The whole world is paying attention to this Tuesday, November 5, because the United States celebrates its presidential elections in which Kamala Harris and Donald Trump face each other to become the new president (for the first time in history) number 47 of the history of the country.
We say that the whole world is waiting, since The end result will have an impact on virtually every area and sector imaginable, and among them, one of the most affected there is It’s the chip industry. The rise of technology in general and more and more smart devices has led to These devices become a crucial aspect to continue the development of the technological sector.
The importance of this industry has caused a trade war between the main market powers, but this is not something new, it has already happened for 40 years between the US and Japan, but now curiously Both nations are united to prevent China from surpassing them.
This framework that contains blockades and sanctionsAs we said, its sole objective is stop China’s rise as a technological superpower, and as Thomas Sonderman, CEO SkyWater Technology Inc., has acknowledged to Bloomberg, a new administration is an opportunity to reassess and potentially rethink the deluge of chip policy measures, subsidies and controls to the US exports to China that have arrived in recent years.
The US Chip Law allocates more than $52 billion to boost national semiconductor manufacturing, reduce dependence on Asia and strengthen the country’s technological competitiveness. It seeks to create jobs, stimulate the economy and ensure American leadership in areas such as Artificial Intelligence. With this law, the US considers chip production as a matter of national security in its competition with China.
Sonderman assures that, overall, all the measures used to limit China have hurt the global chip industry more than helped. For example, in the event that Donald Trump wins, he has already expressed his preference for taking advantage of tariffs to attract the manufacturing of advanced chips to the US, compared to what was proposed in the Chips and Science Act of 2022 for financing and subsidies.
For its part, and although there has been dissent within the party around this law, Kamala Harris has advocated for this regulation and defends it as the necessary tool to protect US technological leadership against China. Intel CEO Pat Gelsinger shared last week that his company has not yet received funds to help build new facilities in Arizona and Ohio.
Still, he trusts that No matter who wins, this law will remain in place.since as he emphasized “The Chips Law was a bipartisan act with strong support from both sides of the aisle.” For this reason, the chip industry looks at the US presidential elections with uncertainty, since its financing and ability to close new agreements will be influenced by the winner of these elections.
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