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Spending $25 billion: Is there any hope for the return of the U.S. semiconductor industry

According to the “Nihon Keizai Shimbun” report, U.S. lawmakers from both parties have proposed a number of chip-related bills, planning to spend tens of billions of dollars in huge subsidies to promote the development of the domestic chip industry, because of concerns about the rise of China.

Encourage the semiconductor industry to return, Intel, AMD, etc. will receive huge subsidies

According to the “Nihon Keizai Shimbun” report, at the end of June, a number of U.S. congressmen from both parties jointly proposed the “2020 American Foundry Act (AFA)”, which mentioned that the U.S. government invested a total of $25 billion in funding, and the federal government can provide up to $3 billion each in subsidies for semiconductor factories and research facilities. In addition, the federal government may also establish a $15 billion fund to invest over 10 years. The “Nihon Keizai Shimbun” analysis believes that the US government hopes to promote the return of the semiconductor supply chain to the United States through huge subsidies to the domestic semiconductor industry. Intel, AMD and other companies will use this to further improve the level of technology to help promote the development of the US semiconductor industry.

According to OFweek Electronic Engineering Network, whether it is AMD or Intel, both are the objects of the recent uproar in the Huawei ban incident. While prohibiting them from doing business with Huawei, they plan to issue huge subsidies to help companies. Isn’t this a good way for the United States to “enhance and power”?

On September 15 this year, the US ban on Huawei came into effect. Major semiconductor manufacturers such as TSMC, Qualcomm, Samsung, SK Hynix, and Micron will no longer supply chips to Huawei unless they apply for a license. Although everyone knows that it is not easy to get a license, no one is reluctant to let Huawei, a big customer, continue to apply to the US government. AMD was the first to get the ban license. Forrest Norrod, senior vice president of AMD and general manager of the data center and embedded business division, personally stated at the Deutsche Bank Virtual Technology Conference that AMD has obtained the approval of its U.S. The licenses for certain companies in the Entity List to sell their products will not have a significant impact on AMD’s business due to U.S. restrictions on China. Although there is no explicit mention of “Huawei”, since it is said that it will not affect its business in China , you must have guessed why.

Followed by Intel, a domestic media reported on the 21st that Intel has obtained a supply license to Huawei. The news was subsequently confirmed by Intel. In addition, a source from a supply chain company revealed on the evening of the 21st that Intel told the company that it had obtained a supply license to Huawei, so the supply chain company has continued to promote the Huawei notebook project. Allegedly, Intel is the first batch to get the license. In short, these news are good for Huawei, at least Huawei’s notebook business can continue to maintain. Of course, this does not mean that Huawei can pin all its hopes on foreign chip manufacturers, and its future development plan is to seek domestic alternatives.

Of course, from another perspective, the reason why the U.S. government will allow these companies that originally had semiconductor business with Huawei to resume transactions, and even give them huge subsidies in the follow-up, is also closely related to the concerns of the domestic semiconductor industry in the United States.

(The picture comes from OFweek

According to the statistics of the Semiconductor Industry Association (SIA) of the United States, since the US government began to announce the sanctions on China’s semiconductors, the loss of related US semiconductor companies has exceeded 17 million US dollars (about 117 million yuan).

As a representative of nearly 95% of the semiconductor industry in the United States, he is also dissatisfied with the actions of the US government. It is reported that the various “wrong” measures implemented by the United States recently have caused the related enterprises in the country to lose 17 million US dollars (about 117 million yuan).

According to SIA, the wrong move by the United States is simply “losing the wife and losing the army”. Boston Consulting statistics show that the current share of China’s semiconductor production capacity in the global production capacity has reached 15%, and by 2030 China’s chip production capacity will be the highest in the world. No. 1, accounting for 28% of total global production capacity, while the cost of setting up and operating an advanced chip factory in the United States within 10 years is 30% higher than that of Taiwan, South Korea or Singapore, and 37% to 50% higher than that of mainland China, SIA Chairman and CEO Official John Neuffer described the U.S. government’s actions as “a broad restriction on commercial chip sales that would wreak havoc on the U.S. semiconductor industry.”

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