Daily News Brief

August 9, 2023

Top of the Agenda

The plant will mark the third (Reuters) for Taiwan Semiconductor Manufacturing Company (TSMC) outside of its manufacturing bases of Taiwan and China, and comes after both Germany and the European Union (EU) recently announced billions in subsidies to advance its semiconductor production. Though Europe has shied away from a broader trade and investment deal with Taiwan, the island’s economy minister said the new plant will increase political engagement (Reuters) between Taiwan and the EU. 

Germany’s government will reportedly spend more than $5.4 billion on the plant, and three European industrial firms are set to control 10 percent each (NYT), while TSMC will control 70 percent. Though Germany also recently secured commitments from technology giant Intel to build two chip plants in the country, it is experiencing a shortage of the labor needed to staff them. Berlin aims for the TSMC plant to play a central role in bolstering the domestic semiconductor production its automotive industry needs to remain globally competitive. 

Analysis

“Political leaders in the United States and its allies in trade battles with China have pushed TSMC to build production facilities outside Taiwan,” the New York Times’ John Liu and Paul Mozur write.

“A little over three years ago, Taiwan Semiconductor Manufacturing Co. was among the world’s most geographically concentrated technology giants with almost the entirety of its capacity within a 300-mile radius. Now, it is on the verge of becoming one of the most globally diversified chipmakers,” Bloomberg’s Tim Culpan writes.

For the Net Politics blog, Chris Miller and CFR expert David Sacks discuss the global battle over semiconductor production.  

Pacific Rim

New data on consumer and producer prices in July show that China’s economy is slipping into deflation (FT) for the first time since 2021, when it was locked down for the COVID-19 pandemic. Chinese trade and property sector numbers have also slowed.

South and Central Asia

Prime Minister Shehbaz Sharif said he would request the dissolution (Dawn) of Pakistan’s legislature today. Though this move typically triggers elections within ninety days, they are expected to be delayed until March of next year due to a redrawing of congressional districts.

India: Opposition leader Rahul Gandhi condemned Prime Minister Narendra Modi’s leadership today, saying the government could have reduced ethnic violence in the state of Manipur by sending in the military (AP). Gandhi was reinstated as a lawmaker this week after India’s top court overturned defamation charges against him.

Middle East and North Africa

The six-month agreement will allow UN aid to enter (AFP) opposition-held areas from Turkey. More than four million people live in the opposition-held territories in northern and northwestern Syria.

China/UAE: The United Arab Emirates (UAE) national oil company said it will provide jet fuel (Al-Monitor) to more than a dozen airports in China, underscoring growing ties between the two countries and aiding Abu Dhabi’s efforts to fulfill the rising global energy demand. 

Sub-Saharan Africa

More than four million people have been driven out of their homes (AP) since conflict between the Sudanese army and rival paramilitary forces broke out in April, over 884,000 of whom have left the country, a spokesperson for the UN refugee agency said. Sudan’s government said in June that more than three thousand people have been killed in the conflict, but activists and doctors say the real toll is likely far higher. 

Uganda: The World Bank announced it is suspending funding (East African) for new projects in Uganda over an anti-homosexuality law that the government signed in May, saying it “fundamentally contradicts” the Bank’s values. Funding will remain frozen until Uganda passes measures to protect sexual minorities. 

This article by CFR’s Mariel Ferragamo and Kali Robinson explores Africa’s struggle toward inclusive LGBTQ+ laws.

Europe

The United Kingdom (UK) announced it will support the establishment (Guardian) of a new Turkish facility aimed at tackling migrant smuggling. In June, the Guardian reported that the UK had diverted more than $3.8 million from overseas development aid to pay Turkey for their help in preventing migrants from reaching the UK.

Russia: Officials said Russian air defenses shot down two drones (NYT) headed for Moscow overnight and that Ukraine was responsible. Ukrainian officials did not immediately comment. Russian officials have reported a series of attempted drone attacks on Russian soil in recent days.

Americas

Dairo Antonio Úsuga David, also known as “Otoniel,” pled guilty (CNN) yesterday to leading the drug trafficking group the Gulf Clan and participating in a drug importing conspiracy. Colombian police captured him in 2021 and he was later extradited to the United States.

South America: Eight countries home to the Amazon Rainforest agreed to cooperate on forest protection at a rain forest summit yesterday, but Bolivia and Venezuela failed to sign on (NYT) to a pledge to end deforestation by 2030. The other six countries have committed to the target. 

This InfoGuide looks at deforestation in Brazil’s Amazon.

United States

In a 5-4 vote, the court overruled a Texas judge’s decision (NBC) to block new federal government restrictions on the sale of gun-making kits online. Known as “ghost guns,” they are easy to assemble at home and difficult for law enforcement to trace.

This Backgrounder by CFR’s Jonathan Masters compares gun policies around the world. 

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