The introduction of the US chip bill puts China's chip industry at a critical moment
China News Service, Beijing, August 12 (Reporter Liu Yuying) US President Biden signed the "Chip and Science Act" this week. This bill aimed at enhancing the competitiveness of the domestic semiconductor industry in the United States will have a profound impact on the global semiconductor industry pattern. The impact will also promote the acceleration of the localization and substitution process of China's chip industry.
The "Chip and Science Act" is divided into three parts: Part A is the "Chip Act of 2022"; Part B is the "R&D, Competition and Innovation Act"; Part C is the "Supreme Court Security Funding Act of 2022".
The bill proposes a number of support measures for the U.S. semiconductor industry, including $52.7 billion in supplemental appropriations for the semiconductor industry and about $24 billion in tax credits for semiconductor manufacturing and semiconductor manufacturing equipment. The United States has established four major funds to allocate $52.7 billion for the purpose.
In addition to supporting the development of local chip manufacturing, the bill also proposes in provisions that prohibit companies that receive federal funding from significantly increasing the production of advanced process chips in mainland China for a period of 10 years. Companies that violate the ban or fail to correct this violation may need to Full refund of federal grants.
Han Xiaomin, vice president of Aijiwei and general manager of consulting business, said that the chip bill restricts China's chip industry mainly in two aspects: First, it continues to prohibit supply chain resources such as equipment and materials related to advanced manufacturing from being given to local Chinese enterprises, suppressing China's The research and development progress of enterprises in the field of advanced manufacturing; the second is to require chip companies supported by the Chip Act not to invest in advanced technology in mainland China, and continue to separate the Chinese market and the global supply system. In the short term, the impact will be great, especially for high-end foundry and memory related to advanced manufacturing processes.
Wei Yuhuai, executive president of Zhongcheng Think Tank, said that the US-led CHIP4 alliance mentioned in the chip bill will block production capacity, technology and standard sharing, semiconductor equipment and materials, etc., which will have a relatively large impact on China. In the short term, it will affect the security of China's semiconductor supply chain and the development of China's electronics manufacturing industry. It will further impact the rise of China's science and technology field in terms of technology research and development, talents, and capital, and gradually form a de facto decoupling.
Li Wei, a professor at the School of International Relations at Renmin University of China, told the media that the U.S. passed this bill to force chip companies to choose sides between China and the United States. .
Wei Shaojun, chairman of the Integrated Circuit Design Branch of China Semiconductor Industry Association, previously said that the development of China's semiconductors is facing a very critical moment, which can be explained by two aspects: external and internal problems. From the outside, the external situation is getting more and more severe; domestically , the independent development of China's semiconductor industry is also entering a critical moment.
It is understood that China has "stuck neck" problems in the three core links of chip design, materials and equipment. High-end chips are highly dependent on overseas supply. The import value of chips has exceeded that of oil for many years. In 2021, the import value of chips will reach US$432.6 billion. In addition, operating systems and high-end lithography machines are still monopolized by foreign companies, threatening the security of the entire chip industry and supply chain.
In the face of internal and external troubles, it has become a consensus to develop localized alternatives. In the past three years, driven by the dividend of the Science and Technology Innovation Board, the localization strategy, and the lack of cores, China's semiconductor industry has made great progress, and has made great progress in technological breakthroughs, talent cultivation, enterprise development and capital.
Wei Yuhuai believes that the semiconductor industry itself has a huge investment and a long cycle. It is urgent to break through the key core technologies of "stuck neck". We must adhere to the problem orientation and give full play to the advantages of the new national system. We should continue to increase investment in the semiconductor industry, unblock semiconductor capital channels and fund support, and do a good job in capital management and effective tracking of semiconductor projects.
In addition, the leading role of leading enterprises in the industry should be encouraged. Lin Xueping, general manager of Beijing Lianxun Power Consulting Co., Ltd. believes that the leading companies in the supply chain, whether it is Huawei's Hubble Investment Company or Lenovo's investment in specialized, special, new and small giant companies, are aimed at supporting further breakthroughs in chips.
"In the long run, the chip bill will further accelerate the process of domestic substitution of semiconductors, and China's chip industry will have a relatively large development potential. In addition, through the huge domestic market dividends and demand, it can still attract many international companies to invest in China. and development," Wei Yuhuai said. (Finish)
