“The U.S. Senator is negotiating a chip development plan. It plans to invest US$52 billion in 5 years to substantially boost the development and production of domestic semiconductor chips.” Reuters quoted a source on the 15th as saying that the United States hopes to solve the problem from the root cause. The dilemma caused by the “chip shortage”, and intends to compete with China in the semiconductor industry. This week, the United States may hold the second “chip summit” to demand more investment from foreign companies.
U.S. semiconductor strategy targets China
The plan overview document obtained by Reuters shows that the plan includes an emergency supplementary appropriation of 49.5 billion US dollars as a funding arrangement for the support of the chip industry in the US “National Defense Authorization Act” this year, thereby promoting the “National Defense Authorization Act” and the semiconductor industry. “Rapid implementation” of relevant provisions. The plan proposes to invest 39 billion US dollars to promote US chip research and development and manufacturing, and allocate 10.5 billion US dollars to carry out a series of plans related to the development of the chip industry, including the construction of the US National Semiconductor Technology Center, the implementation of the “National Advanced Packaging Manufacturing Project” and several research and development projects .
According to reports, the aforementioned US$52 billion chip plan is closely related to the current Sino-US semiconductor industry game. The plan outline document clearly pointed out that China is actively increasing investment in semiconductor manufacturing in order to control key technologies, with a total investment of more than 150 billion US dollars. The United States also urgently needs related funds “for national economic security and national security purposes.” The US$52 billion chip plan is expected to be part of the so-called “Endless Frontier Act” being brewed by the US Congress and will be discussed by the Senate within a week starting on the 17th. Senate Democratic leader Schumer stated that the “Endless Frontiers Act” will pass a series of legislation to “promote investment in the US semiconductor industry, ensure that China pays for its predatory behavior, and boost America’s advanced manufacturing, innovation, and critical supply chain.” .
Rare “car shortage” plagues the United States
When American politicians proposed a plan to compete with China’s semiconductor industry, the problem of chip shortages in the United States, especially in the automotive industry, is becoming more and more serious. “The Wall Street Journal” said on the 14th that data showed that the shortage of chips has led to a reduction of more than 1.2 million cars in North America. As of the end of April, the total number of auto dealers’ in-store inventory and vehicles in transit was less than 2 million units, which is only half of normal sales, a record low in more than 30 years. However, the demand for car purchases caused by the new crown epidemic continues to rise. At present, the actual selling price of many car dealers is thousands of dollars higher than the quoted price.
According to reports, some car dealers’ inventory is only 1/3 of the usual, and the waiting period for new car orders is generally more than 4 months. Some car dealers even suggest that customers who urgently need to buy a car should give priority to second-hand cars. Some car dealers said that many customers were dissatisfied when they heard that only the simplified version of their favorite models were on sale due to a shortage of chips. “But they eventually returned to me to pick up the car because the shortage is very serious. Other stores have already exhibited cars. It’s all sold out.”
“Small chips bring big problems,” Deutsche News Agency reported on the 15th. The latest research report released by the Munich consulting company AlixPartners estimated that 3.9 million cars worldwide could not be produced due to lack of chips in this year alone, and the value is equivalent to About 110 billion U.S. dollars, almost double the estimate at the end of January.
Volkswagen expects that due to the lack of chips, it will produce about 100,000 cars less in the first quarter. American car giant Ford estimates that the loss caused by the chip shortage this year is about 2.5 billion U.S. dollars. Yonhap News quoted industry sources as saying that due to insufficient chip inventory, the production lines of many popular models of Hyundai Motor and Kia will be forced to suspend production this week.
The United States and Europe urgently seek Asian production
In response to the global semiconductor shortage, the US government will once again convene a “chip summit.” Bloomberg said that US Secretary of Commerce Gina Raimundo plans to hold a video conference with relevant companies on the 20th to discuss solutions to the shortage of semiconductor chips. According to multiple sources, in addition to American semiconductor manufacturers such as Intel, Samsung Electronics and TSMC will be invited to participate again, and semiconductor demand companies General Motors, Ford, Google and Amazon will also participate. The US Department of Commerce stated that the meeting will “conduct an open and honest dialogue on semiconductor and supply chain issues.” The US government held its first “chip summit” on the 12th of last month to discuss the issue of chip supply shortages, but no substantive results were achieved.
The sense of crisis in Europe is also strengthening. The European Union had put forward a plan in March that it would invest heavily in setting up factories before 2030 to double semiconductor production in the region. “Nihon Keizai Shimbun” said on the 16th that the United States and Europe are seeking investment from Asian chip manufacturers such as Samsung and TSMC to help increase production capacity. Reuters disclosed that TSMC is expected to expand investment in its Arizona plant, but progress in negotiations with Europe is limited. South Korean media said that Samsung Electronics is considering setting up semiconductor processing factories in the United States, but it may face more investment requirements from the United States in the future.
“In the first quarter of this year, Russia’s beef exports to China reached 26 times that of the same period last year.” Russian Satellite News Agency quoted Veronica Nikishina, general manager of the Russian Export Center, as saying on the 15th that despite the new crown epidemic. Difficult, but Russia is still “systematically increasing business and trade ties with China.”
“This record number achieved in all countries in difficult times is largely related to the increase in Russia’s exports of food and agricultural products to the Chinese market,” said Nikishinna. In the first quarter of this year, Russia-China trade volume exceeded 28 billion U.S. dollars, an increase of 15% over the same period last year, of which Russia’s exports to China were approximately 13.5 billion U.S. dollars. The export value of non-raw materials and non-energy commodities was US$4 billion, a year-on-year increase of 40%. “In the first quarter of this year, Russia’s beef exports to the Chinese market reached 26 times that of the same period last year. At the same time, Russia’s exports of poultry products to China have also increased well.” She also said that it is expected that this year’s exports of confectionery to China will also increase. Significant growth occurred. According to the Agricultural Export Center under the Ministry of Agriculture of Russia, Russia exported 1.8 million tons of agricultural products to China from January to March this year, amounting to US$1.09 billion.