Connect with us

ASIA

TSMC, Intel suppliers delay US plants on surging costs, labor crunch

Published

on

Taiwan Semiconductor Manufacturing Co (TSMC) and at least five suppliers to Intel have postponed building plants in Arizona, a sign that rebuilding the US chip supply chain is proving more difficult than expected, according to Nikkei Asia.

Chemical and materials manufacturers LCY Chemical, Solvay, Chang Chun Group, Chang Chun Group, KPPC Advanced Chemicals (Kanto-PPC) and Topco Scientific had announced plans and purchased land to build facilities in Arizona after TSMC and Intel, the world’s two largest chipmakers, launched multi-billion dollar investments in the state.

However, several chip industry executives briefed by Nikkei Asia said that the construction of these facilities, which are vital to building a complete chip supply chain, has been suspended or significantly scaled back.

In some cases, the delays are expected to be temporary, while in others the projects will be reviewed later and there is no clear timeframe for when they will be operational again.

Many of those affected blame the delays on the rising cost of building materials and labour, as well as a shortage of construction workers. Investment pouring into the state for a wide range of industries, including chips and automobiles, is straining the construction sector.

Suppliers also cited slower-than-expected progress on expansions at Intel and TSMC for the delays.

The fact that several suppliers have slowed their projects shows that the problem is not caused by one or two companies, but is more structural.

Three chip materials executives told Nikkei Asia that the cost of building a plant in Arizona was four or five times higher than in Asia and ‘several times’ higher than they had previously expected.

LCY Chemical CEO Vincent Liu said his company would ‘adjust the pace’ of the Arizona plant, citing rising costs. Instead of rushing to build a production facility, LCY, a supplier to TSMC, Intel and Micron, will initially ship chemicals by sea to the US to supply its US-based customers. “When it comes to chemicals, it is critical that you have economic scale to have economic efficiency,” Liu said.

Belgium’s Solvay, one of the world’s leading suppliers of high-purity hydrogen peroxide used in chipmaking, has postponed construction of its Arizona plant for later review, sources familiar with the matter said. The sources cited cost concerns as well as the longer-than-expected wait for its main customers Intel and TSMC to expand production.

Chang Chun Group, another leading producer of semiconductor-grade hydrogen peroxide, has significantly scaled back construction of its new plant in Arizona. The Taiwanese chemical group has started building part of the plant on a much smaller scale than planned. A source familiar with the matter said the costs were ‘several times’ higher than expected.

KPCT Advanced Chemicals, a joint venture between Kanto-PPC and Chemtrade, has also postponed the construction of a high-purity sulphuric acid plant in Arizona. Topco, a leading distributor of chemicals and materials, has suspended its planned logistics centre in Arizona, a company executive told Nikkei Asia.

“The key factor is that local demand does not yet require a lot of local supply. So there’s no rush for us to spend resources so quickly. … It’s not just the plant itself. We have to make some additional investments to build roads and connect water and electricity around our campus,” he said.

All five companies have made plans and purchased land in Casa Grande, southeast of Phoenix. The location is attractive because it is relatively close to the world’s two largest chipmakers: a 30-minute drive from where Intel is expanding its facilities in Chandler, and just over an hour’s drive from TSMC’s facility in northwest Phoenix.

ASIA

Pakistan’s move to strengthen ties with Central Asian Countries impossible without settling Afghan issue

Published

on

Pakistan Prime Minister, Premier Shahbaz Sharif in connection with the SCO Council of heads meeting has held a series of meetings and talks with fellow counterparts from various Central Asian Republics (CAR). Main purpose of such talks and meetings is to think of ways and means for entering into cordial diplomatic and trade links with each other. All sides agreed but they ignored the main hurdle – which lies in war-troubled Afghanistan which is in control of Taliban and these Taliban are reluctant to go along with the rest of the world and bent up on running affairs of the country according to their own interpretation of Islam.

