewhere like to live in la-la land. When you have the US arbitrarily strong arming investment decisions companies like TSMC and Samsung will be weighed down by losses (financial and opportunity). Look at Huawei's Harmony OS which is scalable across devices, phones, cars, TV, etc. Google's product Fuschia disappeared and Android is still stuck with a monolithic Linux kernel. The critical component has been the lack of capable and willing engineering staff at these US projects, hence imported talent. Really, is AI going to fill these gaps.
Was referring to the incentives local and national governments give to corporations to set up factories in specific regions. CHIPs act, the kind of state directed investments the Trump administration seems to be inching towards.
Not the planning corporations have to do. The difference is who pays when the plan goes south
BREAKING: China Bans Intel — $100 Billion Vanishes Overnight!
"85,960 views Jul 1, 2025 #intel #huawei #smic
China just delivered a crushing blow to Intel — cutting off U.S. chips from government systems and switching to homegrown tech from Huawei and SMIC. In this video, we break down how China pulled it off, what it means for Intel’s future, and how this seismic shift could reshape the global tech landscape."
So take that, China!
No, I didn't mean stop buying processer chips from Intel and AMD. 25% of Intel global sales are to China according to this video. I didn't want you to make your own chips. And of course I didn't expect that you might even make better chips than we do, Trump sorta says
Like the sanction on Russia, Trump tariff's have accelerated countries to develop in house and/or move out of US supply chains.
“this video”
To which video would you be referring?
Don forgot to add the link.
Easy to google: https://www.youtube.com/watch?v=ljBaS1ZCUCI
what is shocking is that the usa and trump are incapable of seeing any of this happening! they live in an altered universe, lol...
Low yields are a technical problem that I'm sure Samsung will be able to overcome in time. But having no customers is not something you change with engineering.
Having customers for your products is, to state the obvious, a top priority in any successful business plan. But for both Samsung and TSMC you could totally see this coming. There isn't sufficient domestic manufacturing within the US to support the chip capabilities that they're bringing on line. And the chips won't be competitive internationally due to the higher cost of production in the US. Yes, there certainly is a geopolitical reason to onshore your semiconductor needs, but economics will always have the last say.
Ohio was all excited about an Intel factory in central ohio.
"Intel is constructing two leading-edge semiconductor chip factories in Licking County, Ohio, near New Albany, with an initial investment of over $28 billion. The project, known as "Ohio One," is the largest private-sector investment in Ohio history. While initially slated to begin production in 2025, the first factory's completion and operation have been delayed to 2030 or 2031, with the second factory following in 2032. The project is expected to create 3,000 Intel jobs and 7,000 construction jobs, with the potential for tens of thousands more in the surrounding ecosystem. "
with a delay until 2030, the huge investment is going no where. They did break ground and sucked up ground water, but now entire project is on hold.
And there are more such stories going unreported. Do watch the Hudson/Wolff chat if you haven’t already, https://www.youtube.com/watch?v=-5vl79OTfzY
Yes, when Intel was led by engineers it was on top the game but then the turn to businesspeople was the beginning of its slow death.
Just like Boing...
Not long after Samsung made its relocation 'decision' and turned the sod at USA plants, China developed a smart workaround for the EUV lithography ban. Now Samsung might be incapable of catching up with technology good enough to meet the price shift. Tough cheese Samsung, maybe you could rent the factory to Fred Flintstone as he has a new idea for transport using round rocks.
Correction: In a recent comment I thought it was possible that crazy Trump shake up things leading to getting some important results in the international arena.
I was duped. I thought that the ice had cracked and for example, I thought that the Zionists would have learned a lesson from Iran.
Brian Berletic Posted a video "NEW VIDEO: US President Trump Streamlined the National Endowment for Democracy, not Dismantle"
NED going full speed ahead. Used to be CIA did bad shit and NED were the front for sorta good stuff. Now NED doing the bad stuff and much less transparent. Brian is in Indonesia and he is aware of regime change in Asia. Also US going full stream ahead in regime change operations -- Georgia seems OK for now, but Azerbaijan might be a problem. These are various threads that the regime change operations are in full swing, often working with MI6.
I have now flipped to Trump is carrying out the Empire's agenda through the deep state. I am not expecting anything from him.
Here is a link to the video shown in X which probably won't work.
https://x.com/i/status/1940734653809545727
Trump has always worked for “The House” just as Reagan did.
