MADNESS AND INSANITY IN A TIME OF JOE BIDEN

[thelivyjr]

THE CAPE CHARLES MIRROR SEPTEMBER 6, 2022 AT 5:05 PM

Paul Plante says:

SEPTEMBER 6, 2022 AT 5:05 PM

And are there real-world consequences for real working class people in America when all these “GREEN DREAMS” and GRANDIOSE SCHEMES for a GREEN ECONOMY of shallow thinkers like Hussein Obama and Joe Biden who are incapable, due to towering arrogance and megalomania, of seeing that their false promises of “good paying jobs” have real-world consequences for those whose lives they have disrupted when their schemes and dreams go BUST?

Let’s go back in time to circa 2018, where we have this from the Washington Post on that very subject, to wit:

LORDSTOWN, Ohio — Scott Mezzapeso had to do something last month he never imagined: call his ex-wife and warn her that he might not be able to pay child support on time.

Mezzapeso has a tattoo of his daughter on his left arm and rarely misses her high school softball games, but money has become extremely tight.

General Motors is shuttering its plant here, and Mezzapeso is one of roughly 5,400 casualties.

Mezzapeso earned $22 an hour with good benefits at Magna, a GM supplier that made seats for the Chevy Cruze, but he was laid off last summer as the auto giant scaled back Cruze production and suppliers did the same.

Now he makes $11 an hour working part time at Bruno Bros. Pizza, the only job he has found after months of sending out his résumé.

end quotes

Meanwhile if we check out the net worth of every one of Joe Biden’s cabinet members, they are well in excess of a million dollars.

If Joe’s green dreams go bust today, because like with Fisker and Solyndra back when, they are ill-conceived and not at all well thought out, being based on Joe’s belief in his infallibility of judgment that doesn’t require any thinking beyond Joe’s belief that it is the right thing to do, and yet more American workers get tossed out of their employment, because the federal government will no longer subsidize it, will any of his cabinet members even notice?

Will their families have to go without meals, I wonder?

Will Joe?

http://www.capecharlesmirror.com/news/o ... ent-686714

[thelivyjr]

THE CAPE CHARLES MIRROR SEPTEMBER 8, 2022 AT 5:25 PM

Paul Plante says:

Ultranationalism or extreme nationalism is an extreme form of nationalism in which a country asserts or maintains detrimental hegemony, supremacy, or other forms of control over other nations (usually through violent coercion) to pursue its specific interests.

http://www.capecharlesmirror.com/news/o ... ent-687343

[thelivyjr]

THE CAPE CHARLES MIRROR SEPTEMBER 9, 2022 AT 5:11 PM

Paul Plante says:

ultranationalism: extreme devotion to or advocacy of the interests of a nation, especially regardless of the effect on any other nations.

*******************************************************************************

Can the isolationist policies of an ultra-nationalist fool destroy the economy of the nation the ultra-nationalist fool is the supposed leader of?

Can the blindness of the ultra-nationalist fool to the repercussions of the fool’s ultra-nationalist policies redound (come back upon; rebound on; as in “his sins redounded upon the heads of his people”) upon those who have him as their leader?

Are we about to find out that answer in spades?

Can Joe Biden single-handedly bring down America with his stupid ultra-nationalism?

Can Joe Biden take on the rest of the world to make them small in his bid to Make America Great Again, by isolating America from the rest of the world to make everything here?

And does the world really need us, or can it make out quite fine on its own without us?

Let’s see what’s brewing in that regard:

Reuters

“Analysis: U.S. ban on Nvidia, AMD chips seen boosting Chinese rivals”

By Jane Lanhee Lee and Stephen Nellis

September 8, 2022

SAN FRANCISCO, Sept 8 (Reuters) – The U.S. ban on exports to China of Nvidia and AMD’s flagship artificial intelligence chips will create new business opportunities for domestic startups jockeying for a piece of China’s fast-growing data center chip market, industry executives and analysts told Reuters.

The ban is part of a longer effort by the U.S. government to crack down on U.S. contributions to Chinese artificial intelligence and high-performance computing, or supercomputing.

Last year, U.S. officials put seven Chinese supercomputing entities on an economic blacklist, and last week they banned Nvidia and AMD’s chips from export to China “to keep advanced technologies out of the wrong hands.”

