The global chip subsidy war

As the US Congress passes the chip bill, one notable phenomenon is the flood of incentives for chip manufacturing around the world. It is estimated that China is ready to invest more than $150 billion by 2030. South Korea has adopted a series of aggressive incentives, aiming to encourage about $260 billion in chip investment over the next five years. The EU is seeking more than $40 billion in public and private semiconductor investment. Japan will spend about $6 billion to double its domestic chip revenue by 2030. Semiconductors are used in nearly every electronic device, from smartphones and cars to military equipment and medical and health equipment, and a range of major industries are completely dependent on chips. The recent “chip shortage” that has roiled supply chains has highlighted that without these tiny technological components, a considerable part of the global economy would shut down and related jobs would be lost.

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