back to article US chipmakers don't want to be locked out of industry's biggest market: China

The US semiconductor industry wants to have its cake and eat it, or rather it wants to have continued access to the huge Chinese market despite Washington's ongoing campaign to limit Beijing's access to advanced chip technology. This latest turn in the chip wars is due to concern among US chipmakers over the rules governing …

  1. Anonymous Coward
    Anonymous Coward

    "...as demand for microchips will continue to rise rapidly"

    Which microchips? It seems there will soon be a ceiling on the purchasing of advanced microchips Vs. the cheap throw-aways put in coffee makers and TV gadgets. A couple areas of this industry are already overstocked.

    As for the article, if it was 2035 and the whole world had their own fabrication plants, would people stop investing in Chinese fabrications? What if it's 2050 and the whole world now has their own fabrication plants but, everyone now starts shutting up shop and moving to China?

  2. Tron Silver badge

    Pick a side for Cold War 2.

    Money and profits don't matter any more to Western governments. They are flipping to the Chinese model of state control and state subsidy, taking back control from the free market and from consumers. Cold War 2 has no fence to sit on. It is BRICS v NATO. Citizens of vassal states are going to feel the pain in their wallets and everyone is going to suffer. Now obey Glorious Leader and sign on the dotted line.

    1. abstract

      Re: Pick a side for Cold War 2.

      They are not flipping to anything, the US have always been a military state. The real reason why they want a cold war 2, is because the military see the cold war as a golden area: unlimited budgets for all agencies and companies busy 'defeating the enemy'.

      1. Clausewitz4.0 Bronze badge
        Black Helicopters

        Re: Pick a side for Cold War 2.

        "cold war 2, is because the military see the cold war as a golden area: unlimited budgets"

        Except now the USA dollar does not look so good to finance unlimited military budgets, nor 800+ military bases overseas (shutting down in 3, 2, 1...)

  3. 3arn0wl

    What a complete mess...

    ... and the US have only themselves to blame for it.

    The day is coming when China (and with them the other BRICS nations) will turn around and say, "we no longer need US technology", and close the door. And that will serve the US right.

    1. abstract

      Re: What a complete mess...

      The real subject behind this is that there is nothing that can be called US technology. The US more than any other country have heen stealing from the world for decades: oil, talents, technology.

      The Chinese have quickly proven that the so called western supremacy is a chimera.

      1. Anonymous Coward
        Anonymous Coward

        Re: What a complete mess...

        @abstract

        They have indeed

        https://www.realclearmarkets.com/articles/2018/07/30/ip_theft_is_what_once_helped_make_america_great_103367.html

    2. I miss PL/1

      Re: What a complete mess...

      The Democrats have themselves to blame. I didn't vote for a demented senile old fool.

      1. Jonno

        Re: What a complete mess...

        To blame Biden is to merely use him as a scapegoat. The downfall of tbe US began decades ago, when they squandered their economic advantages by weaponising tbe dollar.

  4. jmch Silver badge

    The point of a government subsidy...

    ...is to encourage certain behaviours and discourage others. So all those chip companies wanting the subsidies while still wanting to benefit from business as usual can go do one.

    Happily raking in the cash to build fabs and not want to share any profits with those providing the investment is the absolute opposite of capitalism, and of course if anything goes wrong they will be cap in hand asking for bailouts.

    Late-stage crony capitalism, privatise profit and nationalise losses... The supposedly free markets aren't working very well!

  5. very angry man

    big chips are called wedges

    Infineon said it is seeking public funding of around €1 billion (£1.1 billion) towards the cost of the new plant, which is intended to produce power electronics based on 300mm wafer technology.

    you guys do realize that 300mm is just under a foot in the old measure. so not going in the latest i thingy then.

    maybe we are renaming the desk top to just desk?

    that's the size of a floor tile, maybe they can connect together and become the ceiling/ floor computer?

  6. Avon B7

    Only a tiny, tiny fraction of the world's semiconductor output is on cutting edge nodes.

    SIA wrote to the White House a few years ago warning that US interests would be impaired by restrictions on China. The Pentagon even stepped in on one occasion to delay a Trump Executive order on restrictions.

    The Hawks won out in the end and as a result, billions were lost in revenues from Chinese companies. 11 billion from Huawei alone in one year. Those were revenues that would have formed part of future R&D efforts from US companies.

    Now, the boot is firmly on the other foot. Chinese companies (and many western companies) are 'de-Americanising' their production lines and technologies to free them from the long arm of US extraterritorial (and unilateral) sanctions. For every ban, a non-US alternative is being sought. Huawei has made huge advances over the last three years.

    New competitors to US interests are spawning at an accelerated rate. Where US companies once enjoyed monopolies, new competitors are arriving. Very little of those 11 billion dollars from Huawei would ever go back to US companies if sanctions were lifted. The genie is out of the bottle. Money is being ploughed into non-US interests.

    Huawei is looking at RISC-V, chiplets and chip stacking and has made several breakthroughs already. Some confirmed and others rumoured. The chipstacking breakthrough will very probably lead to non-cutting edge fabrication of very competitive chips at far lower prices. Just a little less bang for far less buck. That could have serious repercussions on the market. Corning glass was replaced by Kunlun etc.

    That the US wanted to have its cake and eat it isn't a surprise. That they totally screwed up at getting there is no surprise either.

    No matter what the predictions were on how long it would take China to catch up in certain areas, the best guess now would be to halve them.

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