“The largest semiconductor manufacturer on the planet agreed to open factories in the U.S. instead of abroad. The company wants the government to pick up the tab for the difference in cost, even as it postpones production.”
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“In a January 2023 earnings call, TSMC Chief Financial Officer Wendell Huang said that while he couldn’t give an exact number for the financial discrepancy between building in the U.S. and Taiwan, “the major reason for the cost gap is the construction cost of building and facilities, which can be 4 to 5x greater” in the U.S.
Of course, part of that gap can be explained by factors like the difference in the cost of living—by one estimate, over twice as much in the U.S. as in Taiwan. But in November 2022, a month before Biden announced the project, TSMC wrote in a public response to questions from the Commerce Department that it doesn’t “see access to capital as a significant barrier to growth in the US”—rather, specific factors making the project more expensive included “federal regulatory requirements that increase project scope and cost.”
Rather than forking over billions of dollars to a single company, the Biden administration should take steps to ease regulatory burdens on expanding companies. Similarly, plenty of firms could benefit from a greater number of high-skilled workers, like those proficient in science, technology, engineering, and mathematics (STEM) fields. And yet foreign nationals who graduate in STEM fields from American universities face near-impossible challenges to stay in the country and most end up going elsewhere. Congress could help that situation by raising the number of green cards that can be issued annually.
With TSMC’s delay, Biden and Congress have an opportunity. TSMC admits that its issues are bureaucratic, not financial, so there’s no need to shovel more money at a wealthy company. Instead, lawmakers should get rid of cumbersome regulations and create a more welcoming environment for both businesses and workers.”
“Niger, a key U.S. ally in Western Africa, is undergoing a political crisis that has raised questions about the United States’ role in fostering foreign militaries in the name of fighting terrorism.
On July 26, Niger’s presidential guards, headed by Gen. Abdourahmane Tchiani, detained Mohamed Bazoum, Niger’s democratically-elected president, and declared “an end to the regime that you know due to the deteriorating security situation and bad governance.” The new junta, officially titled the National Council for the Safeguard of the Homeland, consolidated its control by suspending the constitution, dissolving all government institutions, and closing Niger’s borders.”
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“The U.S. struck a similar tune as ECOWAS and the E.U., condemning Bazoum’s overthrow and calling for the restoration of Niger’s democracy while also suspending partnered activities with the Nigerien military. “We strongly condemn any effort to detain or subvert the functioning of Niger’s democratically elected government, led by President Bazoum,” said U.S. National Security Adviser Jake Sullivan in a statement.
But unlike ECOWAS and the E.U., the U.S. has neglected to call the overthrow a “coup” to avoid the legal ramifications of that declaration. According to Section 7008 of the annual Department of State, Foreign Operations, and Related Programs Appropriations Act, the U.S. is prohibited from sending foreign aid “to the government of any country whose duly elected head of government is deposed by military coup d’état or decree,” with an exception if the aid “is in the national security interest of the United States.””
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“The Biden administration’s reluctance to label the overthrow a coup is unsurprising considering the United States’ significant security commitment to Niger. Presently, Niger hosts 1,100 U.S. troops, an increase of 900 percent since 2013. Those troops train and support Nigerien soldiers and run a $110 million drone base, which the Nigerien junta has restricted. The U.S. has invested $158 million in arms sales and $122 million in security assistance to Niger since the Trump administration began.
“The U.S. has wanted to have a role in West Africa largely because of great power competition. Because of that, Niger is one of a few countries that receive a lot of U.S. military assistance,” says Jordan Cohen, a foreign policy analyst at the Cato Institute. “The U.S. is unlikely to call it a coup because once it does that, that assistance has to freeze.””
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“”Maybe the new government tries to cozy up to China, in which case I think the U.S. probably does cut security aid, but if the military is going to continue working with the United States, everybody’s going to forget about this and the aid will continue,” suggests Cohen.
Egypt provides a model for a junta that remained in the good graces of the United States. After Egyptian President Mohamed Morsi was overthrown by the military in 2013 (which the U.S. never officially called a coup), the Obama administration suspended “only a couple hundred million dollars in U.S. military aid” while still maintaining the majority of the aid. In 2015, the administration restored Egypt’s aid to fight the Islamic State.”
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“It’s also not clear that U.S. security aid benefits regional security, given the tendency for the U.S. military to train future coup leaders. “The Niger coup marks yet another occasion in which U.S.-trained military personnel—the officers that we are educating and training—have sponsored or directly supported an antidemocratic coup,” noted Emma Ashford, a senior fellow with the Reimagining U.S. Grand Strategy program at the Stimson Center, in an interview with Foreign Policy. “These aren’t just low-level troops who’ve been trained in combat techniques. These are often coup leaders, the cream of the crop of foreign militaries, trained here in the United States at our top service academies.”
“Part of what the U.S. spending on security assistance has done is fund hundreds of billions into the security forces, and that has contributed to this balance of powers in these governments,” adds Savell. “They have essentially given both military and security forces more power and more clout in comparison to other parts of the government.””
“Biden declared a new national emergency and immediately used it as the justification for creating a new screening system that will limit Americans’ ability to invest overseas.
The new rules, which have been in development since last year, will prohibit private equity and venture capital firms from investing in China-based businesses working in a variety of high-tech fields”
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“Narrow or not, this is the first time that the U.S. government has targeted outgoing investments in such a manner.”
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“There are only two other countries—South Korea and Taiwan—that have outbound investment screening systems”
“On July 7, Turkish President Recep Tayyip Erdogan agreed to “ensure ratification” of Sweden’s application to join NATO in Turkey’s parliament, according to NATO Chief Jens Stoltenberg.
This deal comes amid additional reports of acquiescence to Turkish demands, including Swedish support for the country’s European Union (E.U.) accession process and the U.S. working to provide Turkey with $20 billion worth of F-16s and 79 modernization kits for existing aircraft.
Joining NATO requires each of its 30 member states to vote in favor of Sweden’s accession, allowing Turkey to hold the process hostage.
“Turkey has a weak hand to play in all of this, but they’ve tried to play it to the point where they can extract the most out of this situation,” says James Ryan, director of research and Middle East programs at the Foreign Policy Research Institute. “I really think there’s an understanding between Biden and Erdogan that it’s a quid pro quo, and probably the Swedish accession will go through and the sale will go through shortly thereafter.”
Since confirming their intention to join NATO over a year ago, Sweden has had to conform to Turkey’s complaints—which include claims that Sweden harbors member of the Kurdistan Worker’s Party (PKK), issues with anti-Islam protests in Sweden, and the lack of arms exports—to gain its support for joining the alliance.
To accommodate these concerns, Sweden has passed a new stricter anti-terror law, extradited a supporter of the PKK, and reversed a ban on exporting military equipment to Turkey. “Sweden has amended its constitution, changed its laws, significantly expanded its counterterrorism cooperation against the PKK, and resumed arms exports to [Turkey],” said Stoltenberg in a press release.”