The Chip Act USA and the potential unforseen consequences.

[jpaul]

poor yield this year, so they'll be going up, stock up.

No sane person wants a War it will not be pretty.

usa gave china supercomputer simulation capability for weapons design so it won't be too bad, unlike the russian nukes.


chip demand has decreased globally with recession, and their availibility isn't causing long car delivery times - I wonder what is.

 

[dlockers]

poor yield this year, so they'll be going up, stock up.


usa gave china supercomputer simulation capability for weapons design so it won't be too bad, unlike the russian nukes.


chip demand has decreased globally with recession, and their availibility isn't causing long car delivery times - I wonder what is.

I for one hope we are seeing the perpetual growth equation being retired.

 

[Flake87]

The Latest effect of the Chip Act with Chinese companies designing chips and then having them made by TSMC which are covered by the sanctions:

Chinese chip designers slow down processors to dodge US sanctions

Cutting-edge semiconductor companies tweak specs to comply with export controls.

arstechnica.com

 

[Colonel_Klinck]

The Latest effect of the Chip Act with Chinese companies designing chips and then having them made by TSMC which are covered by the sanctions:

Chinese chip designers slow down processors to dodge US sanctions

Cutting-edge semiconductor companies tweak specs to comply with export controls.

arstechnica.com

You've a problem with the Chips Act? IMO the US should have done this years ago.

If China is having to hobble their silicon to get it made that is fine by me.

 

[Flake87]

You've a problem with the Chips Act? IMO the US should have done this years ago.

If China is having to hobble their silicon to get it made that is fine by me.

The thread is about the unforseen consequences as opposed to the chip act itself, and that now China can't produce even the basic chips which are used in so many applications. The knock on effect because of the Wests reliance on China is likely to affect many users we might not expect.

 

[Colonel_Klinck]

The thread is about the unforseen consequences as opposed to the chip act itself, and that now China can't produce even the basic chips which are used in so many applications. The knock on effect because of the Wests reliance on China is likely to affect many users we might not expect.

They can still produce chips. They just can't produce high end chips. Stopping them producing high end chips is a good thing. They've been abusing sanctions on using US IP on chips for their military for years. This act is long overdue.

 

[jpaul]

read this the other day - chip problems somewhat a convenient pretext ; sound a big like the energy generation companies and windfall debate,
with the irony that energy shortage may itself limit their bounty .

BERLIN -- BMW reported better than expected quarterly net profit which rose 23 percent to 3.18 billion euros ($3.1 billion) thanks to high car prices, but warned that rising inflation and interest rates would start to weigh on sales in the coming months.

The higher profit comes despite lower sales volumes as supply chain issues including the semiconductor chip shortage that has curtailed output for automakers globally.

"Our solid third-quarter results underline that flexibility creates resilience ... we are on track to meet our targets for the year," CEO Oliver Zipse said in a statement.

Resilient demand and low inventories have allowed BMW and other automakers to raise prices, but with recession risks rising and central banks raising interest rates, analysts have predicted that consumers will start reining in major purchases.

BMW warned that rising inflation and interest rates will hit consumer purchasing power in the coming months and that its above-average order books are expected to "normalize, especially in Europe."

However, finance chief Nicolas Peter said that BMW expects its "positive momentum" to continue in 2023, with full-year sales slightly lower than in 2021 while sales of full-electric vehicles should double.

The company said its full-year operating margin forecast remains within a range of 7-9 percent.

Despite an overall 9.5 percent drop in sales from the same period last year, the automaker's third-quarter revenue jumped 35 percent to 37.18 billion euros ($36.49 billion).

 

[Flake87]

They can still produce chips. They just can't produce high end chips. Stopping them producing high end chips is a good thing. They've been abusing sanctions on using US IP on chips for their military for years. This act is long overdue.

I think you need to read some of the earlier posts because there's a lot more to you perhaps aren't aware of. The forced withdrawal of technical personnel means the silucon foundaries are inoperable even for low end chips. What's on the ships will take a few weeks to get here, and there is what ever stock they have, once it's gone then we'll notice.

 

[Colonel_Klinck]

I think you need to read some of the earlier posts because there's a lot more to you perhaps aren't aware of. The forced withdrawal of technical personnel means the silucon foundaries are inoperable even for low end chips. What's on the ships will take a few weeks to get here, and there is what ever stock they have, once it's gone then we'll notice.