No one can deny the fact that Afghanistan is surrounded by at least seven different countries. Most of these countries are Central Asians but beside Pakistan it also included China and Islamic Republic of Iran. Not only today when Taliban’s are in government but Afghanistan’s relations remain cordial with all these neighboring countries except Pakistan. It is ironic Pakistan is uncomfortable with Afghanistan whereas its blue-eyed Taliban are in power. Un-cordial  relations between the two neighboring countries might be a big issue before mighty junta’s at Islamabad and Kabul who remain in close links with each other, even each other’s dependents since mid 90’s.

Afghanistan remained attractive destination for traders from all Central Asian countries

Historically united India, especially its North Western regions including the present Afghanistan and Khyber Pakhtunkhwa region of Pakistan remained attractive destinations for traders and businessmen from all Central Asian countries. All such trade and traveling links between CAR and united India remained intact till the beginning of 20th century but were affected with the Soviet socialist revolution. However, despite pressures, threats and opposition from British colonialism, Afghanistan has maintained all of its trade, political and diplomatic relations till the previous 90’s. After the dismantling of the Taliban regime, former President Hamid Karzai had restored these links in 2002. With little changes and short intervals, still Taliban  continue cordial and smooth trade links with all CAR and other neighboring countries including Islamic Republic of Iran. However, position of Pakistan is different as anger and tension between Islamabad and Kabul is aggravating day by day  due to certain issues including Taliban’s determination of settling internal and external issues through their own yardsticks and rejecting demands of surrendering or extraditing banned TTP elements to Pakistan.

Pakistan wants to enter into trade business links with different CAR through Afghanistan

Pakistan after re-empowering the Taliban in Kabul had initiated efforts for entering into trade business links with different Central Asian Republics. The move remained very fruitful when trade convoys exchanged and touched its destinations on both sides in 2022 and 2023.  Besides pulses, beans, fresh fruits and other commercial goods, Pakistan received dozens of containers loaded with coal and liquid gasses. Traders and consumers from Pakistan have jubilated exploration or restoration of such trade routes. But the trade links or imports and exports between Pakistan and CAR couldn’t be groomed further due to relations with Afghanistan. Torkham and Chaman considered most busy and important corridors frequent and prolonged closure, skirmishes and even encounters between security forces and  war of words between personnel and officers from both sides are now considered  routine matters, which are definitely affecting not only trade matters between the two neighboring countries especially sabotaging all efforts aimed at strengthening Pakistan trade and business links with CAR states.

Afghanistan playing key role in South and Central Asian economy  

No one can deny the fact that Afghanistan is playing a key role in the South and Central Asian economy. Almost all regional countries, its rulers, policy makers and economists are realizing these facts but they are helpless before US lead allies, engaged in efforts aimed at establishing its own or group influence in this particular region. Though Pakistan is considered the most important tool in implementation of US lead allies policies in the region, most of its people, people from trade, business and industrial sectors and even politicians are thinking on different lines – they want and prefer cordial relations with neighboring and regional countries. And for this purpose, the voice for peace and tranquility in Afghanistan has been raised unanimously by majority from the last four decades.

Pakistan proves itself as trustworthy ally of US

Pakistan’s mighty rulers – known as the military establishment – has proved itself as a trustworthy ally of the US. Besides playing a key role in the US lead alliance, Pakistan’s certain circles made and even made the best of exploiting the situation in its favor. Pakistan through its powerful military establishment is making efforts to establish its own influence in the region. In this respect, Pakistan is eyeing on prolonged conflict in Afghanistan. Like previous Peshawar – manufactured Jehadi leaders, now Taliban are also reluctant to compromise sovereignty and solidarity of Afghanistan – which is considered the main hurdle in strengthening of regional trade links, especially trade links of Pakistan with CAR states.