On Thursday, an independent group that measures artificial intelligence speeds published new data that can help back up the claims of little-known Chinese startup Shanghai Biren Intelligent Technology Co that its latest chip has bested the performance of one of the high-end chips banned by the U.S. government.

The milestone is viewed as an opening for Chinese domestic chip companies to service Chinese customers cut off from access to U.S. chips, experts said.

The promising performance rankings come after years of financing and development from Chinese startups and venture firms, including several investors from the U.S., to create domestic alternatives to Nvidia Corp and Advanced Micro Devices Inc chips.

The rise of AI chip startups in China could upset plans by the U.S. to slow down China’s development of computing tools needed for military applications such as designing nuclear weapons.

Biren, founded by alumni of Chinese tech giant Alibaba and Nvidia, has publicly said it would focus on selling its BR100 chip to private data center and cloud customers.

Jack Dongarra, a distinguished professor of computer science who helps lead the Top500 ranking of the fastest supercomputers says he’s seen this scenario play out before.

“The U.S. embargoed Intel chips from going to specific places in China that are and were developing high performance computers,” he said.

“The result was that China designed its chips for its supercomputers.”

CCS Insight chip analyst Wayne Lam said Biren could be in for a “success story, having demonstrated this capability and now having this business opportunity fall on them”.

Also active in developing Nvidia alternatives are Chinese firms like Cambricon, Alibaba Group’s PingTouGe, Iluvatar CoreX, Denglin Technology, Moore Threads, Vastai Technologies and MetaX.

Data firm PitchBook shows that those top startups alone have raised $2.5 billion in recent years, including from Shanghai government-backed fund Shanghai Guosheng Group and Hillhouse Capital, which counts several U.S. pension funds and Yale University as limited partners.

Other investors include the Chinese entities of big-name Silicon Valley venture capital firms like Sequoia China and Lightspeed China Partners.

end quotes

So goofy old Joe Biden thinks that he is going to crush the Chinese by shutting them out of access to U.S. made products?

Does Joe think that is going to cripple them, somehow?

What a fool!

But, hey, he is the president!

So he gets to say who wins and who loses, and in this case, I don’t see the losers being the Chinese.

So who does that leave left?

http://www.capecharlesmirror.com/news/o ... ent-687343

[thelivyjr]

THE CAPE CHARLES MIRROR SEPTEMBER 10, 2022 AT 4:08 PM

Paul Plante says:

And before we can move along here as we continue to analyze the ramifications to our American economy as a result of Joe Biden’s ultra-nationalism and isolationism here, as well as his authoritarianism, we need to get this following into the record as essential background as Joe pursues his “ULTRA-MAGA GREAT LEAP FORWARD” to make America into the chip manufacturing capital of the world, to wit:

The Washington Post

“Post Politics Now: ‘Future of the chip industry is going to be made in America,’ Biden says in Ohio”

John Wagner, Mariana Alfaro

9 September 2022

Today, President Biden, during a visit to the battleground state of Ohio, pledged that the $280 billion Chips and Science Act, passed by Congress in July, would transform the U.S. semiconductor industry.

“The industrial Midwest is back,” Biden said as he spoke at a groundbreaking ceremony for Intel’s new $20 billion manufacturing facility near Columbus, Ohio.

“Folks, the future of the chip industry is going to be made in America,” Biden said at an event that drew politicians from both parties, including Ohio Gov. Mike DeWine (R) and Sen. Rob Portman (R-Ohio), as they celebrated a bipartisan legislative achievement and a major economic development project for the region.

http://www.capecharlesmirror.com/news/o ... ent-689338

[thelivyjr]

THE CAPE CHARLES MIRROR SEPTEMBER 12, 2022 AT 10:46 PM

Paul Plante says:

The ultra-nationalist Joe Biden declared economic war on Russia, and the result is the cratering of the economies of Joe’s hapless allies in Europe.

Now the ultra-nationalist Joe Biden is escalating his wars against other nations whose economies he wants to destroy by waging economic war against China, as we have been following in here, as Joe works to impose a one party system of government in America where control is maintained by, among other factors, governmental regimentation of industry and finance.

