Latest news with #chipwar
South China Morning Post
3 days ago
- Business
- South China Morning Post
Springtime for China's engineers and scientists. In US, not so much
Out of curiosity, I asked ChatGPT which side is winning the chip war. It replied that it was too early to say, characterising it as 'a complex and ongoing situation with no clear winner yet'. Impressive! Advertisement But while that may be true at a competitive national level, it seems pretty clear that individually, engineers and researchers in chips and other related tech fields have received a great boost in career and prestige in China, likewise the firms and research institutes that hire them. It's rather different in the United States. The situation is not an accident, but rooted in the respective national or state policies of Beijing and Washington. Consider the technical or industrial responses of China to Washington's chip war. They involve increased domestic production in the semiconductor industry to achieve self-sufficiency; reducing reliance on foreign technology, especially from the US; massive resource commitment to advanced chip research and manufacturing; strategic state subsidies; and ramping up even legacy and less advanced chips. The latter is necessary both to try to squeeze the most computing power out of older chips – in the absence of the most advanced ones – and to counter US restrictions that now target even less powerful chips and software. China therefore needs more and more engineers and researchers. Contrast that with US chip policy, which focuses on trade restrictions, sanctions and regulations, not to mention the White House's crackdowns on elite universities. Advertisement They aim to deny China's access to advanced chips, technology, and manufacturing equipment, and are being applied not only to US firms but those of allied countries such as the Netherlands, Japan and South Korea. As a result, they severely hamper their business in the world's biggest chip market, as well as their ability to fund future research and development. The latest trade restriction against China will reportedly cover chip design software, also known as electronic design automation. Germany's Siemens, a big player in this specialised field, will be affected.
Japan Times
24-05-2025
- Business
- Japan Times
How the U.S.-China chip conflict is evolving under Trump
The United States has taken aim at China's Huawei over the cutting-edge chips powering artificial intelligence, part of a shifting technology dispute between the two largest economies. Here is a look at how the U.S.-China chip war is evolving under U.S. President Donald Trump. Focus back on China A U.S. government statement this month showed how the Trump administration is seeking to change the ways the U.S. limits China's access to state-of-the-art semiconductors needed to develop AI. The U.S. Commerce Department said on May 12 that it would rescind the "AI Diffusion Rule," which was issued by Trump's predecessor Joe Biden to shield American chips from Beijing. Set to take effect on May 15, the rule would have imposed three tiers of curbs, allowing trusted nations to freely import AI chips but controlling or banning their export to lower-tier countries like China. It "would have stifled American innovation" while harming U.S. diplomatic ties with "dozens of countries," the commerce department said. The same statement reminded companies that using Huawei Ascend — the Chinese tech giant's most advanced chip — "violates U.S. export controls." It warned of "potential consequences" if U.S.-built AI chips were used to train Chinese AI models. The announcement aimed to "refocus the firepower" of AI curbs squarely on Beijing, said Lizzi Lee, a fellow on the Chinese economy at the Asia Society Policy Institute. Manoj Harjani, a research fellow at Singapore's S. Rajaratnam School of International Studies, agreed, saying the policy turn meant "the spotlight (would be) clearly on China and Huawei." Different from Biden Analysts said that Trump's approach to chip controls marks a distinct shift from Biden. The latter relied on multilateral coordination with allies to keep Beijing out of the loop, said Marina Zhang, an associate professor at the University of Technology Sydney's Australia-China Relations Institute. In contrast, Trump's recent measures "adopt a more selective and bilateral approach," Zhang said. "(The policies are) flexible enough to accommodate allies' demands and protect U.S. firms' global market positions, yet continue to aggressively target specific Chinese companies like Huawei through unilateral measures," she said. Harjani noted that Trump was often viewed as a leader who "does not care much for allies and partners." His chip policy, Harjani said, "runs counter to this assumption" as it includes efforts to create new AI-focused partnerships with allies. Beijing backlash Beijing has accused Washington of "bullying" and abusing export controls to "suppress and contain" China. The fighting talk shows that Beijing "will not yield easily," Zhang said. However, she said the restrictions would significantly hamper Huawei's access to "crucial" U.S. chipmaking technology. "The AI competition has entered an accelerated and potentially dangerous phase, complicating future negotiations" on global AI governance, Zhang added. China has already made impressive strides in AI development, with homegrown startup DeepSeek shaking up the technology sector this year with a chatbot that seemingly matches the performance of U.S. competitors at much lower cost. Chinese firms like Alibaba and Xiaomi have announced huge investments in AI in what experts say feeds into a national goal to cut reliance on foreign suppliers. "It's part of a broader mobilization happening domestically," Lee said. "The strategy is not to beat the U.S. — it's to be good enough in the short term, while buying time to build domestic capacity and catch up to the cutting edge." Tech rivalry The AI rivalry is playing into broader trade tensions between Beijing and Washington. The two sides traded tit-for-tat tariff hikes after Trump took power, but this month dramatically slashed levies on each other's goods for 90 days, signalling a detente for now. Lee, from the Asia Society, said the trade truce was "never going to hold tech policy at bay," noting the U.S. backlash against Huawei just days after crunch bilateral trade talks in Geneva, Switzerland. "Tariffs can be dialed up or down. Tech competition, by contrast, is hardening into the architecture of national security policy for both sides," she said. "If the U.S. doubles down on blacklisting key Chinese AI players, it's hard to imagine Beijing making big concessions elsewhere."