In the wake of meaningless involvement in prolonged conflict and influencing Afghanistan’s internal and external affairs, Pakistan must read on the wall. On the issue of Afghanistan, Pakistan has not only lost its control over internal security but its image at global level is also at stake. Instead, remaining mum over affairs of Afghanistan, Pakistan Prime Minister Shahbaz Sharif must initiate efforts for establishing friendship with Afghanistan. Policy makers in Rawalpindi Islamabad also need to realize that the US had and is playing like masters not as a friend. Instead of remaining loyal and obedient to masters, Pakistan must hunt for friends. Finding friends could be more fruitful in strengthening regional trade, especially trade links with CAR countries, which may be helpful in settling almost economic hardships and other issues.

Continue Reading

ASIA

Chinese, Russian troops hold joint exercise targeting cross-border terrorism

Published

on

China and Russia have held a joint military exercise focusing on cross-border terrorism, amid growing concern over terrorist attacks in Moscow.

The drill was held on 25 June in a river area near the Heilongjiang Bridge linking Russia’s Blagoveshchensk and China’s Heihe, the Chinese military’s official media outlet PLA Daily reported on Tuesday.

It was the first joint counter-terrorism drill between the neighbouring countries since Russia’s intervention in Ukraine.

It came just days after terrorist attacks in Russia’s southern region of Dagestan on 23 June, in which at least 22 people were killed in shootings at two synagogues, two Orthodox churches and a police station.

In March, more than 140 people were killed in an attack on a concert hall in Moscow, the deadliest terrorist attack in Russia for almost two decades. The Khorosan branch of ISIS claimed responsibility for the attack.

According to the PLA Daily, last week’s joint exercise simulated ‘terrorists trying to cross the border’ to launch an attack.

Chinese and Russian troops used aerial reconnaissance, maritime interception and land ambush to intercept and capture the terrorists during the exercise.

The exercise, which focused on improving intelligence sharing and operational coordination, showed the “firm determination” of both militaries to take effective measures to “combat all forms of terrorism, separatism and extremism” while jointly securing border areas, the report said.

The report also said that the two sides discussed further deepening border cooperation.

This is not the first time the two countries have held joint counter-terrorism exercises. In 2019, China’s People’s Armed Police took part in an exercise with the Russian National Guard in Russia.

According to Tass, Russian Foreign Minister Sergei Lavrov reaffirmed the two countries’ ongoing cooperation in the fight against terrorism, including on multilateral platforms, during a meeting with his Chinese counterpart Wang Yi in April.

Aiming to strengthen law enforcement cooperation

Last week’s joint exercise follows an agreement between Chinese and Russian leaders during Russian President Vladimir Putin’s visit to Beijing in May to strengthen cooperation in law enforcement and defence, including by expanding joint training and exercises.

The Chinese and Russian coast guards also signed a memorandum of understanding on maritime law enforcement cooperation in April last year.

In March, China and Russia organised a naval exercise with Iran focusing on anti-piracy efforts. China and Russia also held joint naval and air exercises in the Sea of Japan, or East Sea, in July last year.

Continue Reading

ASIA

Controversial military operations and ethnic dynamics in Pakistan’s fight against terrorism

Published

on

In a recent high-level meeting, the federal government of Pakistan announced its intention to launch a new military operation against terrorist organizations. This decision is aimed at eradicating militancy under the banner of Azm-i-Istehkam. Surprisingly, the military leadership has remained silent on this proposed operation, leaving the advocacy to political figures, notably Defense Minister Khawaja Asif of the Pakistan Muslim League (PML-N).

The Pakistan People’s Party (PPP), a significant coalition partner in the federal government, has maintained a conspicuous silence on the matter. Meanwhile, despite the approval from Khyber Pakhtunkhwa’s Chief Minister Ali Amin Gandapur, factions within Pakistan Tehreek-e-Insaf (PTI) and the Sunni Ittehad Council have openly opposed the operation. This divergence in political opinion highlights the complex dynamics at play in Pakistan’s approach to counter-terrorism.

