Who will win the chip wars?
I deliberately took a month’s break to understand the consequences of the latest US attack on China in the “chip wars”.
Hence, China is struggling to become completely independent of America (and its allies) in chip design and manufacturing.
America is struggling to ensure that no country in the world (including its allies) could not produce the latest generation of chips, that is, without the participation of American companies.
China has spent about $ 500 billion on the “struggle for independence” over the past 10 years. And got something. But: China still spends more money on importing chips than it does on oil (This, by the way, when you think about it, is a very surprising fact).
So far, China is unable to produce the last three generations of chips. Therefore, to assemble smartphones in China, it is necessary to import chips for them. 90% of these chips are manufactured by TSMC in Taiwan. The rest is Samsung. Furthermore, TSMC is fully operational “made to order ”, that is, someone does the design of the chip – and she produces it. In huge quantities.
100% of the equipment to make these chips is manufactured by ASML in the Netherlands.
So far, American restrictions (were introduced under Trump) worked like this: state-of-the-art chip manufacturing equipment cannot be imported into China. All other equipment with permission from the US Department of Commerce. That is, America knew what was being imported into China.
China cannot produce the last three generations of chips
And now Biden has hit from all the barrels.
That means:
1) It was forbidden to import equipment not only of the latest generation into China. Now it is written there that it takes a long time to try to import anything into China.
2) They have banned all chips used for artificial intelligence and data mining applications from being imported into China, without exception.
3) I decided to compile a list of all the companies that design and / or manufacture chips in China, obviously to sanction them in the future with a single stroke.
4) And this is the most important thing, as everyone writes: those with American citizenship or the green card are prohibited from working for Chinese companies operating in the chip sector.
And this last point is the strongest blow for China. Many talented Chinese have studied and then worked in America. Graduated from the coolest universities (such as Stanford and Harvard) and then worked in leading companies. Those who have lived in America for a long time have received citizenship. Those who are smaller, all have the green card. And many of them have returned to China and work as top managers or top engineers in Chinese companies. Additionally, China appears to have hired hundreds of American engineers to help catch up with America.
In total, there are thousands of people who occupy the most key positions and work in China. Everyone has already resigned: no one wants to risk personal American sanctions. Even the Chinese Communist Party doesn’t know what to do now. They don’t have their own Stanford and Harvard yet.
What I have read shows that they are confused and desperate. No one expected such a blow from America. Let’s see what happens next!
Joint our Telegram channel Views of NV
