China to invest $150 billion to boost chip manufacturing

According to one report, China will invest 150 billion dollars to boost chip manufacturing in the coming years. The government decided to make a strong investment in the industry to alleviate the global component crisis.

The shortage of chips, which has taken on a worrying dimension with the COVID-19 pandemic and now with the war between Russia and Ukraine, is nothing new. In fact, this crisis has affected various sectors and has delayed the production of vehicles, devices and others that depend on these components.

For this reason, countries like the United States of America are already investing considerable amounts of money to appease the problem. This time, the announcement came from China, which says it will spend more than $150 billion through 2030 to boost production of semiconductors.

The largest chipmaker seeks to end the crisis

China is the largest manufacturer of chips and is responsible for the production of 36% of the world’s electronic devices. In addition, it is the second largest consumer market for electronic devices containing semiconductors, after the United States.

Despite China’s important role in the production of electronic products, the production of chips is not enough to meet the country’s needs. However, with this investment planned by the government, the 7.6% it has of total world chip sales will increase.

A few days ago, Intel revealed that it wants to invest €80 billion in chip manufacturing in Europe over the next decade. This investment is intended to mitigate the imbalances in the global semiconductor industry, causing the crisis that has been affecting us all.

And without a doubt, this will benefit us all remarkably. We were already talking about the prices of GPUs They are going down continuously, now, it will be time to see if with all the measures that the component manufacturers have been taking, things will calm down.

What do you think about this news that China will accelerate the production of semiconductors? Could this be the answer that ends the crisis?

Source: CNBC