INFORMATION
Chips & Science Act was taken effected.
The Biden Administration enacted the Chips & Science Act (CSA) in August 2022. This act sets the direction for the semiconductor industry, particularly the return of semiconductor manufacturing to the U.S., the destruction of semiconductor products in China, and R&D/talent development in the U.S., with a future investment of $54.2 billion.
Companies that receive loans under this law and set up factories in the U.S. will not be able to produce advanced memory products in China for 10 years from the date of receiving the loan. The advanced memory products are the technology nodes shown in Chart, which are more miniaturized than the 28nm (nanometer) technology node.
In semiconductor production, improvements and innovations are being made every second in order to beat the fierce competition. As an engineer who had worked in semiconductor manufacturing for many years, I can say that the past 10 years is probably more than 30 years compared to the life span of a human being. Even if the factory in China were to resume production of memory products 10 years from now, who would want to buy such antiquated products?
The CSA is not merely a partisan ploy by the Democrats in anticipation of the midterm elections in the U.S. It is an attempt to force the U.S. to accept a loan (candy) in the U.S., which is in effect a death sentence (guillotine) for the Chinese mainland.
Chart: Global level, generation and manufacturing capacity by "technology node" of semiconductor products (2019)
