Latest news with #ChipsAct
Khaleej Times
7 days ago
- Business
- Khaleej Times
Timeline: How the US-China semiconductor war has unfolded
The United States has in recent years sought to curb exports of cutting-edge semiconductors to China, with Nvidia and other US chip companies lobbying against its tough restrictions. As Nvidia says it will resume sales of a less powerful AI semiconductor model to China, here is a run-down of the microchip conflict: August 2022: Biden's Chips Act Joe Biden, then US president, signs a bill to boost domestic chipmaking, an industry Washington fears China could come to dominate through mammoth state-backed investments. The Chips and Science Act includes around $52 billion to promote the production of microchips, the tiny components that power almost all modern machinery. October 2022: Export controls Washington suddenly restricts exports of some high-end microchips -- crucial to the manufacturing of powerful AI systems -- to China on national security grounds. The rules, which also toughen requirements on the sale of semiconductor equipment, aim to limit Beijing's access to state-of-the-art chips with military applications. China says the United States is attempting to "maliciously block and suppress Chinese businesses". December 2022: Blacklist The US blacklists 36 Chinese companies, including advanced chip producers, severely restricting their use of American semiconductor manufacturing tech and designs. Many of them have close ties to China's defence sector, with some linked to efforts to develop hypersonic and ballistic missile systems. October 2023: US tightens curbs A year after those restrictions -- and following the November 2023 release of OpenAI's generative AI chatbot ChatGPT -- Washington tightens the screws on China. As the world discovers the powers of AI, the release by China-owned Huawei of a new smartphone featuring a powerful home-grown advanced chip also sparks US alarm. Attention has so far been focused on Nvidia's industry-leading H100 chip, but the export curbs are widened to other, lower-performing semiconductors made by Nvidia and its peers. December 2024 - January 2025: Biden's final moves In the weeks before Donald Trump returns to the White House, Biden imposes a series of new rules on high-end chip exports to China. One of them requires authorisations for exports, re-exports and in-country transfers -- a bid to avert any circumvention of chip supply to China from other nations. There are some exceptions for countries considered friendly to the United States, but most face a cap on imports of advanced chips. "The US leads the world in AI now -- both AI development and AI chip design -- and it's critical that we keep it that way," Commerce Secretary Gina Raimondo says. The new rules will take effect in 120 days -- giving Trump's incoming administration time to potentially make changes. January 2025: Deepseek moment Chinese firm DeepSeek's artificial intelligence chatbot soars to the top of the Apple download charts, stunning industry insiders and analysts with its ability to match its US competitors. April 2025: H20 blocked Nvidia has developed new H20 semiconductors -- a less powerful version of its AI processing units designed specifically for export to China. But the tech giant says it has been told by Washington that it must obtain licences to ship the H20s to China because of concerns they may be used in supercomputers there. May 2025: Trump reverses Biden-era controls The Trump administration rescinds some of the chip export controls, answering calls by countries who said they were shut out from crucial technology needed to develop AI. Some US lawmakers feared the cap would have incentivised countries to go to China for AI chips, spurring the superpower's evolution into a tech superpower. As an alternative, the US Commerce Department reminds AI actors that using Huawei Ascend, the Chinese tech giant's most advanced chip, violates US export controls -- something Beijing later slams as "bullying". July 2025: H20 sales resume Nvidia says it will resume sales of its H20 chips to China, after Washington pledged to remove the licensing curbs. CEO Jensen Huang is expected to attend a major supply chain gathering in Beijing -- his third trip to China this year, Chinese state media says.
