How the U.S. is faring against China in computer chip race

The global competition to secure access to semiconductors is perhaps the most vital competition of all the battles for resources on the planet. Economic historian Chris Miller joins CBS News to discuss how lawmakers are addressing the challenge and where the U.S. stands in relation to China.

[tonyatgoogle]

American govt is the type of kid that will use any dirty tricks to win a race. Fair competition is only acceptable if the US is winning. 😂😂

[AIPretendingToBeHuman]

I recommend the YouTube channel "Inside China Business" -- the host makes a great point that consumers don't buy chips -- they buy phones, cars, tvs and couldn't care less about the components (e.g. due you really care that your iPhone has 3, 5, or7nm chips ?). His point that China a couple of years ago was more than happy to buy American chips and then put it into Chinese consumer products; but due to the sanctions are now using Chinese chips in Chinese products (e.g. Huawei phones, Byd Autos) and selling the products at a fatter profit margin than just selling chips. This is only expected to get worse as the Chinese continue to lower the cost of the components in the supply chain (which on Huawei products is reportedly 90-95% made in the mainland.) The end result of all the protectionist government policies will be similar to Pharmaceuticals -- the US consumer will pay a lot more than the rest of the world for the same product.

[Albions]

Still telling the world on Free Market Enterprise?

[mgronich]

Didn't answer the question, how is the US faring against China? Or the accompaning question, how fast is China catching up? The US ban on Nvidia selling chips to China has been a huge boon to Huawei and other Chinese GPU makers. Huawei, Biren, SMIC and others are getting 10's billions in sales because they have a protected china market. Those sales supply funds for R/D that will be larger than than their US counterparts, even with the subsidies from the Chips act. China will be banning Intel/AMD cpus starting 2027. Who's going to buy all those intel chips that'll be built using intel's new fabs being built with $100B in new investment?

[brucej]

Not a word mentioned Dutch not allow to sell Chip making machine to China

[Allmoney]

Better to trust Russia chips rather than Egyptian and Israel chips.

[devondevon]

3:22 Four countries accounted for 100 % of the advanced semiconductor market share? With Taiwan accounting for 68%, you can see why the US is willing to defend it.

[x-men-]

8.5B American taxpayers money is given away. Those rich companies have the money to invest themselves if they want to survive. Putting 8.5B to assist SSN, seniors, teachers, firefighters, …..make more sense

[Daveyjdigital]

Why haven't they past HR 20 yet ridiculous

[CJinMono]

It's disappointing that the interviewer asked about the investments in the technology (probably knowing support is bipartisan) but didn't get into legislation regarding its use (other than denying access to China).

[bigmantrue]

For years, China relied on buying chips from the US, using money from selling cheap goods to Americans. But now, with US politicians ban chip exports, China is rethinking its strategy. This pressure is driving China to boost its own technology. China may soon appreciate the US for catalyzing this shift, as it's prompting China to enhance its tech and upgrade production—a move it hadn't deemed necessary in its staunch belief in the "free market".

[zomblog]

NVIDIA is now one of the largest companies in the world, as well as Microsoft who is going to start making their own chips, and APPLE is already making their own chips. Also, Intel & Samsung are bringing high end fabs to America. USA is on the right pace to stay ahead in the tech space

[NoreenHoltzen]

We were laughing at China never producing quality cars, until BYD came along. Even though it is inevitable that China will eventually produce the fastest chips, I don't think the US will remain too far behind. By 2040 or so, the US can produce slower chips than China but still they will be useful for slower tasks and have an okay market.

[superchargerone]

weird... the grant isnt a subsidy according to american lingo. seems like the english as spoken by the rest of the world is different to american engrish

[gfan]

ASML is getting around the sanctions by replacing US tech with Chinese ones and is planning building factories in China. On the othet hand, China started building fabs using alternative methods to make chips not using DUV/EUV, although this is in the early stages but future production looked promising. Similar tech was also patented lately by Intel and a Japanese company. TSMC is moving to Japan and no longer the US, the fabs are already completed, Japanese government reimburse TSMC 3.8 billion dollars which is about 40% of their total cost, production will begin end of this year. Japan will be the black horse in this chip war.

[frhyuhy]

The US has banned ASML, a Dutch company, from selling its photolithography equipment to China. The sole supplier, for the equipment to manufacture the newest high density chips. The Chips act is to compete with companies like TSMC that has a near monopoly on the production of all the AI chips. A Taiwanese company not Chinese.

[wyntoncolter]

This is the race to obtain the means to be the first to have the most energy efficient, faster and power chips to be able to process and handle Artificial Intelligence.

A.L. definitely plays a huge role in the Chip Wars..Mass production to not only create more Jobs but be a leading innovator in big tech.

[js]

its just such a bad investment, when you have only pinches of wheelbarrows of usable materials. should just outsource you for the development, as it has been. but if the will gives to take responsibility then sure, of coarse.

[lokesh]

AI led UrbanSpaces Management of Movements and Public Utility Infrastructure is the real need.

[kristinchong]

Thank you Miller.

I’m old and I don’t know anything but yeah sure scale being profit incentive but it really being what do we think of the internet layers and East Asians being at best really really weird. And Anglo saxons kinda of a mystery to me.