Loup TV 166: Big Tech and the Geopolitical Shuffle; It’s Getting More Difficult to Invest in China

Loup TV 166: Big Tech and the Geopolitical Shuffle; It’s Getting More Difficult to Invest in China

  • Foxconn, the maker of the iPhone, plans to diversify and build a $9BN factory in Saudi Arabia. Though the company’s pledge to invest $12BN in Brazil years ago did not pan out, Foxconn opened a new plant in India in January.
  • After acquiring Israel-based Tower Semiconductor for $5.4BN last month, Intel is developing their own fab for semiconductor research in Europe. Bottom line: Intel is investing in ASML EUV technology to embolden the current competition to TSMC.
  • Panasonic is reportedly scouting U.S. sites for new Tesla factories devoted to 4680 cell production. While we don’t believe the race for 4680 batteries is as imperative as the race for semiconductors, access to commodities like Cobalt (Co) and Nickel (Ni) for battery production will continue to be crucial.
  • Tencent is facing fines from China’s central bank (PBOC) due to regulatory breaches related to potential money laundering. The overall market continues to be under pressure, and Tencent shares are down 10%.

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