I don't think I'm being controversial, when I say. You only have te read comments by the average US citizens in any social media platform. To understand the average American citizen. Doesn't inspire much confidence on a business level. When wanting to invest massive amounts of capital in them to produce any goods. We can take Boeing as an example. Without any doubt 25 years ago Boeing were producing some of the very best commercial aircraft on the planet. I do know they were expensive to buy. But if you produce a top quality product, you will always get customers. Ford used to produce good cars especially the ones built in Europe. But it was still an American company. No other American cars have ever sold well outside of America. Tesla had a brief popular moment. Until the Chinese electric car maker BYD came on the scene. Producing a much better product for a cheaper price. To this day 99% of Americans don't realise how much the US depended on Russian rockets to launch their satellites into orbit. As a manufacturing base America is finished. There's far too many Americans who have gotten used to making a living off the back of the bloated Government gravy train. Making good money for doing nothing. Then there's the millions who learnt the financial black magic tricks of the American markets to make a great living doing nothing. The simple facts are this money was easily available to Americans. Simply because of the Dollars reserve status. This is sinking fast but there's a generation of Americans who believe they're fully entitled to earn very good money for producing absolutely nothing of value to anyone. Until this is admitted & rectified America will just gain higher debts & more desperate politicians, who will only believe desperate actions are needed to carry on the fantasy world they live in. It's unsustainable, America is dropping like a stone & it's most likely the only thing keeping up the appearance the economy is still turning. Are the tens of millions of very low paid immigrants & the astronomical illicit drug trade.
The Service Economy has existed for two full generations and is about to begin its third. Most people I meet are employed there as was I for twenty years, roughly 1980-2000. Many of those people I meet and know would much rather have a job producing something productive rather than providing a service. Many creative people that were once employed in production jobs are now artisans. A few miles from where I live is one of the few remaining Job Corp schools where young adults are taught trades—electrician, plumbing, carpentry—so basic infrastructure can be maintained. And many of those people run their own businesses. Painters, landscape contractors, window and chimney cleaning services. The best yet hardest service positions are in healthcare. My stepson has ADHD, so I suggested he try and become a butcher since that’s a solitary sort of job that conforms to his cognitive and social issues, and he’s become very good at it. My step-grandkids I’m trying very hard to steer into STEM tracks so they can become professionals in some STEM related field and ask them if they really want to become a clerk or some other basic service industry employee having no real future job development. And then there’re parents many of whom are stuck in service jobs that keep them away from the vital job of parenting. When I was a child there was never any thought of using the TV as a babysitter, but that’s now all too common and made worse with computers and smart phones. We now have dumb parents raising even dumber children. Once upon a time, a parent could teach their children how to work on the family car, and how to fix up a used one. That stopped being the case by the mid-1980s if not earlier.
Those conditions don’t exist in China, Russia and elsewhere where Neoliberalism hasn’t taken over. They may have the same problems with cars, but light and heavy manufacturing is still the norm, and engineering is a very good career ladder. The key is having government and a citizenry strong enough to keep finance and the electoral process as public utilities—private finance cannot be allowed to have any substantial political power and must be disciplined to serve the people/state and not their pecuniary interests.
I helped my own son become an Electrical engineer, as I myself work in Construction. Not long before I'm fully retired. My daughter is a mental health professional at manage level. My son earns more than her not much more. But she had to get her degree before becoming a mental health nurse. Then working her way up. He did a 4 year apprenticeship earning wages every week. Luckily my daughter after graduating had no student loans to pay off. That's another thing I find obscene that only happens in America to my knowledge.
Good job!! Student loan debt is the US Government’s #1 asset. Many nations charge for university level education, but getting info is complicated as I just discovered as several searches only related US issues.
They do in the UK also but my daughter was sponsored by the NHS for her degree on the basis of her exam results & if she agreed to go to work in the NHS for 5 years after graduating. It's the costs that seem to be astronomical in the US. I see youngsters after graduating having debts of 50 thousand dollars & many with more above that figure. We would have helped her as much as possible regardless. But I told her under no circumstances would she get any help. If she was just going to University to gain. What I woukd label a worthless degree. I can't understand for the life of me kids getting into so much debt, to not have a career lined up after graduating. I know friends who have let their kids go to University & end up with debts. When I hear what they're studying in some cases. I just can't get my head around it. 2 girls my daughter grew up with are prime examples. One is a barmaid now, the other a shop assistant. Both will be in debt for 10 years paying their Student loans off. It's madness.
Unbelievable!
