In recent years, with the escalation of the U.S. chip control policy on China and the transfer of U.S. companies to the ** chain in the Chinese market, countries such as India, Vietnam and Indonesia are considered to be the main candidates to take over the U.S. chip industry chain. Many U.S. companies have increased their investment in these regions, including Micron, AMD, Lam Research and others. In particular, Intel's investment in Vietnam has further increased, and it is seen by the outside world as a possible chip manufacturing plant. However, Intel's plans were halted due to Vietnam's power** problems and political concerns. Indeed, the instability of Vietnam's electricity** has always been one of the bottlenecks affecting major chip manufacturers, so Intel's decision is not surprising. But what is overlooked is that Intel has always favored the Vietnamese market, and will not easily stop investing in Vietnam at the critical moment of seeking alternative markets. More hesitant is Vietnam's recent new rules, which will significantly increase the effective tax rate for multinational companies next year, which could affect the decision-making of foreign investors, especially since Intel recently halted its plans to increase the stake. In fact, Vietnam's tax rate for large multinational companies used to be only 5, while according to the minimum standard of the international tax system, it should be 15. The new rules are clearly a major obstacle to investment for companies such as Intel. In addition, Vietnam itself is concerned about the decline in foreign direct investment (FDI) under such circumstances. However, in order to comply and reduce the financial burden, Vietnam can only start with the tax rate. In this context, India, as the most likely country to take over the ** chain, has an opportunity.
At present, India's investment environment has been criticized, but there are still many companies that choose to build factories in India, even more than the investment in Vietnam. This is because India's "hype" is quite strong, and they believe that they have many advantages, such as subsidies for various industrial chains, huge market potential and low labor costs. In addition, India also has a high degree of favor for American chip companies, such as subsidies for Apple, Tesla, Micron and other companies. Vietnam's increase in the effective tax rate is likely to exacerbate the trend of these large multinationals investing in India. However, in the face of the changing international situation, India is not the only country that can successfully take over the US ** chain, and many companies still prefer to keep the ** chain in Chinese mainland if they have a choice. In addition, India itself has many shortcomings in the industrial chain environment, so it is uncertain who will become the real "receiver".
With the escalation of the U.S. chip control policy on China, many U.S. companies have shifted their best chains in the Chinese market and sought new opportunities and outlets. Vietnam, India and other countries are considered to be the main candidates to "take over" the US chip industry chain. However, Vietnam's first chip manufacturing plant was forced to suspend due to issues such as electricity** and a new tax rate. In this context, India is a beneficiary. India is attracting more and more investment due to its market potential, subsidy policies and favorable treatment for US chip companies. However, India itself faces many challenges in terms of investment environment and industrial chain development. Therefore, in the changes and competition in the global chain pattern, it is difficult for any country to dominate the world. In order to be invincible in the global chip industry, various countries need to work hard to improve the investment environment, strengthen the layout of the industrial chain and enhance their own competitiveness.