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Alright, let's get this straight. We're patting ourselves on the back for having the "best-performing semiconductor stocks," while simultaneously selling the equipment that lets China build its own damn chips? Give me a break.
The Numbers Game
So, Micron's up 126%. Rambus, Lam Research, Broadcom... everyone's making bank. Good for them, I guess. But who are they selling to? Oh, right, everyone. Including the guys who want to eat our lunch in the long run.
The article boasts about a lack of competition in some sectors, like ASML's monopoly on EUV lithography. It's hard to invest in the wrong photolithographer when there's only one major player, they say. Yeah, and it's hard to stop that one player from selling tech to our rivals when profits are on the line. What a shocker.
And of course, there's the AI angle. NVIDIA's GPUs are hot because AI is the new gold rush. We're all so busy trying to build the next ChatGPT that we're not even thinking about who's going to use it against us. Maybe I'm just being paranoid, but does anyone else see a problem here?
Geopolitics and Greed
Then comes the geopolitical risk. Taiwan, the linchpin of the whole damn industry, is a potential flashpoint. China might invade, and suddenly our semiconductor supply chain is kaput. But hey, at least we made some sweet profits in the meantime, right?
The Select Committee on China's investigation lays it out: American and allied companies are boosting the CCP's semiconductor industry. ASML, Tokyo Electron, Applied Materials, KLA, Lam Research... they're all in on it. And the numbers are staggering. TEL got 44% of its revenue from China in 2024. Lam Research, 42%. It's like selling shovels to your own grave diggers. According to a New Investigation Reveals American and Allied Companies Boosted the CCP's Semiconductor Industry, Fueled the PRC's Military Ambitions and Human Rights Abuses, these companies are growing their profits at the expense of U.S. national security.
Moolenaar says these companies are growing their profits at the expense of U.S. national security. Krishnamoorthi says it makes no sense to sell the CCP the chips they need to modernize their military. You think?
But here's the kicker: Dutch and Japanese firms have increased their revenues from PRC entities as the U.S. imposed controls. So, we try to put the brakes on, and our "allies" just pick up the slack. Some allies.
Meanwhile, the CCP is stockpiling lithography equipment. Preparing for the future where they don't need us anymore. Smart.
The Real Cost
The investigation highlights the threats: military applications, trade dominance, economic security, human rights abuses. The CCP uses AI and high-performance computing to violate human rights. We know this. We've seen the reports. And we're still helping them build the tools to do it. Offcourse, it's all about the money.
The recommendations are the usual suspects: align allied export controls, expand country-wide controls, restrict exports of components, create a whistleblower program, increase resources for enforcement. Blah, blah, blah. It all sounds good on paper, but will it actually happen? Or will we just keep chasing short-term profits while our long-term security goes down the drain?
They expect us to believe this nonsense, and honestly...
Is Anyone Actually Surprised?
This ain't about semiconductors, it's about the whole damn system. We're so obsessed with quarterly earnings and shareholder value that we're willing to sell out our own future. And honestly, I don't see it changing anytime soon. Maybe I'm just too cynical for my own good.