With respect to the economic warfare the ultra-nationalist Joe Biden is waging against China, Reuters gives us the latest in this article titled “Exclusive: Biden to hit China with broader curbs on U.S. chip and tool exports” by Karen Freifeld and Alexandra Alper on September 12, 2022, as follows:

WASHINGTON, Sept 11(Reuters) – The Biden administration plans next month to broaden curbs on U.S shipments to China of semiconductors used for artificial intelligence and chipmaking tools, several people familiar with the matter said.

The Commerce Department intends to publish new regulations based on restrictions communicated in letters earlier this year to three U.S. companies — KLA Corp, Lam Research Corp and Applied Materials Inc, the people said, speaking on the condition of anonymity.

The letters, which the companies publicly acknowledged, forbade them from exporting chipmaking equipment to Chinese factories that produce advanced semiconductors with sub-14 nanometer processes unless the sellers obtain Commerce Department licenses.

The rules would also codify restrictions in Commerce Department letters sent to Nvidia Corp and Advanced Micro Devices last month instructing them to halt shipments of several artificial intelligence computing chips to China unless they obtain licenses.

Some of the sources said the regulations would likely include additional actions against China.

The regulations could potentially apply to companies trying to challenge Nvidia and AMD’s dominance in artificial intelligence chips.

Intel Corp and startups like Cerebras Systems are targeting the same advanced computing markets.

Intel said it is closely monitoring the situation, while Cerebras declined to comment.

One source said the rules could also impose license requirements on shipments to China of products that contain the targeted chips.

Dell Technologies, Hewlett Packard Enterprise and Super Micro Computer make data center servers that contain Nvidia’s A100 chip.

Dell and HPE said they were monitoring the situation, while Super Micro Computer did not respond to a request for comment.

‘CHOKE POINT’

The planned action comes as the President Joe Biden’s administration has sought to thwart China’s advances by targeting technologies where the United States still maintains dominance.

“The strategy is to choke off China and they have discovered that chips are a choke point.”

“They can’t make this stuff, they can’t make the manufacturing equipment,” said Jim Lewis a technology expert at the Center for Strategic and International Studies.

“That will change.”

U.S. officials have reached out to allies to lobby them to enact similar policies so that foreign companies would not be able to sell technology to China that American firms would be barred from shipping, two of the sources said.

http://www.capecharlesmirror.com/news/o ... ent-689338

[thelivyjr]

THE CAPE CHARLES MIRROR SEPTEMBER 15, 2022 AT 5:59 PM

Paul Plante says:

And as the ultra-nationalist autocrat Joseph Robinette Biden, Jr. out of an extreme sense of paranoia that China is going to win the race for the 21st Century, which race does not exist anywhere outside of Joe’s scrambled mind, continues closing off outside markets to American chip manufacturers whose business models were built around growing foreign markets, is he going to use OUR tax dollars to compensate them for lost business?

Or is he going to find them new markets to replace China, maybe Uganda, for example, or Somalia?

In the meantime, since we are on the subject of Joe’s extreme paranoia about China winning the race for the 21st Century, when it is really Joe’s turn for it, we have from Reuters, as follows:

“U.S. investments in foreign chip firms a potential concern, White House says”

By Alexandra Alper

September 14, 2022

WASHINGTON, Sept 14 (Reuters) – U.S. investment in foreign chip companies is a potential concern for the Biden administration, a White House official said on Wednesday, but he stressed it has not yet made a final decision on a potential mechanism regulating U.S. investments in China.

National Security Council official Peter Harrell heralded the administration’s efforts to kick-start U.S. chipmaking with $52 billion in subsidies through a recent law and its export control policies, which have sought to curb shipments of specialized chips and chipmaking tools to China.

Sources familiar with the matter say the White House has been working on an executive order that would allow the U.S. government to review and block certain American investments in high-tech sectors abroad, especially in China, which could harm U.S. national security.

end quotes

Given OUR history, this is so ridiculous, but oh so very Joe Biden, and here I am referring back in time to March 9, 2000 and the Full Text of Bill Clinton’s Speech on China Trade Bill on March 8 at the Paul H. Nitze School of Advanced International Studies of the Johns Hopkins University, as recorded by the Federal News Service, a transcription company, which policies the ultra-nationalist autocrat Biden and his team of mouth-breathers and bottom feeders and lickspittles and sycophants are overturning out of Joe’s abject fear of losing the race for the 21st Century, to wit:

PRESIDENT CLINTON: I also want to say, President Brody and Dean Wolfowitz, how much I appreciate the involvement of Johns Hopkins and the School for Advanced International Studies in China, in particular, at this moment in history, and for giving me the chance to come here and talk about what is one of the most important decisions America has made in years.

