USA sign the CHIPS Act: no more dependence on China

uses semiconductor chips act

It has been talked about for a long time, but now it is reality: the government USA signed on CHIP Act, which officially becomes law from a proposal. The aim is to make the United States more independent in the technology sector after the semiconductor crisis demonstrated the problems of such a market poco geographically varied. As stated by President Biden, "America invented semiconductors, but over the years we have let semiconductor manufacturing move overseas". The goal is to bring the US chip industry back into vogue after experiencing the slowdowns due to strong lockdowns in Asia.

At present, from Taiwan, China e South Corea comes about the87% of production global of semiconductors. Of these, as many as 63% only from Taiwan, in particular from TSMC which produces over 50%, especially those latest generation chips that find space in Qualcomm and Apple products, to remain in the American context. Precisely for this reason, there is strong concern about the hypothesis that China decides to reclaim the island of Taiwan. Also because, despite being the tech factory in the world, only 7% of global production comes from Chinese foundries. If China succeeds in getting Taiwan back under its flag, it could bridging the technological gap which separates it from the leading nations; however, the same TSMC explained because such an invasion would end up hurting everyone, including China.

The US wants to become more independent in semiconductor manufacturing: what is the CHIPS Act

The US Senate approved the CHIP and Science Act, a measure from 280 billion dollars to stimulate the domestic industry. When it comes to semiconductors, the main companies in the United States are Intel, GlobalFoundries, Micron, Western Digital, Texas Instruments and Analog Devices. Of these 280 billion, 52 will be made available to these and other companies in the form of tax credits and loans. Those who benefit from these incentives will not be able to move production to China, except for those technologically dated semiconductors (at 28 nm or earlier). In addition to focusing on its own companies, the American goal is also to attract foreign talents who can contribute to the national supply chain. In this way, companies like TSMC e Samsung, who already have printing facilities in the US and are building new ones, they will not be able to expand into China if they take advantage of this funding.

"One third of inflation in 2021 was due to the high price of cars, driven by the shortage of semiconductors "says Biden. “For the sake of our economy, jobs and national security, we need to produce these semiconductors again in America". But it will take time before the US can actually make itself more independent of Asia. Meanwhile, the US government is stepping up efforts to create the Chip 4 Alliance pact along with Taiwan, South Korea and Japan.

And there is no lack of China's response: "CHIPS Acts and Chip 4 have a strong coercive nature, asking others to take sides between China and the US, to stifle our development". As a Chinese industry engineer (who declined to remain anonymous) puts it, there is some pessimism in the semiconductor industry in China, as the CHIPS Act could undermine efforts so far. For example, it is rumored that SMIC (China's largest chipmaker) has achieved its goal of printing 7nm chips, but that's slowing it down heavily. american ban which risks breaking even on the Chinese memory market.

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