In August 2022, U.S. President Joe Biden signed into law a gadget called the CHIPS and Science Act, which directly opened the floodgates of subsidy funding.
This shot is $39 billion, plus $75 billion in loans and mortgages, and up to 25% tax credits, just to "revive" the American chip industry, especially advanced chips. Biden is trying to win over voters with real money.
Semiconductor giants such as Intel, TSMC, and Samsung have received a large amount of subsidies from various governments, adding up to nearly $380 billion! Not long ago, on April 25, the U.S. government announced that it would give Micron Technology $6.1 billion to support it in making chips in New York and Idaho.
Not to be outdone, the European Union formulated its own $46.3 billion plan in April 2024 to expand semiconductor manufacturing capacity in Europe. Germany is even more arrogant to spend $20 billion in subsidies, mainly to Intel and TSMC.
Two major semiconductor factory projects in Europe have landed in Germany: one was built by Intel in Magdeburg, with a valuation of $36 billion and nearly $11 billion in subsidies; The other is TSMC's joint venture in Dresden valued at $10 billion, half of which is government subsidies!
Since June 2021, Japan's Ministry of Economy, Trade and Industry has raised about $25.3 billion for the chip program, of which $16.7 billion has been given to multiple projects, including TSMC.
In April 2024, Japan approved another $3.9 billion subsidy for Rapidus, with the goal of mass production of 2nm chips in 2027. The South Korean government has supported an estimated $246 billion in semiconductor spending. Chaebol giants such as Samsung Electronics and SK hynix, under the guidance of the government, are also investing heavily in the semiconductor field.
Even emerging economies such as India and Saudi Arabia want a piece of the pie. In February this year, India approved a $15.2 billion investment plan for semiconductor manufacturing plants. Saudi Arabia's sovereign wealth fund is also considering a foray into semiconductors.
This "chip subsidy war" is not without hidden worries. Some analysts have warned that large-scale government investment may eventually lead to overcapacity. However, it will take time to build new production capacity, and the risks are manageable.
The United States is making such a big deal about chips, to put it bluntly, in order to contain China. While throwing money at itself, the U.S. government is putting pressure on its allies to restrict the flow of cutting-edge chip technology to China, which has made countries in the industrial chain such as the Netherlands, Japan, and South Korea complain.
Former U.S. officials have pointed out that the U.S. crackdown has instead given Chinese companies an incentive to improve their ability to move up the value chain and cooperate with each other. The Chinese government will also do more.
Therefore, no matter who occupies the White House, a contest between China and the United States in the field of science and technology is inevitable. I'm afraid this "chip war" won't end so easily.
#头条创作挑战赛#