Last fall, as all of you know, the United States signed the agreement to bring China into the W.T.O. on terms that will open its market to American products and investments.

Again, I want to emphasize what has already been said.

Congress will not be voting on whether China will join the W.T.O.

Congress can only decide whether the United States will share in the economic benefits of China joining the W.T.O.

A vote against P.N.T.R. will cost America jobs as our competitors in Europe, Asia and elsewhere capture Chinese markets that we otherwise would have served.

end quotes

And pay strict attention to that last sentence about “as our competitors in Europe, Asia and elsewhere capture Chinese markets that we otherwise would have served,” because that is as true today as it was back then, even if these morons that comprise the Biden Regime are unaware of it, due to arrogance which blinds them to reality.

Getting back to Bill Clinton in 2000, he continues as follows, and note that unlike the paranoid Biden, Bill Clinton did not fear China would win the race for the 21st Century, precisely because Bill knew the destructive nature of such a race, and wished to avoid it where the ultranationalist autocrat Biden actively seeks conflict and new enemies to add to his long list of enemies of America, to wit:

Supporting China’s entry into the W.T.O., however, is about more than our economic interests; it is clearly in our larger national interest.

end quotes

So before it was against our national interests, it was in our national interests, which again takes us back to Bill, to wit:

It represents the most significant opportunity that we have had to create positive change in China since the 1970’s, when President Nixon first went there, and later in the decade when President Carter normalized relations.

I am working as hard as I can to convince Congress and the American people to seize this opportunity.

For a long time now, the United States has debated its relationship with China.

Through all the changes, particularly of the last century, and like all human beings everywhere, we see this relationship through the prism of our own experience.

In the early 1900’s, most Americans saw China either through the eyes of traders seeking new markets, or missionaries seeking new converts.

During World War II, China was our ally; during the Korean War, our adversary.

At the dawn of the Cold War, when I was a young boy beginning to study such things, it was a cudgel in a political battle: “Who lost China?”

Later it was a counterweight to the Soviet Union, and now, in some people’s eyes, it’s a caricature.

Will it be the next great capitalist tiger, with the biggest market in the world, or the world’s last great communist dragon and a threat to stability in Asia?

Through all the changes in China and the changes in our perceptions of China, there has been one constant.

We understand that America has a profound stake in what happens in China and how China relates to the rest of the world.

That’s why, for 30 years, every president, without regard to party, has worked for a China that contributes to the stability of Asia, that is open to the world, that upholds the rule of law at home and abroad.

Of course, the path that China takes to the future is a choice China will make.

We cannot control that choice; we can only influence it.

But we must recognize that we do have complete control over what we do.

We can work to pull China in the right direction, or we can turn our backs and almost certainly push it in the wrong direction.

end quotes

And there is exactly what this idiot Biden is doing, which once again takes us back to the rational counterpoint of Bill Clinton, to wit:

The W.T.O. agreement will move China in the right direction.

It will advance the goals America has worked for in China for the past three decades.

And of course, it will advance our own economic interests.

Economically, this agreement is the equivalent of a one-way street.

It requires China to open its markets — with a fifth of the world’s population, potentially the biggest markets in the world — to both our products and services in unprecedented new ways.

All we do is to agree to maintain the present access which China enjoys.

Chinese tariffs, from telecommunications products to automobiles to agriculture, will fall by half or more over just five years.

For the first time, our companies will be able to sell and distribute products in China made by workers here in America without being forced to relocate manufacturing to China, sell through the Chinese government, or transfer valuable technology — for the first time.

We’ll be able to export products without exporting jobs.

Meanwhile, we’ll get valuable new safeguards against any surges of imports from China.

We’re already preparing for the largest enforcement effort ever given for a trade agreement.

If Congress passes P.N.T.R., we reap these rewards.

If Congress rejects it, our competitors reap these rewards.

Again, we must understand the consequences of saying no.

