As US Treasury secretary Janet Yellen heads to Beijing in an attempt to steady economic ties, high on the agenda will be how to navigate the growing chip war between China and the US. Despite diplomatic overtures from both sides, the competition in advanced technology between the two superpowers shows no sign of letting up. On Monday, Beijing set a hostile tone for Yellen’s trip as it set export restrictions on two minerals that the US says are essential to the production of semiconductors and other advanced technology. Chinese state…
Tag: Computing
China’s war chest: how the fight for semiconductors reveals the outlines of a future conflict
Signs of the burgeoning conflict between the US and China can be spotted in many different places, from balloons in the sky to videos on TikTok. But nowhere is it more apparent than on the microscopic wafers of silicon, otherwise known as semiconductors. Semiconductors, or microchips, are tiny pieces of technology that power everything from microwaves to military weapons. The industry is worth more than $580bn (£466bn), but even that figure belies their importance to the global economy. Their existence powers several trillion dollars’ worth of goods and processes; without…
UK’s £1bn strategy for semiconductor industry lacks ambition, say critics
The UK government has announced an investment of up to £1bn in the domestic semiconductor industry, but has been criticised for declining to join the spending race that has seen the US and EU announce significantly bigger programmes. Labour accused the government of lacking ambition in its announcement, while one UK startup said the £1bn figure was less than the cost of one basic semiconductor plant. The UK’s long-awaited national semiconductor strategy would focus on the country’s existing strengths in the technology. Semiconductors, or microchips, are the “brains” of electronic…
The Guardian view on US-China chip wars: no winners in zero-sum battles | Editorial
Rishi Sunak is readying a billion pounds to subsidise the UK’s fledgling microchip industry. It sounds big. But the British government is merely reacting to US economic warfare against China. Behind the talk of “friendshoring” and resurgent industrial policy is a struggle to avoid collateral damage in the battle between China and the US for tech supremacy. The EU plans almost to match the US promise of $52bn (£42bn) in chip subsidies. India is spending $30bn (£25bn) on its semiconductor mission. Mr Sunak looks to be bringing a peashooter to…
Chinese ChatGPT rival from search engine firm Baidu fails to impress
The Chinese search engine company Baidu’s shares have fallen by as much as 10% after the company unveiled its ChatGPT-like AI software, with investors unimpressed by the bot’s display of linguistic and maths skills. The artificial intelligence-powered ChatGPT, created by the San Francisco company OpenAI, has caused a sensation for its ability to write essays, poems and programming code on demand within seconds, prompting widespread fears over cheating or of professions becoming obsolete. Chinese tech companies have joined the global rush to develop rival software, with Alibaba and JD.com also…
‘Political propaganda’: China clamps down on access to ChatGPT
Chinese regulators have reportedly clamped down on access to ChatGPT, as Chinese tech firms and universities push forward with developing domestic artificial intelligence bots. ChatGPT, the popular discussion bot created by US-based OpenAI, is not officially available in China, where the government operates a comprehensive firewall and strict internet censorship. But many had been accessing it via VPNs, and some third-party developers had produced programs that gave some access to the service. Those programs have disappeared from WeChat accounts. Multiple reports have said that major tech firms including WeChat’s parent…
Cold war 2.0 will be a race for semiconductors, not arms | John Naughton
Our digital civilisation, if you can call it that, runs on just two numbers – 0 and 1. The devices we call computers run on vast strings of ones and zeros. How? By having electrical currents that are either flowing or not. The tiny electronic switches that decide whether they’re on (1) or off (0) are called transistors. Once upon a time, these were tangible objects: I remember buying one with my pocket money in the 1950s for a radio receiver I was building. But rapidly they were reduced in…
Job cuts and falling shares: how did it all go so wrong for the US tech sector?
Amazon announced 18,000 job cuts, Apple’s share price fell below $2tn (£1.7tn) and there was more bad news from Tesla: it has been another tough week for big US tech firms. But this has not been a one-off. The ongoing drama at Twitter since its takeover by Elon Musk in October has taken place against a backdrop of global economic uncertainty, retrenchment from aggressive expansion plans and China’s disruptive transition from Covid lockdowns to rocketing case numbers as restrictions ease. In fact this week’s events have been a continuation of…
TechScape: What’s really behind Apple’s shift from China
This week, the first iPhone 14s rolled off Apple’s newest production line in Chennai, India. I understand why that doesn’t seem like huge news. The company has been assembling phones in India for some time, all of which serve the large domestic market. But it’s an important milestone, marking the first time Apple has produced a new iPhone outside of China in the same year it was released. It is also an important step in one of Apple’s most sensitive projects: to decouple its fortunes from those of Sino-American relations.…
Apple shifts some iPhone 14 production from China to India
Apple has begun making iPhone 14s in India, as it moves some production away from China for the first time against a backdrop of Chinese Covid-19 pandemic lockdowns and geopolitical tensions between the US and the country’s communist government. A production line in Chennai has begun operation, assembling the iPhone 14 for the domestic Indian market. The move, which marks the first time the company has assembled iPhones outside of China in the same year they were released, is part of a plan to disentangle its manufacturing operations from the…