The chip bill has made a big noise, and the chip winter in the United States may be just beginning

The United States revised the chip rules and provided more than 50 billion US dollars to subsidize domestic chips, which seems to be conducive to enhancing the competitiveness of American chips. However, in fact, this may lead to a worse situation for American chips. The global chip competition thus opened, which will lead to greater losses for American chips.
The chip bill has made a big noise, and the chip winter in the United States may be just beginning
The global chip industry has undergone major changes due to the practice of the United States. The biggest change is the development of Chinese chips. In recent years, Chinese chips have made great achievements, breaking the gaps in memory chips, analog chips, radio frequency chips, and so on. The technological breakthroughs of Chinese chips meet the needs of more and more industries in China.
After making progress in chip design, because TSMC stopped manufacturing for a Chinese technology company for some reason, it made China aware of the shortcomings of chip manufacturing. In recent years, it has strived to develop chip manufacturing. With the efforts of China, China’s chip production capacity has surged from the top five in the world to the third in the world, and the chip production capacity has surpassed the United States.
China has made progress in chip design and chip manufacturing at the same time, promoting the rapid rise of China’s chip self-sufficiency rate. The chip self-sufficiency rate has exceeded 30%. With the continuous improvement of the domestic chip self-sufficiency rate, China’s chip import volume is rapidly declining. In 2022, China’s chip import volume decreased by 97 billion, an average of 260 million per day.
The chip bill has made a big noise, and the chip winter in the United States may be just beginning
At present, China’s largest chip manufacturing enterprises are still promoting the construction of four chip factories. It is expected that the completion of these four chip factories will make China’s chip capacity into the top two in the world. The progress of Chinese chips has caused a huge blow to the U.S. chip industry. The performance of many U.S. chip enterprises has declined over the past year, and the market value of the U.S. chip industry has also lost 150 million dollars, It can be said that American chips have entered a cold winter.
However, foreign media believe that American chips have just entered the cold winter, and the future of American chips is likely to be even more difficult, because the practices of the United States and the achievements of Chinese chips have had a huge impact on all economies in the world, and many economies have recognized the risk of relying on American chips, while Chinese chips ensure the safety of the industry made in China, which encourages them to develop their own chip industry.
Europe should be a fast-moving economy. The EU has approved a chip subsidy plan of 45 billion euros, hoping to revive its chip industry. Europe used to occupy 20% of the global chip market, but under the pressure of American chips, the market share of Europe in the global chip industry has now dropped to 8%. The EU launched a 45 billion euro chip subsidy plan to promote Europe’s share in the global chip market to 20%.
The chip bill has made a big noise, and the chip winter in the United States may be just beginning
Japan is an economy that has been drawn into the Sifang Alliance by the United States. However, Japan has not followed the United States wholeheartedly. Japan has earlier established a new chip enterprise with eight enterprises and cooperated with Europe to develop the 2 nanometer technology, which also helps Europe to develop the chip industry. Japan has done so because it once occupied 50% of the global chip market, but it has rapidly declined under the pressure of the United States. Today, Japan’s chip share in the global market is only 10%. Of course, Japan is not willing to continue to follow the lead of the United States. Therefore, on the one hand, it has joined the chip alliance of the United States, but at the same time, it is actively developing its own chip industry.
Recently, some things have happened in Britain, which is regarded as the younger brother of the United States. The 25 chip companies in the United Kingdom called on the United Kingdom to follow Europe and the United States to provide subsidies to the chip industry. Otherwise, these British chip companies will leave the United Kingdom and move to the European Union or the United States. Under their pressure, perhaps the United Kingdom will not provide chip subsidies, which undoubtedly brings new challenges to the US-led chip order.
The chip bill has made a big noise, and the chip winter in the United States may be just beginning
The United States still accounts for nearly 50% of the global chip market. However, under the influence of China, many economies around the world are developing the chip industry. The influence of American chips on the global chip market is bound to decline further. American chips used to gain rich profits with various hegemonies is gone, and the performance of American chips is bound to decline further, It can be said that the cold winter of American chips in 2022 is just beginning.