US and allies vie with China for semiconductor supremacy, powered by wave of domestic investment
Investors in Best Hedge Fund Bet of 2023 Review Climate AssumptionsSevere Solar Storm Threatens Power Grids and Navigation SystemsCooling Core Inflation Will Offer Minimal Relief to the FedA Doomsday Recession Mentality is Keeping the S&P 500 StrongWorld’s Top Coffee, Soy and Sugar Supplier Wants to Rule Cocoa, TooBrazil Prepares for More Rain as Historic Flood Damages MountFast Casual Dining Hurt by Consumer StrugglesChina to Nurture Stock Rally by Masking Live Foreign Flows DataDividend...
Chips spending by the US and its allies marks a new challenge to Beijing’s decades of industrial policy — albeit one that will take years to bear fruit. The rush of funding has hardened battle lines in the US-China trade war, including in places like Japan and the Middle East. It’s also giving a lifeline to Intel, the one-time global leader in chip manufacturing that in recent years has lost ground to rivals including Nvidia Corp. and TSMC.
“Technology is moving fast,” US Commerce Secretary Gina Raimondo, who’s leading the administration’s semiconductor charge, said at a conference in Washington last month. “Our enemies and competitors, they’re not moving slowly. They’re moving fast, so we have to move fast.”Across the Atlantic, the European Union has forged its own $46.3 billion plan to expand local manufacturing capacity.
China now has more semiconductor plants under construction than anywhere else in the world, building production of less-glamorous legacy chips while amassing the expertise needed for a home-grown technological leap. It’s also working on domestic alternatives to Nvidia’s AI chips and other advanced silicon.
Beijing and local governments do not disclose their overall semiconductor funding, although certain companies disclose some of the subsidies they receive. Estimates vary widely because money comes from state-backed national funds, local government financing and a wide array of incentives and tax breaks.China’s efforts have been slowed by a wall of restrictions imposed by the US to deny its geopolitical rival access to the latest semiconductors.
The US-led crackdown has provided “a huge incentive for Chinese firms to improve their capabilities, move up the value chain, collaborate amongst themselves, and galvanize more government support to firms like Huawei that are driving the industry forward,” said Paul Triolo, a former US government official who specializes in China and technology policy at Albright Stonebridge Group.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rents Set to Be Last Domino to Fall in Global Inflation Battle(Bloomberg) -- Surging rents across many developed economies are proving to be a stubborn hurdle for central banks as they struggle to nail down inflation...
Read more »
Rents Set to Be Last Domino to Fall in Global Inflation BattleSurging rents across many developed economies are proving to be a stubborn hurdle for central banks as they struggle to nail down inflation once and for all this tightening cycle.
Read more »
Power blackouts hit Tanzania as Cyclone Hidaya intensifies towards the country's coastlineNAIROBI, Kenya (AP) — Tanzania’s power distributing company on Saturday announced a major blackout for most of the country due to the power grid's failure...
Read more »
Residents Flee Rafah as Israeli Military Operation IntensifiesIsrael’s leaders have said the military needs to move into Rafah to dismantle the remaining battalions of Hamas. Photo: Mohammed Saber/Shutterstock
Read more »
Israel captures main aid route into Gaza as Rafah invasion intensifiesNo aid is reaching Gaza, UN aid agency says; Israel will send a delegation to Egypt to continue ceasefire negotiations, Netanyahu’s office says
Read more »
Analysis-Billionaire ex-PM returns to the stage as Georgian standoff intensifiesExplore stories from Atlantic Canada.
Read more »