The United States plans to use $52 billion to arrest chipmakers.
The US Congress has exceeded 52 billion
Of the $280 billion approved by the Science and CHIPS Bill, the US government is spending $52 billion to support the semiconductor industry. The regulation says companies that have received subsidies related to increasing chip production in China or any other country will be barred from “large transactions” for 10 years.
follow up Nike Asia, the subsidy package offers are like a rock, forcing manufacturers to choose between the US and China. Semiconductors are a major battleground because they are the brains of electronic devices ranging from smartphones and laptops to data centers. At the same time, it plays an important role in complex weapons such as anti-tank missiles.
The CHIPS+ law, passed by the US Congress last week and expected to be signed into law by the US President later this week, also includes exceptions that would allow manufacturers to continue investing in China if such investments are in the interests of US economy lie. . However, this exception only applies to base extensions and “legacy semiconductors” in chip technologies of 28 nm and higher. Intel and Qualcomm are two companies that stand out in this expanding group.
Old chips are used in everything from smartphones, computers, home appliances to cars. Their presence is more than advanced processors. Many large Chinese companies are focusing on such chips.
According to Tan Albayrak, a lawyer with the law firm Reed Smith, the deal is aimed at companies investing in China. The White House wants to use massive resources to ensure a smooth future supply chain. “This is a step to balance the policy of protecting technological advantages while minimizing harm to the United States,” he said.
Some manufacturers warn that the passage of the CHIPS law will affect future investment plans. TSMC founder Morris Chang criticized the bill. Meanwhile, Chinese chipmaker SK Hynix said: “We will comply with all regulations in the countries where we operate. As planned, we will adapt flexibly to the market. Investment and production.” Samsung declined to comment.
SCMP To quote Chinese Foreign Ministry spokesman Zhao Lijian on July 28, a day before the law was passed: “China strongly opposes the provisions of the law because it could limit normal cooperation between the two countries. The exchange of science and technology between the two countries.”
“The new law is a draft of the investment rating system,” said Martijn Razer, senior fellow at the Center for American Security. “The US is concerned that its money will be used to improve China’s competitiveness,” he commented.
In the past, several major chipmakers have announced an expansion of their operations in the US. TSMC has announced plans to invest at least $12 billion in Arizona. Samsung to invest $17 billion in Texas SK Hynix plans to spend $15 billion on Intel and Micron
Meanwhile, China is also planning until 2025. It will increase its share of the domestic chip market to 70 percent. “China’s demand is to replace all chips,” said Louis Lau, chief investment officer at Brands Investment Partners. Improved with home-made chips. American chip companies lost the manufacturing edge a long time ago.”
Tao Hin. (Consequences Nike Asia)