Again its long overdue. Let them learn how to do it like the US, Taiwanese, Japanese and Koreans did. Yes this will put them back years but I don't have a problem with that. The slack will get picked up in time. People want to take business back from China well this is what it looks like. And the US should never have allowed them to be producing high end chips that they can use in their military and for AI and should have limited sales of high end silicon for the same reason. They've been stealing IP for years and finally the West has grown some balls. SMIC 7mn is meant to be pretty much an exact copy of TSMC 7nm.

 

[Colonel_Klinck]

The Chips Act has provided over $50b for fabs to be built in the US. The EU Chips Act will allow subsidies for fans to be built in the EU. This is all good news.

 

[Scougar]

The only issue is that it might be too little too late. Decades of underinvestment in US directly, in the name of cheap foreign parts in a country who's entire existence is threatened and has been for many many years.

 

[neocon]

Won't it drive China to develop itself? Probably not just going to capitulate are they.

 

[SPG]

Yes, that's a good thing as well.

 

[Flake87]

Won't it drive China to develop itself? Probably not just going to capitulate are they.

Unfortunately China is likely to look to expertise elsewhere, and there ever so conveniently just off their coast lies the Island of Taiwan with the worlds most advanced silicon foundaries, yes the chip act is in and of itself a good thing, but if as a consequence it starts World War III then maybe not so good.

The other issue as pointed out elsewhere the Chinese would not have allowed US technical people into their silicon facilities if they could have trained their own people to do those jobs, the fact is that they couldn't train their own people and that is why these factories are now shut. so many batteries and solar panels rely on these simple chips that unless the production of these products is also moved to the West we soon won't be able to get hold of them.

 

[Colonel_Klinck]

They already have hired top people from other countries. They hired one of TSMC top engineers and he took his whole R&D department with him which is why their 7nm is copy of the TSMC 7nm.

It has put them back 10 years and that is a good thing.

They aren't going to invade Taiwan for the fabs, apparently there are already plans in place to destroy the fabs if they were to invade so that would make it pointless. If they are going to invade they are going to invade. The only thing stopping them is the terrible cost they would pay for the attempt.

 

[Flake87]

They already have hired top people from other countries. They hired one of TSMC top engineers and he took his whole R&D department with him which is why their 7nm is copy of the TSMC 7nm.

It has put them back 10 years and that is a good thing.

They aren't going to invade Taiwan for the fabs, apparently there are already plans in place to destroy the fabs if they were to invade so that would make it pointless. If they are going to invade they are going to invade. The only thing stopping them is the terrible cost they would pay for the attempt.

The chip act has meant all those engineers have had to leave China and they don't have the expertise to continue production. BTW if you think the issue with the Chips is bad imagine what would happen if the Chinese decide to prevent the production of medicines or the export of them which the globalists have moved offshore with no short term way to produce those drugs.

 

[Colonel_Klinck]

The chip act has meant all those engineers have had to leave China and they don't have the expertise to continue production. BTW if you think the issue with the Chips is bad imagine what would happen if the Chinese decide to prevent the production of medicines or the export of them which the globalists have moved offshore with no short term way to produce those drugs.

Those engineers aren't America, they are Taiwanese. Yes all America engineers should have left.

If they want to play that game then we'd bring it back home. China's economy is in the toilet. Their property market has collapsed. They are in no position to hold the West to ransom.

This video is very informative on just how bad things are there.

 

[Flake87]

Those engineers aren't America, they are Taiwanese. Yes all America engineers should have left.

If they want to play that game then we'd bring it back home. China's economy is in the toilet. Their property market has collapsed. They are in no position to hold the West to ransom.

This video is very informative on just how bad things are there.

Yes I know they're Taiwanese, but the chip act is international and applies to them also and they have left China. I understand just how bad China's economy is but ccompanies have been stupid and put all their eggs in one basket and now cannot obtain supplies elsewhere. Take the sensors for the adblue diesel trucks use for emissions, a small part, a fragile part, and thanks to emissions laws the computers managing the engines won't allow them to run if the sensor is faulty. It could be reprogrammed but states like California won't allow it.

 

[Custor]

Protectionism. Could be coal or steel, but now semi conductors.
We trade for a reason.

 

[Flake87]

Protectionism. Could be coal or steel, but now semi conductors.
We trade for a reason.

Protectionism is where a country protects its own markets from cheaper imports, the chip act stops US and allied coutries selling to China on the grounds of military use, so it's more akin to sanctions.