Investments in semiconductor manufacturing and innovation matter more than bans and sanctions.
U.S. Secretary of Commerce Gina Raimondo emphasized the importance of domestic innovation over export controls in competing with China, citing the CHIPS and Science Act as a historic investment in the nation’s semiconductor industry. While the Biden administration has imposed sanctions and rallied allies to curb China’s access to advanced technologies, Raimondo believes the key to winning lies in innovation rather than restriction. Despite U.S. controls, Chinese companies continue to circumvent bans, showing resilience in their tech advancements. With President Trump set to take office in 2025, the future of the CHIPS Act remains uncertain, as his administration favors deregulation and private investments over federal subsidies. This uncertainty has prompted a rush among subsidy applicants, while companies like SoftBank signal optimism with significant investment plans.
My Take
Innovation is the real battleground in the semiconductor race. To ensure sustained technological leadership, policymakers should support collaborative ecosystems that combine private investment with strategic public support, such as IMEC, Sematech, and DARPA.
#Semiconductors #CHIPSAct #Innovation #ChinaTech #AI #GlobalTrade #TechPolicy
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Credit: Tom’s Hardware
This post was enhanced with AI assistance, thoroughly reviewed, edited, and reflects my own thoughts.