If we don’t sell our products to China, someone else will step into the breach, and we’ll spend the next 20 years wondering why in the wide world we handed over the benefits we negotiated to other people.

end quotes

And wow, people, talk about Bill Clinton looking into the future and seeing an idiot like Joe Biden coming along to undo all that effort and thereby hand over the benefits negotiated by people like Bill Clinton to other people in other countries because of Joe Biden’s ultra-nationalistic policies.

http://www.capecharlesmirror.com/news/o ... ent-690873

[thelivyjr]

THE CAPE CHARLES MIRROR OCTOBER 7, 2022 AT 5:57 PM

Paul Plante says:

And here we are back to this existential question confronting us all as American citizens, as we watch Joe Biden sending OUR national debt through the ceiling, to wit: So what does somebody really, really smart and a real gosh-darn genuine expert on fiscal matters and economics like Joe Biden do when a big chip company like Micron Technology cuts its current-quarter revenue forecast and warns of a negative free cash flow in the coming three months as customer inventories pile up amid waning demand for chips used in PCs and smartphones?

If you said, SPEND GOBS OF TAXPAYER DOLLARS TO FLOOD THE MARKET WITH EVEN MORE CHIPS, you, too are a rocket scientist in economics like Joe Biden, which takes us to Reuters for more of the reality that Joe Biden is unaware of because it is happening outside of the bubble of unreality he lives in where everything is possible and all Joe has to do is snap his fingers and it will happen, because it has to happen, because Joe is the president who makes things happen, so it better happen, or else, to wit:

Reuters

“AMD revenue warning signals deep chip slump; shares dive 4%”

By Yuvraj Malik and Jane Lanhee Lee

October 6, 2022

Oct 6 (Reuters) – Chipmaker Advanced Micro Devices Inc on Thursday provided third-quarter revenue estimates that were about a billion dollars less than previously forecast, signaling the chip slump could be much worse than expected.

AMD shares dropped 4% in after hours trading, dragging down shares of Nvidia Corp and Intel Corp by over 2%.

“The PC market weakened significantly in the quarter,” Chief Executive Officer Lisa Su said in a statement, adding that macroeconomic conditions drove PC demand lower than expected.

The Philadelphia Semiconductor Index, which tracks prices of major silicon-producing and allied businesses, has fallen 36.4% this year so far, compared to a 41.2% rise in 2021.

The company said it expects third-quarter revenue of about $5.6 billion.

That compares with its forecast in August of $6.7 billion, plus or minus $200 million.

AMD is the latest chipmaker to be hit by the sector’s slump.

Last week memory chip maker Micron Technology warned of tougher times and said it was cutting its capex investments in fiscal 2023 by over 30% to a total of $8 billion.

Nvidia Corp and Intel Corp both delivered much worse than expected earnings in their latest reports.

http://www.capecharlesmirror.com/news/o ... ent-699732

[thelivyjr]

THE CAPE CHARLES MIRROR OCTOBER 8, 2022 AT 6:03 PM

Paul Plante says:

According to Encyclopedia Britannica, the term “economic warfare” means the use of, or the threat to use, economic means against a country in order to weaken its economy and thereby reduce its political and military power.

Joe Biden has been waging economic warfare against Putin and Russia for some time now, trying to effect those goals, and only managing to destroy the economies of his hapless allies instead, and now, as if that is not enough, Joe is expanding his economic warfare to China, as we see in a Reuters article titled “U.S. aims to hobble China’s chip industry with sweeping new export rules” by Stephen Nellis, Karen Freifeld and Alexandra Alper on October 7, 2022, to wit:

Oct 7 (Reuters) – The Biden administration on Friday published a sweeping set of export controls, including a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. equipment, vastly expanding its reach in its bid to slow Beijing’s technological and military advances.

end quotes

Going back to economic warfare, because in this time of the “ULTRA MAGA BUILD AMERICA BACK BETTER BY DESTROYING THE COMPETITION” policy of the American autocrat Joseph Robinette Biden, Junior, we truly need to understand the concept, economic warfare also includes the use of economic means to compel an adversary to change its policies or behaviour or to undermine its ability to conduct normal relations with other countries, with some common means of economic warfare being trade embargoes, boycotts, sanctions, tariff discrimination, the freezing of capital assets, the suspension of aid, the prohibition of investment and other capital flows, and expropriation.

