China creates $47B chiptech investment fund China has allocated a big pool of money, hoping to spur domestic semiconductor development. The fund is actually the third version of the "National Integrated Circuit Industry Investment Fund" – colloquially known as the "Big Fund." This one is certainly big: it's gathered 344 billion yuan of capital, or around $47 billion. …
For the uninitiated, it's worth noting that subsidies/bailouts/handouts and investment are two entirely unrelated processes.
The "cash splash" in the USA is being kissed goodbye as soon as it gets signed off on. Investments by this new Chinese formation will, on the other hand, expect and demand performance and returns (and as the article mentions, will provide management/guidance services to ensure such).
Which approach do you think is more likely to succeed?
In other words you give up control to government bureaucrats. And you're saying this like it is an advantage of their way?
There are more strings to the chip fund money in the US than there has been with similar plans in the past but yeah, it isn't without the potential for abuse. But don't pretend like China is a smart investor. If they are, why are their local governments swimming in debt and major real estate companies going bust requiring yet another round of bailouts from (main) government? They are extending it out far worse than the US real estate bubble, it is going to be really bad when they finally give up and have to let it burst.
In other words you give up control to government bureaucrats. And you're saying this like it is an advantage of their way?
Seems to be to me. If I am handing out money I would prefer it went to those who shared my vision and would use it to move us all collectively forward than have it taken by those who are more interested in benefiting themselves, the board and shareholders.
China is far from perfect - it's not been playing the game for that long - but the culture is of collective advancement where westerm capitalism is mostly greed and personal reward.
The one time America pulled together was probably the space race. That's the angle China are playing.
"Seems to be to me. If I am handing out money I would prefer it went to those who shared my vision and would use it to move us all collectively forward than have it taken by those who are more interested in benefiting themselves, the board and shareholders."
Worked so well in the Soviet Union.
China would launch the third phase of the Big (Chip) Fund.
The first phase of the fund was established in 2014 with registered capital of $20 billion, and the second phase followed in 2019 with $30 billion, and now the third, around $50 billion.
* Self-sufficiency in chip production plan
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Spotify will bend like a reed in the wind
If China decided that Gplay / Android / iOS are outlawed the do you really think that Spotify wouldn't redevelop a compatible app for the 'new' ecosystem? A slice of the pie of 2Bn potential consumers is still substantially larger than the whole of the US has to offer. If the CCP offered me exclusive rights to their market I'd do it in a heartbeat. Ever since Trump started his nonsense the Chinese have been making huge leaps forward. They built their own spacestation, landed on the dark side of the moon and started fabbing 7nm chips. If I was the US I'd be fucking terrified of what happens in the next 5 - 10 years."
'nuff said.
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