Getting the Best AI Requires Major Investments, National Support
If you have paid attention to the tech news or even the auto industry news in recent months, you are aware how much both are feeling the pinch of not enough computer chips. Whether it is the kinks in the supply chains, that are attached around the world, or whether it was the result of this historic pandemic it matters very little. The facts are more and more everyday products in our lives are requiring more and more chips. Big chips, little chips, or medium-sized chips, are all in short supply.
So China has decided to invest heavily in producing more of these valued chips. According to an article from cnbc.com, China isn’t playing around. Chinese artificial intelligence chip start-up Axera has raised 800 million yuan ($126 million) from investors including food delivery giant Meituan.
Beijing has made boosting self-sufficiency as well as research and development into semiconductors a top priority, with the country’s industry still relying heavily on foreign technology. Chips, which go into everything from smartphones to cars, are seen as strategically important by governments.
Keep in mind that Tencent and other market giants in China have invested just as enthusiastically as the government has. Last year, Tencent invested in Shanghai-headquartered Enflame Technology. Tencent also launched three of its own chips.
Now all of this is great news in terms of China’s efforts towards increasing the world’s chip supply, however, this news comes with a lot of concern by the U.S. government and other tech companies. Giving China entry into American-made platforms with their chips is an issue long of concern.
The real question is whether the U.S. is willing to match China with investments in producing chips and building factories at home?
There is hope for American made on the label of the next generation of chips and it comes from a source in Taiwan. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has started construction at a site in Arizona where it plans to spend $12 billion to build a computer chip factory, it was announced in June of 2021.
TSMC is expected to be one of several companies, including Intel Corp (INTC.O) and Samsung Electronics Co Ltd, competing for some of the $54 billion in subsidies for the chip industry that advanced in the United States Senate last week.
Reuters previously reported that TSMC plans to build as many as six factories at the Arizona site over a 10- to 15-year span.
And that will be the only sure way to unwrap the chip supply chain. At least those made here in Arizona won’t have far to travel. read more at cnbc.com
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