As American autocrat Joe Biden is doing with Russia, and now China, countries engaging in economic warfare, that being Joe Biden, seek to weaken an adversary’s economy, that being Russia, and now China, by denying the adversary access to necessary physical, financial, and technological resources or by otherwise inhibiting its ability to benefit from trade, financial, and technological exchanges with other countries.

Economic warfare consisting of blockades and the interception of contraband among belligerents has been practiced since before the Peloponnesian War (431–404 BC) in ancient Greece.

In modern times, its uses have broadened to include putting pressure on neutral countries from which enemy countries could obtain supplies and denying potential enemies goods that might contribute to their war-making ability.

The effectiveness of economic warfare depends on a number of factors, including the capacity of the adversary to produce the restricted goods internally or to acquire them from other countries.

Which brings us back to Reuters for more on Joe Biden’s economic war with China, to wit:

The raft of measures could amount to the biggest shift in U.S. policy toward shipping technology to China since the 1990s.

If effective, they could hobble China’s chip manufacturing industry by forcing American and foreign companies that use U.S. technology to cut off support for some of China’s leading factories and chip designers.

“This will set the Chinese back years,” said Jim Lewis, a technology and cybersecurity expert at the Center for Strategic and International Studies (CSIS), a Washington D.C.-based think tank, who said the policies harken back to the tough regulations of the height of the Cold War.

“China isn’t going to give up on chipmaking … but this will really slow them (down).”

In a briefing with reporters on Thursday previewing the rules, senior government officials said many of the measures were aimed at preventing foreign firms from selling advanced chips to China or supplying Chinese firms with tools to make their own advanced chips.

They conceded, however, that they had not secured any promises that allied nations would implement similar measures and that discussions with those nations are ongoing.

“We recognize that the unilateral controls we’re putting into place will lose effectiveness over time if other countries don’t join us,” one official said.

“And we risk harming U.S. technology leadership if foreign competitors are not subject to similar controls.”

end quotes

And let me stop right there to let that last sentence sink in, because it happens to be OUR collective futures that this out-of-control autocrat Joe Biden is gambling with as he tries to win the WAR FOR THE 21ST CENTURY, which war, like the SOUL OF AMERICA Joe is also trying to win the war for, exists only in the fevered imagination of American autocrat Joesph Robinette, Biden, Junior.

http://www.capecharlesmirror.com/news/o ... ent-699732

[thelivyjr]

THE CAPE CHARLES MIRROR OCTOBER 8, 2022 AT 10:17 PM

Paul Plante says:

Reuters

“Chip industry grapples with new U.S. curbs on China sales”

By Stephen Nellis and Jane Lanhee Lee

Oct 7 (Reuters) – Companies around the world on Friday began to wrestle with the impact of wide-ranging U.S. curbs on selling chips and chip manufacturing equipment to China.

The sweeping rules have hit chip stocks, with the Philadelphia Semiconductor Index falling nearly 6% by the end of the day.

American semiconductor equipment makers Lam Research Corp, Applied Materials Inc and KLA Corp were all down more than 4%.

American officials on Friday published a sweeping set of rules that restrict the export of some U.S.-made semiconductor manufacturing equipment to China, but provided exemptions for companies from the United States and its allies to seek a license.

Officials on Friday also introduced rules against selling a broad swath of chips for any use in “supercomputer” systems in China.

U.S. companies Nvidia Corp and Advanced Micro Devices Inc both said last month they had been told to stop exporting their top-tier chips to China.

The rules define a supercomputer as any system with 100 or more petaflops of so-called double precision computing power, or 200-plus petaflops of single precision computing power, within a 41,600 cubic feet area.

A petaflop is a measure of a computer’s processing speed.

http://www.capecharlesmirror.com/news/o ... ent-700443

[thelivyjr]

THE CAPE CHARLES MIRROR OCTOBER 9, 2022 AT 9:15 PM

Paul Plante says:

So, okay, people.

Once again, as we watch Joe Biden, a real economical genius if there ever was one, sending OUR national debt through the ceiling, let us ask ourselves this pertinent question with respect to the BILLIONS of tax payers dollars Joe Biden is spending on CHIP FABS to make more and more chips here in the US, to wit: What does somebody really, really smart and a real gosh-darn genuine expert on fiscal matters and economics like Joe Biden do when a big chip company like Micron Technology cuts its current-quarter revenue forecast and warns of a negative free cash flow in the coming three months as customer inventories pile up amid waning demand for chips used in PCs and smartphones?

