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Beware of the US destroying the chip industry

  Recently, the US government approved the “Chip and Science Act of 2022” (“Chip Act”). The bill decided that in the next five years, a total of 280 billion US dollars will be injected to promote the development of the US chip industry.
  It stands to reason that it is not an exaggeration for a country to use industrial policies to develop cutting-edge technologies. However, according to the Act, a semiconductor manufacturing company that builds or expands advanced production capacity in China or other potentially “unfriendly countries” may not receive the subsidies promised by the “Chip Act” if it builds a factory in the United States at the same time. If combined with the so-called “chip quadrilateral alliance” that the United States is vigorously promoting and leading, the whole world understands that the United States is trying to establish a “chip hegemony that is completely controlled by itself”, and the core opponent is China.
  With subsidies and preferential taxes, will the world’s chip and other technology industries flock to the United States?
  In fact, an important feature of the development of contemporary science and technology is that even a very small segment may require an investment of trillions of dollars at every turn, and the cost is so high that it is rare in history. Therefore, the cheapest and most reasonable way of development must be a global portfolio. First, countries with different advantages should conduct research and development in some subdivided fields based on their own advantages, and then combine all the best to form the lowest development cost; market to minimize the cost of use; again, huge market sales and profits can cover huge investment costs.
  However, the United States goes against the trend, fights against the law, and “makes a big pot to fry a small dish”, and can this small dish cover the cost of building a big pot? I am afraid that chip companies all over the world must consider this issue.
  Recently, the trouble has come to South Korea again. It was replied (actually coerced) by the United States within a time limit on whether to join the “Quartet Alliance of Chips”. How did South Korea respond? A senior South Korean government official said: “This week (August 8 to August 13), the Ministry of Foreign Affairs of South Korea will convey to the U.S. State Department through formal diplomatic channels that a preparatory meeting of the ‘Chip Quartet’ will be held early next month (early September). related matters.” However, the South Korean government decided to propose two basic principles to the United States: first, participating countries should respect the one-China principle; second, not to mention export restrictions to China.
  It can be seen that Koreans understand very well that it is not so much that Korean chips are inseparable from the Chinese market, but the entire chip industry is inseparable from China, and it is impossible to give up such a large market as China. Therefore, those industries and enterprises that rely on high input, high output and high technology must respect the one-China position, because this is the basis for dealing with China.
  After the United States approved the “Chip Act”, the stock prices of chip-related companies around the world fell, indicating that the market and companies understand that small markets and small circles simply cannot support a developing semiconductor industry, and they are trying to sell the world’s largest market – the Chinese market. The practice of being excluded from the global chip industry chain is a disaster for the semiconductor industry.