NDTV
16-07-2025
- Business
- NDTV
A Timeline Of How The US-China Microchip War Escalated
China: The United States has in recent years sought to curb exports of cutting-edge semiconductors to China, with Nvidia and other US chip companies lobbying against its tough restrictions. As Nvidia says it will resume sales of a less powerful AI semiconductor model to China, here is a run-down of the microchip conflict: August 2022: Biden's Chips Act Joe Biden, then US president, signs a bill to boost domestic chipmaking, an industry Washington fears China could come to dominate through mammoth state-backed investments. The Chips and Science Act includes around $52 billion to promote the production of microchips, the tiny components that power almost all modern machinery. October 2022: Export controls Washington suddenly restricts exports of some high-end microchips -- crucial to the manufacturing of powerful AI systems -- to China on national security grounds. The rules, which also toughen requirements on the sale of semiconductor equipment, aim to limit Beijing's access to state-of-the-art chips with military applications. China says the United States is attempting to "maliciously block and suppress Chinese businesses". December 2022: Blacklist The US blacklists 36 Chinese companies, including advanced chip producers, severely restricting their use of American semiconductor manufacturing tech and designs. Many of them have close ties to China's defence sector, with some linked to efforts to develop hypersonic and ballistic missile systems. October 2023: US tightens curbs A year after those restrictions -- and following the November 2023 release of OpenAI's generative AI chatbot ChatGPT -- Washington tightens the screws on China. As the world discovers the powers of AI, the release by China-owned Huawei of a new smartphone featuring a powerful home-grown advanced chip also sparks US alarm. Attention has so far been focused on Nvidia's industry-leading H100 chip, but the export curbs are widened to other, lower-performing semiconductors made by Nvidia and its peers. December 2024 - January 2025: Biden's final moves In the weeks before Donald Trump returns to the White House, Biden imposes a series of new rules on high-end chip exports to China. One of them requires authorisations for exports, re-exports and in-country transfers -- a bid to avert any circumvention of chip supply to China from other nations. There are some exceptions for countries considered friendly to the United States, but most face a cap on imports of advanced chips. "The US leads the world in AI now -- both AI development and AI chip design -- and it's critical that we keep it that way," Commerce Secretary Gina Raimondo says. The new rules will take effect in 120 days -- giving Trump's incoming administration time to potentially make changes. January 2025: Deepseek moment Chinese firm DeepSeek's artificial intelligence chatbot soars to the top of the Apple download charts, stunning industry insiders and analysts with its ability to match its US competitors. May 2025: Trump reverses Biden-era controls The Trump administration rescinds some of the chip export controls, answering calls by countries who said they were shut out from crucial technology needed to develop AI. Some US lawmakers feared the cap would have incentivised countries to go to China for AI chips, spurring the superpower's evolution into a tech superpower. As an alternative, the US Commerce Department reminds AI actors that using Huawei Ascend, the Chinese tech giant's most advanced chip, violates US export controls -- something Beijing later slams as "bullying". April 2025: H20 blocked Nvidia has developed new H20 semiconductors -- a less powerful version of its AI processing units designed specifically for export to China. But the tech giant says it has been told by Washington that it must obtain licences to ship the H20s to China because of concerns they may be used in supercomputers there. July 2025: H20 sales resume Nvidia says it will resume sales of its H20 chips to China, after Washington pledged to remove the licensing curbs. CEO Jensen Huang is expected to attend a major supply chain gathering in Beijing -- his third trip to China this year, Chinese state media says.