The opposition from various regional and ethnic parties, including the Pashtun Protection Movement (PTM), Pakhtunkhwa Milli Awami Party (PkMAP), and the Awami National Party (ANP), stems from deep-seated concerns about the operation’s focus and its implications. Historically, PTI and PkMAP have not been staunchly anti-Taliban. PTI’s leader, Imran Khan, has consistently opposed military actions against Taliban militants, advocating instead for dialogue. Similarly, PkMAP leader Mehmood Khan Achakzai, while ostensibly opposing terrorism, is perceived to have friendly relations with the Taliban, as evidenced by the relative safety of his party members from Taliban attacks.

Significant religious-political entities have complex stances on militancy in Pakistan

The relative safety of certain political groups, like PTM and the National Democratic Movement, from Taliban violence raises questions. Critics argue that this perceived immunity could suggest covert alliances or understandings, casting doubt on the motivations behind their opposition to the military operation.

Jamiat Ulama-e-Islam (JUI-F) and Jamaat-e-Islami (JI), both significant religious-political entities, have complex stances on militancy. JUI-F’s position has been ambiguous since the Soviet invasion of Afghanistan in 1979. In contrast, JI, having reaped substantial benefits from the Afghan war, now finds itself sidelined and is striving to reassert its relevance by attempting to align with nationalist sentiments.

The media and sections of the government, particularly those influenced by Punjabi and Urdu-speaking elites, have often portrayed the Taliban as predominantly Pashtun. This narrative has led to the proposed military operation being focused on Pashtun-majority areas, such as Khyber Pakhtunkhwa and Balochistan. Defense Minister Khawaja Asif’s statement that the operation will target these regions reinforces this perception.

Pashtun-dominated regions reject the notion that terrorism is a Pashtun phenomenon

However, leaders from Pashtun-dominated regions, like Khan Muhammad Wazir of the ANP, reject the notion that terrorism is a Pashtun phenomenon. Wazir points to the involvement of non-Pashtun militants in numerous terror attacks across Pakistan. He highlights the role of Punjabi militants in groups like the Punjabi Taliban, Lashkar-e-Jhangvi, and Jamaat-ul-Ahrar, who have orchestrated some of the deadliest attacks in recent years. Wazir’s argument underscores the ethnic diversity of militant groups in Pakistan, challenging the stereotype of the Pashtun terrorist.

Wazir’s emotional plea for an operation starting in Punjab, rather than Pashtun areas, aims to shift the focus to the diverse origins of militancy. He names several key figures from Punjab involved in terrorist activities, such as Tariq Lahori of Daesh and Maulana Qasmi of Jamaat-ul-Ahrar. By highlighting these figures, Wazir seeks to demonstrate that terrorism in Pakistan is not confined to any single ethnic group.

Doubt on the narration of the proposed military operation “Azm-i-Istekham”

The insistence on a military operation in Pashtun regions, driven by a media narrative dominated by Punjabi and Urdu-speaking elites, risks alienating the Pashtun community. Wazir’s call for international intervention by entities like China, the United States, Russia, the United Nations, and the Organization of Islamic Cooperation (OIC) underscores the severity of this perceived ethnic targeting. If the government and media continue to frame terrorism as a predominantly Pashtun issue, it may lead to increased ethnic tensions and further marginalize the Pashtun population.

The proposed military operation “Azm-i-Istehkam” and the political dynamics surrounding it reveal deep-seated ethnic and regional tensions within Pakistan. While the operation aims to eradicate terrorism, its focus on Pashtun areas risks reinforcing harmful stereotypes and overlooking the broader ethnic diversity of militant groups. A more equitable approach, recognizing the involvement of non-Pashtun militants and addressing the root causes of militancy across all regions, is crucial for fostering national unity and effectively combating terrorism. Only through such an inclusive strategy can Pakistan hope to achieve lasting peace and stability.

Continue Reading

MOST READ

Turkey