Trump the f*ckup.
No, he is a high achiever. I do not think there is an equivalent demolition expert in the global arena. In his mind 9/11 is erectile dysfunction.
I'm glad I wasn't drinking anything when I read your comment!!
I like it but I don't get it. What's the problem with relocating to the US and manufacturing there? Same problems as Samsung chip makers? Lack of orders?
Domestic orders within the USA and/or foreign orders to the rest of the world?
What is it?
How about German auto industry moving to USA - it will be stopped/slowed, crippled by this?
Why cannot orders to the rest of world proceed as they would have done in (say) Germany?
Is it reciprocal tariffs the other countries will put on american produced goods? Or is it just the cost of american manufacture when the dollar is so high?
Or is all that wrong?
What is the story?
The #1 problem is the high cost-low skill work force here. The dollar is actually falling rapidly—down 18% against the euro in just two months. Land costs. Export restrictions as the article noted. Where are the supply chains. Many components are subjected to tariffs causing costs to rise and profits to plummet. Yesterday there was a similar article about the electric car and solar industries and one of their key components—batteries. And there’s likely more to be listed. One problem is uncertainty because of the lack of policy continuity, which is part of Samsung’s problem. And here’s one to think about: Why are foreign companies being wooed when we ought to be subsidizing American companies?
So aside from high cost labor, the market isn’t here as nobody uses semiconductors in manufacturing in the US, that manufacturing is in China, Viet Nam, Indonesia (?), India, etc. ? So just like embargoing semiconductors to Huawei, resulting in a huge boost to the Chinese industry, we shot another toe off (or worse, maybe the whole foot).
So it's mainly the simple cost of doing business in the usa and the market environment. Things they could well see from where they are, thinking of Germany in particular. Hard to see why they'd even attempt it. Maybe, as I've seen suggested, many are merely saying it but not going to do it.. ?
The billions in subsidies are very juicy bait.
Part of the problem is the financialisation of US industry. Manufacturing is not as profitable for many firms as various forms of financial manipulation, and as long as this is the case, they have no incentive to change. They are 'Boeing-ised'.
It is difficult to admire the vaunted “intelligence” of TSMC and Samsung considering the likely outcomes. Where is the above average IQ of East Asians that has been definitely established by multiple research?
Perhaps those minds were altered by a bribe or some other incentive. And it should be noted most such developments are being done in low wage states where few skilled workers exist.
There is a subreddit which refers to the multiple safety issues that Samsung has at the Taylor construction site — with little credit to Samsung by multiple redditors.
Why am I not surprised.
This case really underscores how fraught the US semiconductor push has become, despite the massive subsidies and political fanfare. Samsung’s Taylor plant delays highlight the deeper structural issues: a mismatch between local demand and production capacity, high operational and labor costs, and the lingering impact of US trade and tariff policies injecting uncertainty.
This is the same problem with the crazy GOP's economic policies of giving money to the 1% and corporations. They believe if one just build things people will buy them. They forget the golden rule of business: customer is king. Business exists to serve the customers and not the other way around. This is the reason governments exist, because they create customers with human capital investments.
Thanks Karl. Very illuminating article. I hope there are many more like this! I wonder if Trump has been told? 😳
The TSMC Arizona fiasco should be lesson in how to diminish your business when you obey US diktats. China is the largest economy, period. They can scale investment, and also vertically scale by the sheer size of China's industrial needs. And then there's the massive internal market. But people in DC and elsewhere like to live in la-la land. When you have the US arbitrarily strong arming investment decisions companies like TSMC and Samsung will be weighed down by losses (financial and opportunity). Look at Huawei's Harmony OS which is scalable across devices, phones, cars, TV, etc. Google's product Fuschia disappeared and Android is still stuck with a monolithic Linux kernel. The critical component has been the lack of capable and willing engineering staff at these US projects, hence imported talent. Really, is AI going to fill these gaps.
Central Planning still does not work
All corporations do central planning.
Was referring to the incentives local and national governments give to corporations to set up factories in specific regions. CHIPs act, the kind of state directed investments the Trump administration seems to be inching towards.
Not the planning corporations have to do. The difference is who pays when the plan goes south
Yes, Socialism for the rich; destitution for the rest.
You and Bernard have lost your mind obviously Bernard got vaccine injured. Sorry for him, but y’all both suffer from TDS.
Sorry, but your lack of ability to reason shines through your comment.
Obviously Raphael is a product of the "The #1 problem" you describe above.