Press "Enter" to skip to content

The United States starts the chip bill and shoots itself in the foot!

On August 25, President Biden signed the executive order to launch the “Chip and Science Act of 2022”, marking the full implementation of the $280 billion law. Washington wants to realize their ambition to control the global chip industry as much as possible in its own hands.

The Chip Act launched a rare industrial plan in the United States. As we all know, all the famous companies in the United States are products of a highly liberalized market economy. However, the chip bill follows the “planned economy” routine. It needs to use the power of the entire United States, and at the same time search for the industrial capabilities of Taiwan, South Korea, and Japan, and realize the “localization” of US chip production. And this plan is to curb the rapid development of China’s chip industry as the fundamental goal.

That is to say, the competitiveness of the free market economy in the United States is not good anymore. On the one hand, it formed the Chip4 alliance with Taiwan, South Korea and Japan to promote the exclusion of China from the chip industry chain. On the one hand, the production center of the Chip4 Alliance will also be transferred from East Asia to the United States.

Please note that Trump has vigorously promoted the return of American companies abroad, but the effect is very poor. Biden’s “Chip Act” is aggressive, but the result is difficult to get better. Because it violates the basic laws of the market economy, it is closely related to the manpower and material patterns of the chip industry.

The “Chip Act” is coming to China, and it will definitely cause trouble for China. For example, the Act stipulates that manufacturers receiving subsidies from the United States cannot build or expand semiconductor factories with advanced manufacturing processes in mainland China within 10 years, and the United States has raised its technology export control standards to China. Just on August 23, the United States announced sanctions on seven more Chinese companies, many of which are related to semiconductor technology.

Let’s take a closer look at the sanctions under the Chip Act.

First, in the field of chip design, China has cut off supply of EDA involving advanced semiconductors.

As we all know, EDA tools are software tools for chip developers to complete chip design on the computer. Just like CAD software for engineering drawing and mechanical drawing, they are called “the mother of chips” in the industry.

In layman’s terms, EDA is like a cook’s stove, a tailor’s scissors, and a photographer’s camera to chip developers.

This move by the United States directly wants to strangle Chinese chip design companies to catch up with American design companies. Their purpose is that all chip design companies in China can only do 5nm in the future. As for the more advanced 3nm integrated circuit design process, China will not even think about it!

Second, in the field of chip production, the export of high-end lithography machines to China is restricted.

If EDA software is the mother of the chip, then the lithography machine that produces the chip is the father of the chip. It can be said that without the lithography machine, there is no chip industry.

ASML is the world’s largest lithography machine manufacturer. According to media reports, the United States is now putting pressure on the Dutch government to ask the country’s ASML company to ban the export of lithography machine technology to China.

Third, in the field of chip materials, export controls are imposed on some semiconductor materials.

Recently, the United States has banned gallium oxide (Ga2O3) and diamond, two types of ultra-wide bandgap semiconductor materials, from exporting to China.

Gallium oxide and diamond are widely regarded as fourth-generation semiconductor materials, capable of operating in harsher conditions, enabling higher power and better performance.

Not only key equipment is not given to China, but also key raw materials are not given to China.

In addition, the Chip4 Alliance excludes China. The United States integrates regions in the world engaged in chip raw material supply, chip design, R&D and manufacturing to form a supply chain that is under the control and manipulation of the United States. Some time ago, Pelosi visited East Asia, one of the purposes is to form this alliance.”China Focus” is a YouTube channel created to provide current events and pop culture headlines from China.Here you can get to know a more real China through my video. |
#ChineseNews #chips #ChinaFocus
Thanks for your watching and subscribing.