By Shaen Saeed, IQI Chief Economist
“You can’t fathom the modern world without putting chips at the center of the story. Advanced chipmaking will return to America in 2025, more than a decade after the country lost its edge in semiconductor manufacturing to TSMC. TSMC is making a huge investment of more than $100 billion in Arizona… The American government hopes that chipmakers will produce almost a fifth of all leading-edge chips domestically by 2030.”
The competition is intensifying. China and the USA are vying for the top position, and semiconductors play a crucial role in shaping the global economy.
Major Players in the Semiconductor Market:
- USA
- China
- Germany
- South Korea
- Malaysia
- Netherlands
New Entrants in the Semiconductor Market:
- India
- UAE
- Japan
- Vietnam
Global Re Balancing – Dollar At A Crossroad. History Repeats
Global Re Balancing – Dollar At A Crossroad. History Repeats
A graph showing the value of the stock market. In my view, we are
on the brink of a global rebalancing.
Historically, when the dollar enters a structural downtrend, hard
assets tend to significantly outperform U.S. equities.
What is the usual outcome of austerity combined with lower
rates? A weaker dollar
While fiscal consolidation is essential for restoring investor
confidence in U.S. Treasuries and reducing long-term interest
rates, one of the most immediate and effective ways to lower
government spending is for the Fed to cut interest rates itself.
This issue likely indicates that the U.S. dollar is at a critical
juncture in history, and the significance of the chart cannot be
overstated.
USA vs. Europe – Reordering Global Financial Markets
According to the Financial Times, fund managers have stated that
Trump’s Make America Great Again agenda has, instead, triggered
a Make Europe Great Again trade, which is reshaping global
financial markets.