All of the information stated in this article is based on reliable sources of information and is detailed at the end of the article
Text/Editor: Look at Mr. Zhang
The United States is making a new move!
In order to suppress China's semiconductors, the United States led its allies around the world to set off a "subsidy frenzy", and the first batch of 81 billion funds have all been put in place, and China will now face a situation of 1 enemy and 30.
What will be the impact of this "subsidy frenzy"? How will China break the deadlock?
1. Huge U.S. subsidies against China
With the U.S. presidential election just around the corner, the Biden administration is under tremendous pressure, and in order to increase its own approval rating in this election, the United States today has made frequent moves.
Recently, it has joined forces with the European Union, Japan and other allies to invest the first batch of subsidy funds to achieve the purpose of suppressing the development of China's semiconductors.
Since 2022, the United States has introduced the CHIPS and Science Act, which opened the prelude to government subsidies.
After the enactment of the law, the United States began to close contact with chip manufacturers, and communicated with Micron Technology, the largest computer chip manufacturer in the United States, and invested $6.1 billion in financial subsidies to them.
So far, promoting the revitalization of the U.S. chip industry through subsidy policies has also become an important measure for the Biden administration to improve election competitiveness.
Not long ago, the United States successively subsidized TSMC, Samsung, Micron and other companies, with a total of up to $33 billion.
This move has also intensified the war between the United States and China for chip supremacy, and in order to win the global chip war, the United States has enlisted other allies to join in.
Since Biden took office, the United States and the European Union have maintained normalized diplomatic relations, and the European Union will naturally not be absent from this joint confrontation with Chinese semiconductors.
In the early years, due to the rise of digital chips, the electronics industry in Europe gradually declined, and the development of semiconductors in Europe lagged behind the world.
In order to regain the right to speak in the semiconductor industry, Europe has been moving continuously in recent years, and has successively formulated a series of development plans and subsidy policies.
This time, the United States took the initiative to launch joint subsidies, which is actually in line with the intentions of European countries.
Previously, the European Union directly formulated a subsidy plan of 48.8 billion US dollars to expand the domestic semiconductor production capacity in Europe.
Among them, Germany has proposed to contribute $20 billion in subsidies to increase the production of chips, most of which will be used to support the landing of two semiconductor factories of Intel and TSMC, but this plan has not yet been approved by the European Union.
However, judging from the experience of the previous chip subsidies being stranded many times, the implementation of Germany's plan is still full of uncertainties.
Not only that, but it is not optimistic about whether the EU can achieve the set goal of "producing 20% of the world's semiconductors by 2030".
At the same time, US allies in the Asia-Pacific region have joined them.
Last month, Japan provided $3.9 billion in subsidies to a newly established local semiconductor company in a bid to reach its goal of mass production of 2-nanometer logic chips by 2027.
Since 2021, Japan has been allocating tens of billions of dollars in subsidies to invest in research and development in the semiconductor industry, in an effort to become a global player with technology.
In June last year, Japan formulated relevant industrial strategy guidelines, and used the funds raised to build factories of semiconductor companies, including TSMC and Micron Technology.
Unlike Japan's direct subsidies for factory construction, South Korea tends to encourage domestic chaebol groups to invest accordingly.
At the same time, some emerging economies, such as India and Saudi Arabia, have also released plans to invest in factories.
However, this subsidy frenzy has also exposed many problems.
On the surface, the United States and its allies seem to be well-prepared to build a "protective wall" against China, but in fact, the final effect of this series of operations will take a long time to be felt.
But in fact, US allies, including Japan and South Korea, have been dependent on the Chinese market for many years, and this collective subsidy campaign will force Japan and South Korea to further reduce their business in China.
Once the big cake of the Chinese market is lost, Japan and South Korea may have a more difficult time in the future.
Although the United States is smart, this subsidy in the field of chips seems to be aimed at China, but in fact it also plays a role in restraining other allies.
In terms of high-tech development, the United States wants to maintain its hegemonic position forever, not only suppressing China, but also trying to narrow the gap with other allies in the field of semiconductors by subsidizing its own enterprises.
Therefore, this subsidy is also bound to intensify the competition between the United States and other allies.
Second, the door to negotiation is closed, and where will the future go?
The U.S. Secretary of Commerce publicly declared last month, "Our enemies and competitors move fast, so we must move fast." ”
As soon as these remarks came out, they undoubtedly closed the door to negotiations between China and the United States.
In order to maintain its hegemonic status, the United States has always regarded China as a formidable rival and has stumbled everywhere in various fields such as economy and trade, high and new technology, and so on.
In order to maintain its hegemonic position in the world and prevent the mainland from making technological breakthroughs in chip technology, the United States can be said to have spared no effort.
From the earliest military sanctions, to the subsequent trade conflicts, to restrictions on the development of mainland technology companies, the revocation of US companies' export licenses for Huawei semiconductors, and the imposition of tariffs on China's new energy vehicles and other products.
After Biden took office, he began to tend to unite allies against China, from the hype of the "China threat theory", but now the joint subsidies restrict the development of China's semiconductors, which is quite a "desperate Saburo".
However, in the face of US suppression, China has become more and more courageous, and has launched countermeasures, successively promulgating the "National Defense Law" and other laws and regulations to reject the unreasonable demands of the United States.
The U.S.-led crackdown has not had as much impact on China as they expected, and although China will face a situation of being one against 30 enemies, China is ready to deal with it.
To a certain extent, perhaps this action will also provide huge R&D and production impetus for Chinese enterprises, prompting Chinese enterprises to improve their technological level and semiconductor production capacity, and China is bound to go further on the road of independent research and development in the future.
Reference Sources:
2024-05-14 10:24 Phoenix.com Finance Global competition is becoming increasingly fierce, and countries such as the United States and Europe have allocated $81 billion in subsidies to the semiconductor field
2024-05-09 06:32 Huanqiu.com The United States tightens restrictions on Huawei chips to affect two American companies, China's Ministry of Commerce: Typical economic coercive practices
2024-05-08 20:13 The Ministry of Commerce responded to the revocation of the export license of some enterprises by the United States and Huawei