Biden signed a chip subsidy bill, the Ministry of Foreign Affairs: disrupt the international trade order

Jimu Journalist Zeng Lingzheng

Intern Huang Xin

On August 9, US time, US President Biden signed a total value of $ 280 billion in "2022 Chip and Science and Technology Act", of which $ 52.7 billion will be used to encourage chip production and research and development. At the same time, companies, which are prohibited from obtaining federal funds, have increased their production chips in China in China with a period of 10 years. The analysis states that the promulgation of the plan will promote some chip companies to return to the United States and enhance the capacity of American local chips. However, this will also catalyze the localization process of advanced process chips. In this regard, Wang Wenbin, a spokesman for the Ministry of Foreign Affairs, directly reprimanded the plan to distort the global semiconductor supply chain and disturb the international trade.

52.7 billion US dollars to support American chip production

On August 9, local time, US President Biden signed a total value of $ 280 billion in the 2022 Chip and Science and Technology Act (Chips and Science Act of 2022, hereinafter referred to as the "Act"), of which 52.7 billion U.S. dollars will be used to encourage chips Production and research and development.

Among them, $ 50 billion is used to establish the "American Chip Fund", of which $ 39 billion is used to encourage chip production, $ 11 billion to subsidize chip development; $ 2 billion for the establishment of "American Chip Defense Fund" The production of key chips was distributed from 2022 to 2026; $ 500 million was used to establish the "American Chip International Science and Technology Security and Innovation Fund" to support the establishment of a safe and reliable semiconductor supply chain; "American Chip Labor and Education Fund" to cultivate talents in semiconductor industry.

In addition, the bill also stipulates a series of preferential policies, such as creating 25%of tax credits for investment semiconductor manufacturing. The "Act" also requires that if the subsidy entity has an important transaction plan for the expansion of semiconductor production capacity such as "attracting attention from foreign entities" such as China, it is necessary to report to the US Minister of Commerce. After discussing the minister and the director of intelligence, it takes 90 days to make a decision to recover the subsidy.

US President Biden publicly stated that although the design and research and development of the United States have remained leading, only 10%of the world's semiconductors in the world are produced in the United States. "We need to create these chips in the United States to reduce daily costs and create employment opportunities."

Biden also said that the Act will also strengthen the national security of the United States, reduce the dependence of the United States to the source of foreign semiconductor, ensure that companies that accept taxpayer funds invest in the United States, and ensure that union workers establish new manufacturing factories across the country.

Or it will accelerate the second round of the advanced chip process.

The chip process refers to the width of the chip transistor gate, which is usually nanometer. The smaller the width, the greater the density of the transistor, the higher the chip performance. The wafer is the carrier of the chip and is also regarded as the "foundation" of the chip.

Yang Haiyan, a researcher at the securities company Shen Wanhongyuan, pointed out that the US promulgation of this bill was originally intentional to enhance the capacity of American chip manufacturing, recycle the industry's foundry capabilities, and avoid multi -degree dependence on the manufacturing power outside the United States. However, at the same time, the wafer founding capabilities or manufacturing capabilities in China and other countries, as well as the rhythm of the introduction of new technologies. The production capacity of China's high -end process chips is limited.

Pattern operations on the chip (source: Xinhua News Agency)

Huatai Securities analysts pointed out in the research report that according to IC Insights data, the total output value of American design companies in 2021 accounted for 68%of the world, but the chip produced by the United States only accounted for 12%of the world. Most of the products of the world's most chip design companies such as Nvidia and AMD are produced in Taiwan, China. The "Act" may attract companies to build factories in the United States in the long run, which may narrow the gap between the proportion of American design and manufacturing output value, and the regionalization of wafer foundry production capacity accelerates.

For the Chinese semiconductor industry, it is necessary to pay attention to the impact of restricted terms in the bill. At present, TSMC, Samsung, Hynix, and other companies have semiconductor factories in China. If these companies accept the subsidies of the bill, they may limit their construction/expand advanced process wafer fab in China.

Yang Haiyan further pointed out that the bill involves a small impact on the domestic mature process chip. For mature process chips, the localization rate of key equipment for some process chips has reached 15%, and some material products have been fully recognized in the field of mature process in the field of mature process, and the expansion of the wafer plant has high degree of expansion.

For advanced process chips, after the three years of domesticization in 2019-2021, some companies in the field of equipment/materials in this field already have a certain ability. Under the catalysis of the bill, the industrial chain is expected to restart a round of domestic alternatives from top to bottom. The market will start the second round of localization cycle.

Foreign Ministry response: The United States disrupted the order of international trade

On August 10, chip stocks in the United States fell sharply. As of the closing of U.S. stocks on August 10, the Philadelphia semiconductor index closed 4.6%. The US chip stocks fell collectively, the application materials fell more than 7%, the cores fell nearly 6%, Asley fell more than 5%, and Micron fell 3.74%.

At the same time, A -share semiconductor equipment stocks are strong. On the 10th, the Wind semiconductor equipment index rose 1.02%. Shengmei Shanghai rose 5.23%, Huafeng's surveying and control rose 1.28%, the northern Huachuang rose 1.72%, and Sino -Micro Corporation fell slightly by 0.28%.

On August 10, at a regular press conference of the Ministry of Foreign Affairs, a reporter asked questions that there were some clauses in the United States' "2022 Chip and Science Act" to restrict US companies in China. What are the comments in China. Foreign Ministry spokesman Wang Wenbin responded that the Act in the United States declared that it aims to enhance the competitiveness of the US technology and chip industries, but it provides huge subsidies for the American chip industry and promotes differentiated industrial support policies, including some restricted enterprises. The terms of normal investment and economic and trade activities in China and the normal scientific and technological cooperation between China and the United States will distort the global semiconductor supply chain and disturb the international trade. China has resolutely opposed this that the so -called "protection measures" of the law show a strong geopolitical color and is another example of the United States for economic coercion.

Wang Wenbin, Ministry of Foreign Affairs (source: Ministry of Foreign Affairs)

Wang Wenbin said that how the United States develops its own business, but it should meet the relevant rules of the WTO, in line with the principle of openness and transparent non -discrimination, and help maintain the security and stability of the global industrial chain supply chain. Cooperation setting obstacles should not damage China's legitimate development rights and interests. Sino -US economic and trade and scientific and technological cooperation is conducive to the common interests of the two parties and the common progress of humans. To restrict the decoupling will only harm others.

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