Malay Mail
07-05-2025
- Business
- Malay Mail
From brain drain to brain gain: Youth opportunities in the semiconductor space — Lim Yi Wei
MAY 7 — What's the deal with semiconductors? You might be wondering why semiconductors became so hot, and what shifting from 'From Made-in-Malaysia to Made-by-Malaysia' means. More importantly, what's in it for me? Semiconductors power our devices and technologies, from smartphones, cars, data centres, and artificial intelligence (AI) systems like ChatGPT. The onward march of digitisation, increased demand for faster, energy-efficient computing, and geopolitical tensions have spurred a global semiconductor race, or a 'chip war'. While Malaysia has a longstanding reputation as a manufacturer, the National Semiconductor Strategy (NSS) seeks to develop our front-end capabilities in terms of chip design and advanced packaging, among others. Since its official launch last May involving fiscal support of USD5.3 billion (≈RM25 billion), the Selangor State Government via its executing agency Selangor Information Technology and Digital Economy Corporation (SIDEC) has strongly supported the NSS through the pursuit of 3I's: investments, infrastructure, and intellect. When launching the first Malaysia Semiconductor Integrated Circuit (IC) Design Park in August 2024, SIDEC CEO Yong Kai Ping announced its full occupancy, and to expect the launch of the second IC design park in Cyberjaya in 2025. According to the author, addressing brain drain takes time, but the semiconductor sector can't afford delays — geopolitical tensions and looming US tariffs bring fresh uncertainties, and the industry's talent shortage needs urgent attention. — Reuters pic In March, I joined a SIDEC delegation to Taiwan, led by Selangor State Exco of Investment, Trade and Mobility, YB Ng Sze Han. We met several semiconductor giants such as TSMC, Vanguard International Semiconductor Corporation, and MediaTek. Besides promoting Selangor's attractiveness, SIDEC is proposing a 30 per cent local-content policy, which will allow Malaysian original equipment manufacturers (OEMs) and original design manufacturers (ODMs) to enter the IC design supply chain in specific sectors like data centres, electric vehicles (EVs), and aerospace. Youth opportunities in Selangor 1. Competitive salaries comparable to Singapore and Vietnam According to Malaysia Semiconductor Industry Association (MSIA) president Datuk Wong Siew Hai, Malaysia loses an average 15 per cent of semiconductor talent annually to brain drain. And understandably so – conventional engineering roles offer starting monthly salaries of RM2,800 – RM3,500; similar roles in Singapore or Taiwan pay upward of RM6,000. Today, the IC Design Park offers a salary of RM5,000 – RM6,000 for undergraduate engineers, while master's degree holders can earn upwards of RM7,000. Each IC park requires around 400 – 600 engineers in computer science and mechanical and electrical engineering. The Malaysia Semiconductor Recruitment Day 2024 organised by SIDEC attracted 2,000 turn-ups, 3,000 screenings, and 25 leading semiconductor companies over two days; some secured jobs on the spot. Besides attractive salaries, the IC design parks also factor accessibility (for logistics and shipping) and lifestyle e.g. public transportation, F&B, retail, recreational facilities, and schools. 2. Gain practical application through industry-varsity collaborations In March 2024, NXP signed a Memorandum of Understanding (MOU) with Universiti Malaya (UM) to conduct a series of workshops towards the aim of designing an elective course for the university curriculum in the next academic year. NXP and Universiti Putra Malaysia (UPM) also established the UPM-NXP Collaboration Laboratory to provide opportunities for research, practical application, and a pipeline to absorb talented graduates into NXP's workforce. Encouragingly, other universities have been organising talks with semiconductor companies to promote women in STEM. Last month, the Malaysian Investment Development Authority (MIDA), the Federation of Malaysian Manufacturing (FMM), and Bintang Capital Partners (Bintang Capital) signed an MOU introducing the Bintang Semiconductor Impact Fund I (BSIF I). Besides its core business of investing, BSIF I aims to support carbon transition initiatives and career development opportunities for women. 3. Upskilling and international exposure via the Advanced Semiconductor Academy of Malaysia (ASEM) During our trip, ASEM signed a MOU with the National Yang Ming Chiao Tung University (NYCU) and National Tsing Hua University. Malaysian engineering students and researchers can now join exchange programmes and access advanced research and development (R&D) labs in Taiwan. ASEM also manages two programmes in partnership with ChipInventor, a Brazil-developed cloud-based semiconductor chip design platform: The National Semiconductor Excellence Programme (NSEP) for Year 3 and 4 undergrads, recent graduates, and new hires in electric and electrical (E&E) engineering, computer science, or related fields. Applications are open for the July and September intakes. The Global Semiconductor Exchange Programme (GSEP) for undergrads and fresh grads in a broad range of engineering streams, and new hires. Applications are open for the August intake. Last week, 30 students departed for the Shenzhen Institute of Information Technology (SZIIT) with full scholarships. ASEM's partnership ecosystem that combines academic institutions, semiconductor players, and a job portal creates a direct pipeline between its alumni to enter the workforce. Universities include UM, Universiti Kebangsaan Malaysia (UKM), Unisel, Sunway University, Monash University, New Era University College, and Xiamen University Malaysia. A future worth staying for Our brain drain problems cannot be solved overnight. Geopolitical tensions and the US tariffs issue have introduced uncertainty in financial markets. Currently, tariffs have not been imposed on semiconductors, but we must be prepared. The talent crunch in our semiconductor industry must be tackled sooner than later. In an age where 'work from home' (WFH) is possible, and mental health and work-life balance prioritised over 'looking busy', semiconductor companies and universities should resist manufacturing a workforce purely for industry. Driving innovation and moving up the value chain must go hand in hand with better, fairer and more inclusive workplaces that are engines of wellbeing. If the National Semiconductor Strategy (NSS) can deliver this well, we can build a future our young engineers will find worth staying for. * Lim Yi Wei is the Kampung Tunku state assemblyman and DAP Selangor public policy bureau chief ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