If you said, PLOW GOBS OF TAXPAYER DOLLARS INTO THE INDUSTRY TO FLOOD THE MARKET WITH EVEN MORE CHIPS, you, too are a rocket scientist in economics like Joe Biden, which takes us to TheStreet for more of the reality that Joe Biden is unaware of because it is happening outside of the bubble of unreality he lives in where everything is possible and all Joe has to do is snap his fingers and it will happen, because it has to happen, because Joe is the president who makes things happen, so it better happen, or else, to wit:

TheStreet

“The Bad Year of Chipmakers AMD, Nvidia and Intel Turns Into a Nightmare”

By Luc Olinga

8 October 2022

Semiconductor manufacturers’ valuations have plummeted.

It’s a bad dream that slowly turned into a nightmare.

And this nightmare doesn’t seem to want to end.

The year 2022 has been a painful journey for semiconductor manufacturers.

Following the example of AMD, Nvidia and Intel, which are the three main players in the sector, 2022 is a year to forget.

Their valuations are in recession.

Advanced Micro Devices currently has a market value of $94.4 billion, which is a decrease of at least $83 billion compared to December 31, 2021.

The AMD stock price has fallen 59.4% during this period.

Nvidia, which was once in the top 10 of the most valuable companies in the world was ejected from this club.

The chipmaker ranks now 21st, as its market capitalization has shrunk by $431 billion.

Indeed, at the start of 2022, the Nvidia’s market value was approximately $732 billion.

It is now only $301 billion.

It’s a disaster for the shareholders of the group.

As for Intel, the group of microprocessors has seen its market value melt from $101 billion from January to $105.6 billion at last check.

Intel shares fell 49% during this period.

Micron Technology’s valuation fell $44 billion in just over nine months to $58.4 billion.

The company’s stock fell for its part by 43%.

Finally, Qualcomm posted a market value of $135.8 billion, down more than $66 billion since January.

The stock price fell 33%.

In all, the semiconductor manufacturers whose chips power almost all our electronic devices, our computers, most vehicles, the gigantic data centers of companies, have lost more than $725 billion in market value combined since January.

end quotes

So think about how safe OUR tax dollars are going to be as Joe Biden spends them to build even more chip-making capacity into a shrinking marketplace, that is being more constricted by Joe Biden closing off external markets, which takes us back to that article for more, as follows:

And this stock market bloodbath will continue if we are to believe what AMD just said.

The group published preliminary results on October 7 for the quarter that just ended.

Revenue is expected to be $5.6 billion, significantly lower than the original forecast of $6.7 billion “plus or minus $200 million,” the firm said in a press release.

“Preliminary results reflect lower than expected client segment revenue, resulting from reduced processor shipments due to a weaker than expected PC market and significant inventory correction actions across the PC supply chain,” AMD said.

Basically, demand for PCs has slowed sharply, which is therefore affecting microprocessor manufacturers like AMD.

It also seems to suggest that PC manufacturers are finding themselves with large inventories.

AMD is also making a little less money on its products as margins have been squeezed.

The company explained that this disappointing figure is due to the fact that the group had to adjust its prices in the face of a drop in demand for processors, and because it tried to liquidate its inventories in the graphics business in particular.

“The PC market weakened significantly in the quarter,” said AMD Chair and CEO Dr. Lisa Su.

“While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain.”

Semiconductor manufacturers are impacted, like the rest of the technology groups, by fears of recession which are discouraging businesses and consumers from spending.

The sector is also suffering from the war for control of technology between the United States and China.

The Biden administration has just issued new directives aimed at drying up Beijing’s supply of microchips used in advanced computing and military applications.

The Department of Commerce has indeed published two new rules that limit American manufacturers from selling their chips to Chinese companies on a blacklist.

“BIS [Bureau of Industry and Security] is expanding controls on transactions involving items for supercomputer and semiconductor manufacturing end uses, for example, this rule expands the scope of foreign-produced items subject to license requirements for twenty-eight existing entities on the Entity List that are located in China,” said the Biden administration.

end quotes

So when Joe builds all these new Chip Fabs with taxpayer dollars, who is Joe going to sell all those chips to?

Or will he deal with that bridge when he has to cross it, as always?

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