Yahoo
06-07-2025
- Business
- Yahoo
Nvidia, Intel, Broadcom, Micron, AMD And Other Chipmakers Stand To Benefit As Trump's Tax Bill Increases Incentives To Make Semiconductors In US
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Chipmakers are likely to benefit from the 'One Big Beautiful Bill Act' passed by the Senate on Tuesday, as they will be eligible for an investment tax credit that can incentivize the semiconductor business. What Happened: According to the provisions of the tax cut bill proposed by President Donald Trump, the Big Beautiful Bill aims to temporarily increase an investment tax credit for semiconductor manufacturers till the end of 2026. It would raise the tax credit to 30% of investments in manufacturing facilities, from the current 25%, providing stronger incentives for companies to expand domestic production. Trump was initially critical of the Chips and Science Act, which granted awards worth $32.5417 billion and provided loans up to $5.85 billion to 32 companies, as per the Semiconductor Industry Association. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — However, Trump set up a new entity, the United States Investment Accelerator, within the Commerce Department, which now oversees the CHIPS Act program, as established by an executive order signed by him. The Big Beautiful Bill has now gone back to the House after narrowly passing in the Senate, before the President could finally sign it to make it into a law. These are the top chipmakers and the existing beneficiaries of the Chips Act that will benefit from this investment tax credit mentioned within the tax cut Stocks YTD Performance One-Year Performance Nvidia Corp. (NASDAQ:NVDA) 13.69% 22.58% Broadcom Inc. (NASDAQ:AVGO) 16.35% 56.08% Intel Corp. (NASDAQ:INTC) 8.21% -29.94% Qualcomm Inc. (NASDAQ:QCOM) 5.65% -20.36% Advanced Micro Devices Inc. (NASDAQ:AMD) 14.83% -15.49% Applied Materials Inc. (NASDAQ:AMAT) 15.95% -21.91% Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) 2.35% 11.34% Intel Corp. (NASDAQ:INTC) 8.21% -29.94% Texas Instruments Inc. (NASDAQ:TXN) 15.32% 8.37% Micron Technology Inc. (NASDAQ:MU) 39.40% -11.02% Microchip Technology Inc. (NASDAQ:MCHP) 28.62% -21.82% Analog Devices Inc. (NASDAQ:ADI) 15.99% 6.58% Coherent Corp. (NYSE:COHR) -12.16% 19.63% Corning Inc. (NYSE:GLW) 12.87% 37.22% Entegris Inc. (NASDAQ:ENTG) -11.08% -38.54% Globalfoundries Inc. (NASDAQ:GFS) -6.90% -22.05%Why It Matters: On March 4, during his joint address to Congress, Trump said, "Your Chips Act is a horrible, horrible thing." He also urged U.S. House Speaker Mike Johnson to "get rid" of it and use "whatever is left over" to "reduce debt or any other reason you want to." However, the Trump administration has skipped repealing the act with the Investment Accelerator entity and even managed to get the semiconductor firms to invest in the U.S. over and above the Chips Act this year. In early March, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) revealed its plans to inject $100 billion into U.S. advanced semiconductor manufacturing, significantly expanding its ongoing $65 billion Arizona initiative under the Chips Act and bringing total investment to $165 billion. Apple Inc. (NASDAQ:AAPL) has committed over $500 billion to U.S. investments, focusing on AI, silicon engineering, and expanding advanced manufacturing. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Photo courtesy: Shutterstock This article Nvidia, Intel, Broadcom, Micron, AMD And Other Chipmakers Stand To Benefit As Trump's Tax Bill Increases Incentives To Make Semiconductors In US originally appeared on Sign in to access your portfolio
Business Times
01-07-2025
- Business
- Business Times
Chipmakers win bigger tax credit under bill passed by Senate
[WASHINGTON] Sweeping tax legislation passed by the Senate on Tuesday (Jul 1) would make it cheaper for semiconductor manufacturers to build plants in the US, delivering a win to chipmakers and boosting US efforts to expand the industry domestically. Companies such as Intel, Taiwan Semiconductor Manufacturing Company (TSMC) and Micron Technology will be eligible for an investment tax credit of 35 per cent if they break ground on new plants before an existing 2026 deadline. That's a jump from the existing 25 per cent and tops an increase to 30 per cent envisioned in a draft proposal. The semiconductor manufacturing provision was tucked into a nearly 900-page bill that represents the heart of US President Donald Trump's economic agenda. House lawmakers are now set to take up the legislation with a goal of sending it to Trump for his signature by Jul 4. Increases to the credit would sweeten a key incentive created under the 2022 Chips and Science Act, a bipartisan law signed by president Joe Biden. The programme also includes US$39 billion in grants and as much as US$75 billion in loans for manufacturing projects, designed to boost the American semiconductor industry after decades of production shifting to Asia. The tax credit, which is not capped, was already likely to be costlier than those other forms of subsidies – a function of how much investment the Chips Act has spurred. In almost every