Introduction:
The semiconductor industry used to be America's greatest asset, but in recent years, China's rapid growth has worried the United States, as it has surpassed the United States in chip production. The United States** has come up with a $53 billion financial subsidy package to try to attract more companies to build their own semiconductor production bases. However, due to various constraints, the programme did not achieve the desired results. At the same time, China's growing chip production capacity has made the United States even more uneasy.
The U.S. has a worse wafer production capacity than China.
Although chips were created by Americans, the United States has long been a world leader in the chip industry. But when China's chip industry grows rapidly, the U.S. capabilities will be surpassed. According to the data, the U.S. produced only 12% of chips in 2020, compared to 16% in China. China's chip industry is expected to account for 24% of the world's market share in 2023, compared to 10% in the United States. This tendency makes the United States feel very uncomfortable, and they have been using various measures to curb China's integrated circuit industry, and at the same time, they are also trying to curb or delay its development.
Extension: China's fast-growing semiconductor industry.
In the past two years, China's chip industry has made great progress. According to Trendforce, 44 chip factories have already been built in China, and another 22 chip factories under construction will be completed within three to five years. It is estimated that by 2024, the world's chip production will exceed 30 million, and the output of Chinese mainland will be 8.6 million, an increase of 13% over the same period of the previous year, ranking first in the world, accounting for 287%。Such a large volume of production makes China a major component of the chip manufacturing industry.
Wafer production in the U.S. is in trouble.
The U.S.** has introduced a $53 billion grant package to stimulate companies to invest in their chip production. Some well-known companies, such as Intel, TSMC, Samsung, SK hynix, Micron, are preparing to set up new factories and are ready to offer subsidies. However, the implementation of the programme has been slow due to a number of problems in its implementation. The construction of new factories being planned by TSMC, Intel and a number of other companies has not met expectations, and some even doubt that they will go into production. The biggest reason for this is the lack of negotiations, permits, and suitable labor.
What's next: The dilemma of U.S. chip production.
Currently, chip production in the United States is in a dilemma. First of all, the cost of setting up and operating a chip factory is very high, especially in semiconductor equipment and technology, and the investment is high, so that many companies dare not set foot easily. Secondly, there is a shortage of talent in the United States, because there is a great demand for high-quality talents in chip production, but there is a large talent gap in the United States. Due to the above-mentioned reasons, the development of integrated circuit production in the United States is very slow, and it is difficult to compete with the rapid development of China's integrated circuit industry.
The U.S.** is stepping up subsidies to increase its wafer production.
Given the current state of chip production, the U.S. has made more investments, such as additional investments in chipmakers like Intel and TSMC, to encourage them to build more fabs. The U.S. hopes to use such subsidies to incentivize companies to invest more in U.S. production to boost their own wafer production. However, the industry generally believes that such subsidies will not make a difference in the short term. Even if the factories funded by ** were to be successfully built, it would take years to build one of these chips in the United States.
Next step: The U.S.** addresses the challenges posed by a lack of chip capacity.
The United States is facing many challenges in terms of policy, technology, and talent. First of all, it is necessary to introduce a series of measures to promote the development of the semiconductor industry, the main of which is to relax the supervision of the semiconductor industry and encourage scientific and technological innovation. Secondly, we should further strengthen investment in the semiconductor industry and give certain financial support and subsidies to encourage more enterprises to establish their own semiconductor production bases. Finally, by training a group of high-quality integrated circuit design professionals and technicians with international influence, the contradiction of China's shortage of human resources will be effectively alleviated, and the international status of the United States in the semiconductor industry will be enhanced.
The conclusion is that the United States has been left behind by China in terms of chip production capacity, which makes the United States very worried. The United States** has introduced a $53 billion financial assistance package to boost the country's chip production, but so far, this program has not worked as well as it should. At the same time, China has also made great strides in the production of integrated circuits, and is now the first country in the world to produce chips. The U.S.** intends to subsidize its own wafer production more in an effort to attract more companies to build new fabs. However, this kind of subsidy will not play a role in the near future, because it will take long-term work and investment to make the United States produce such integrated circuits. In order to maintain its competitive advantage, the United States must introduce more stringent policies and measures to promote its development.