Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/index.php?threads/china-plans-27b-chip-fund-amid-us-tech-curbs.19787/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021370
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

China Plans $27B Chip Fund Amid US Tech Curbs

Daniel Nenni

Daniel Nenni

Admin
Staff member
China Chip Embargo.jpg


China is setting up a mega chip fund worth $27 billion. The move is aimed at boosting its technological prowess amid rising tech curbs from the U.S.

According to Bloomberg, China’s National Integrated Circuit Industry Investment Fund is pooling resources from local governments in the country as well as state-owned enterprises. Notably, this will be the third such investment vehicle in the country.

China is the largest semiconductor market globally. The country is increasingly pushing for self-reliance and the use of domestically developed technologies, both in hardware and software. This has meant government officials being urged to ditch their iPhones for Chinese phones, sourcing hardware from Chinese manufacturers, and even the development of a China-made OS. This has translated into top U.S. tech names seeing their sales and market share in China dwindle over the years. Micron’s struggles in the country are a case in point.

Companies receiving funds from China’s mega funds are seen as having an endorsement from the country’s authorities. As per Bloomberg, the first fund holds a stake in 74 companies, and the second fund holds a stake in 48 chip names. Meanwhile, the U.S. is urging its allies to tighten their technology restrictions over China.

 
As I mentioned before, semiconductors/AI is an arms race and China is in it to win it.

From the State of the Union Speech:

"Thanks to my Chips and Science Act the United States is investing more in research and development than ever before. During the pandemic a shortage of semiconductor chips drove up prices for everything from cell phones to automobiles. Well instead of having to import semiconductor chips, which America invented I might add, private companies are now investing billions of dollars to build new chip factories here in America!"

I thought the CHIPs Act came from Congress?

en.wikipedia.org

CHIPS and Science Act - Wikipedia

en.wikipedia.org en.wikipedia.org

Hopefully there will be an AI Funding Act because there will be no second place in the AI race.
 
And do they even need money? My opinion is that they are more than capable to raise enough capital, specially in such overhyped area such as AI.

Much more important in relation to gov is how they plan to "regulate" AI... EU is not competitive because of extensive and strict regulations. China will not lead in generative AI because such AI can offend CCP often in non transparent way (for example if You ask to aggregate economic data).

Another problem is transfer of power (as described in Trade wars are class wars). These money are with strings attached so government is getting something like stake in Your company. But government does not have any money. They are acting just as very expensive middle man between taxpayers and receiving companies. You can easily cut this middle man (decrease taxes) and let taxpayers to invest in capital market and benefit from ownership of these shares.

Same with chip act itself. You can decrease taxes and push back against extreme parts of environmental (green deal) and companies will respond positively.
www.intel.com

10nm, Creative Improvements Expand Intel Manufacturing Capacity

In response to incredible customer demand, Intel has doubled its combined 14nm and 10nm manufacturing capacity over the past few years.
www.intel.com www.intel.com
 
Chinese fabless companies haven't had the chance to prove themselves with leading-edge silicon. How could they validate themselves as fund recipients?
 
Wasted money. As long as the CCP insists on being openly hostile and confrontational or the world stage this investment will go nowhere. Who's going to use Chinese fabs outside of China? The domestic market isn't big enough to support a competitor to Intel, Samsung, and least of all TSMC. Semis are inherently a global endeavour. "Going it alone" isn't a viable strategy. Better to stop being opening hostile to all its neighbours lest it be left behind. i.e border disputes with India, Bhutan, Vietnam, Taiwan, Philippines, Indonesia, Japan, South Korea etc. I wonder what the common denominator is in all of these issues. Couldn't possibly be the CCP.....
 
27 Billion a futile attempt, many piglets will be fattened and turned to bacon. It will be much easier to achieve balance power by surrounding Taiwan and threaten to cut off Taiwan.

Nor will this money enable meaningful development of the many tools and also the technology to cost effectively manufacture volume leading edge. Even nurturing design companies is a futile as they are cut off from TSMC.

Again the easy response limit the worlds access to TSMC and equality is restored immediately, LOL
 
Mooredaddy said:
Wasted money. As long as the CCP insists on being openly hostile and confrontational or the world stage this investment will go nowhere. Who's going to use Chinese fabs outside of China? The domestic market isn't big enough to support a competitor to Intel, Samsung, and least of all TSMC. Semis are inherently a global endeavour. "Going it alone" isn't a viable strategy. Better to stop being opening hostile to all its neighbours lest it be left behind. i.e border disputes with India, Bhutan, Vietnam, Taiwan, Philippines, Indonesia, Japan, South Korea etc. I wonder what the common denominator is in all of these issues. Couldn't possibly be the CCP.....
Click to expand...
Wasn’t Huawei well along to becoming the leading user of advanced node at TSMC till the US couldn’t accept it and cut them off.

China has enough people and internal need to support advanced node
 
TBiggs said:
27 Billion a futile attempt, many piglets will be fattened and turned to bacon. It will be much easier to achieve balance power by surrounding Taiwan and threaten to cut off Taiwan.
Nor will this money enable meaningful development of the many tools and also the technology to cost effectively manufacture volume leading edge. Even nurturing design companies is a futile as they are cut off from TSMC.
Again the easy response limit the worlds access to TSMC and equality is restored immediately, LOL
Click to expand...

Maybe a new US President will change things with China a bit. I also think semiconductor access should be restored to China. All they have to do is sign a treaty with Taiwan and recognize them as an independent country. :ROFLMAO:
 
You must log in or register to reply here.
Back
Top