case, it will account for the greatest share of incentives going to any one company, including those that did not win grant awards. Major beneficiaries of the grant programme include Intel, TSMC, Micron and Samsung Electronics. Trump earlier this year called for repealing the Chips Act, but lawmakers in both parties have shown little desire to eliminate subsidies that provide high-paying jobs in their districts, in a sector seen as critical to national security. The Commerce Department, meanwhile, has continued to implement the grant programme, while urging larger investments and reworking the terms of awards that took months to negotiate. So far, the Trump administration has secured increases in promised investment from TSMC, Micron and GlobalFoundries, which the White House has touted as evidence that Trump's policies are working. None of those included additional Chips Act grants beyond what had already been finalised or proposed. Still, more company spending on projects very likely means more foregone government revenue in the form of tax credits – a number that would grow if the Senate bill becomes law. Companies that commence projects by the end of next year can continue to claim credits for continuous construction after that date – a policy aimed at getting sites started while recognising that chip factories take years to build. BLOOMBERG
Yahoo
24-06-2025
- Automotive
- Yahoo
Struggling EV semiconductor company files for bankruptcy
Struggling EV semiconductor company files for bankruptcy originally appeared on TheStreet. It's safe to say it has been a wild, bumpy stretch for clean energy stocks. Sure, it was always a volatile space, but it's alarming to see them fall like a house of cards. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💵 Over the past few weeks, we've seen solar stocks drop like flies, and now one of the more promising EV tech stocks might be joining that bankruptcy list. The EV sector has been under duress for a while, and now a once-hyped chip stock in recent years is wrapping its brutal fall with a full-on bankruptcy move. Wolfspeed WOLF was one of the rising stars in the EV chip niche. It rode the hype train on silicon-carbide chips, which were touted as much quicker and more efficient than old-school silicon. EV makers and clean-energy players were all in, and investors bought the story. On paper, Wolfspeed's plan was mostly clear and compelling. Build huge U.S. fabs, maintain end-to-end control of the supply chain, and rake in big even branched into gallium-nitride (GaN) RF chips, targeting data centers and 5G towers, in spreading the risk. Layer onto that big money from private backers and CHIPS Act cash, and Wolfspeed was sure to be the next-gen backbone of clean-tech hardware. At first, Wolfspeed set its sights on Europe, particularly Germany, the auto capital. It looked to capitalize on Europe's EV scene and figured a Saarland fab would tap both EU and U.S. Chips Act cash. Up until mid-2024, Wolfspeed had massive plans for its $3 billion silicon carbide fab in Saarland, Germany. However, by June, chip demand cooled off fast, forcing the EV chipmaker to hit pause. That pushback spooked the market, casting serious doubts over Europe's subsidy game and whether Wolfspeed had overcommitted. By October, things got even worse. More EV Stock News: Tesla robotaxi launch hits major speed bump Struggling semiconductor company gets second chance to avoid bankruptcy Tesla's robotaxi rollout runs into trouble Auto-parts giant ZF bailed on their joint venture, which left Wolfspeed to shelve the Saarland project. It did score a $1.5 billion lifeline, though, 50% of which came from the CHIPS Act, and the rest coming from Apollo investors. Fast forward to early 2025, and it's utter chaos. The stock has lost almost the entirety of its value on a year-to-date basis, and its management admits that the cash runway is thinning. It all culminated in May 20's bombshell going-concern warning with $6.5 billion in debt, shattering its investors. Wolfspeed stock nosedived after announcing plans to file for bankruptcy as part of a restructuring deal with creditors. The transactions are set to reduce its debt load by 70% (a $4.6 billion reduction), lowering its annualized interest payments by 60%. It locked in a restructuring deal with creditors and Renesas' U.S. arm, securing $275 million in new financing. The goal is to crawl out of bankruptcy by Q3 this CEO Robert Feurle said, 'After evaluating potential options to strengthen our balance sheet and right-size our capital structure, we have decided to take this strategic step because we believe it will put Wolfspeed in the best position possible for the future.' Also, the company is sitting on $1.3 billion in cash, which it suggests should be enough to stave off any near-term liquidity troubles. Shockingly, Wolfspeed stock is down more than 30% in regular trading to just 63 cents. In the past month, it has lost 71% of its value, and over 30% in the past EV semiconductor company files for bankruptcy first appeared on TheStreet on Jun 23, 2025 This story was originally reported by TheStreet on Jun 23, 2025, where it first appeared.
