In the headline hot list, Biden signed the chip bill, which caused heated discussion in the market. On the evening of August 9, Beijing time, Biden officially signed the Chip and Science Act, passing this bill to provide huge subsidies to the domestic chip industry in the United States and is committed to building American chips.
Before the signing of the chip bill, American chip manufacturers, semiconductor equipment suppliers, applied materials manufacturers, and car manufacturers all participated in the discussion on how to accelerate the development of the semiconductor industry and keep the US economy and supply chain safe. What is the content of the chip subsidy bill for
, and what impact it has on China's chip industry? Let's make an in-depth interpretation: Where is the 552.7 billion US dollar subsidy used?
1. This bill provides US$52.7 billion in subsidies for the US chip industry, equivalent to more than RMB 350 billion, but this subsidy is not given in vain. To get this subsidy, it is necessary to move the chip industry chain or chip foundry to the United States and produce chips in the United States to get huge subsidies.
2. The huge subsidy of 52.7 billion is not all given to chip companies. 39 billion of them are used for incentives and subsidies in the chip manufacturing industry, and 2 billion US dollars are used for traditional chips in the automotive and defense systems fields.
3. For enterprises that build chip foundries in the United States, there are also discounts in terms of corporate taxation, and they can obtain 25% tax exemption. About US$2.4 billion of the 52.7 billion subsidy is a tax exemption for investing in chip factories.
4. This chip bill is actually a fulfillment of the previous chip industry alliance with Europe, the United States, Japan and South Korea. The subsidy of 50 billion US dollars attracted global chip giants to enter the US market.
What impact does Biden’s chip bill have on China’s chip industry?
Judging from the content of the chip bill, Biden hopes to reshape the US chip manufacturing industry. In the global chip industry chain that has been formed in the past 30 years, the United States is in the upstream with technological and patent advantages, but the mid-to-downstream industrial chain of mass production and manufacturing of chips are concentrated in Asian markets, such as South Korea's Samsung , China's TSMC, SMIC and other
The characteristics of the US economy are to use the US dollar world currency to allow the global industrial chain and service industry to serve the US market. Simply put, the US dollar exchanges physical resources and physical assets. However, the problem brought by this is that the US local industries are highly financialized, and physical manufacturing has lost a large number of overseas markets, becoming a financial hollowed-out economy, and there will be a cyclical financial crisis.
Biden wants to bring all the chip manufacturing industry chains that were originally in the Asian and European markets to the local U.S. market, build a full industrial chain system for chips and semiconductors, and save the US physical manufacturing industry. This is also a long-term strategy to solve the problem of double high inflation in the US economy, but it is difficult to see the effect in the short term, and there are various uncertainties.
From the perspective of digital economy and smart business, chips are very important for the digital economy revolution and the digital transformation of enterprise . This is also an industrial game between China and the United States in the digital economy field. The 52.7 billion subsidy is also competing with China for the chip manufacturing market.
For China, since the United States blocked chips on Huawei , the domestic chip industry has entered a period of rapid development, and even formed an entrepreneurial style. A large number of high-quality talents and professionals flocked to this industry. With policy and financial support, a large number of chip startups have appeared in Shanghai, Shenzhen, Beijing and other places, focusing on domestic chip replacement.
The US blockade of the chip industry chain has indeed had an impact on technology companies such as Huawei. For example, Huawei directly lost its mobile phone business, and the mid-to-high-end mobile phone market had to be given to Apple and Samsung mobile phone , while Huawei and OPPO can only fill the market share of low-end mobile phones. Honor mobile phone brands have also separated from Huawei and began to develop separately. We hope to get back the market share of mid-to-high-end mobile phones.
In the past, we used why we could buy them from Europe and the United States and exchanged them for technology. Many technology companies similar to Lenovo , which appeared. They seemed to be powerful technology companies, but many technologies and patents were controlled by Europe and the United States, resulting in industrial profits mainly flowing to European and American economies.
Ni Guangnan and other experts and academicians who focus on domestic chip replacement, although they are determined to change the chip industry structure, they have to compromise. In that era, many projects of domestic chip and semiconductors ended in vain.
Therefore, in terms of the development of chip domestic production, there is no long-term investment and dedication, which makes the industrial problems that can be solved in the past tens of millions of dollars, and now it needs to spend tens of billions of dollars, facing various technological blockades in Europe and the United States, and is relatively passive.
From another perspective, under the global chip shortage, the prices of various chips have risen to varying degrees, which has led to a significant increase in revenue from practitioners in this industry. The huge interest rate spread of caused by price fluctuations has caused many people to flock to this industry, even if they are just salesmen in semiconductor and chip sales.
The more blocked the United States, the more accelerated our domestic substitution, which has become a law.
Nowadays, China, EU , and the United States have begun to invest heavily in the chip industry, hoping to build a full industrial chain system in the local market, which also means that the pattern of the chip industry will undergo tremendous changes in the next 10 years.
Currently, we have achieved mass production of mid- and low-end chips. Some high-end chip semiconductor industries have local advantages. However, overall, there are still shortcomings in mass production of high-end chips. Some high-end chip semiconductor devices also need to be imported. Short-term pain is inevitable, and in the long run, it will also promote us to improve our chip manufacturing industry.
Huawei can design high-end chips and has HiSilicon , which is the world's leading chip design company, but in China, there is no mature and reliable chip manufacturing company and industrial chain, to solve the problem of high-end chip mass production for Huawei.
In the hot spot for domestic chip replacement, Huawei has also invested in more than 40 chip semiconductor companies in three years to help the development of domestic chip replacement in the chip industry.
, benchmarking against the United States and the European Union, China has also established relevant chip investment industry funds in Shanghai and other places, and built chip industrial parks in different cities.
The United States' blockade of the chip industry has also had a backlash on itself. After all, the chip industry has only formed a global model in the past 30 years. Asia is the largest manufacturing and consumer market. If the United States wants to reverse this pattern, it is far from enough to use a subsidy of US$52.7 billion.
Do you think Biden’s 52.7 billion subsidy can change the global chip industry structure, return the chip industry to the US market, and become a part of the US manufacturing industry? Share your views and communicate together.
