The Semiconductor Future
Microelectronics, nanotechnology and broad semiconductors are critical to the emerging technology advances like AI, quantum computing and AI. The United States Semiconductor Industry Association is concerned that China is doing all to catch-up: “under threat from [foreign] government policies that seek to localize supply chains and build state-backed national champions to compete abroad.”
China’s private tech companies have promptly answered the call. Baidu released its smart chip, Kunlun, last July; Huawei unveiled the world’s first 7nm microchip in August; Alibaba launched its semiconductor division Pingtouge last September; and this week smart phone maker Xiaomi announced it will reorganize its microprocessor subsidiary as part of a $1.5 billion AI strategy. (Fortune newsletter).
The SIA recommendation to ensure U.S. remains a leader:
- Triple federal funding for industry research to $5 billion a year
- Scrap immigration caps on qualified STEM candidates
- Protect intellectual property.
China is causing major dislocations across markets and sectors.
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