The global “chip war” has become increasingly fierce.
Europe has made another big move in the chip field. On November 23 local time, EU member states agreed to invest more than 43 billion euros (about 320 billion yuan) to develop the chip industry, aiming to support the local chip supply chain and reduce dependence on American and Asian manufacturers. The pressure for the EU to accelerate chip subsidies may come from the United States. The Chip and Science Act launched by the EU has spent 52.7 billion dollars to subsidize companies investing in chip factories in the United States. Some analysts pointed out that the global chip giants have announced plans to launch chip factories in the United States, including many chip enterprises in Europe and Asia, which undoubtedly put pressure on the European government.
While the “chip war” is intensifying, an official statement from the Netherlands, a European chip power, has also attracted market attention. On November 24, Globegroup quoted Bloomberg as reporting that on November 22 local time, the Dutch Minister of Foreign Trade and Development Cooperation Schreiner said that in the trade negotiations with the United States and other countries, the Netherlands would make its own decision on ASML’s sale of chip equipment to China. If the Netherlands puts this issue into the “EU basket” to negotiate with the United States, the result will be to send the DUV to the Americans, “our situation will be worse”.
At present, Wall Street giants have begun to look forward to their investment in 2023. One of the important signals is that there are more and more people who are bullish on Chinese stocks. Recently, Michael Hartnett, the chief investment strategist of Bank of America, listed buying Chinese stocks as the “preferred transaction in 2023″ in a newly released report.
The EU spent 320 billion yuan
A “chip war” between the tip of a needle and Maimang is imminent.
On November 24, the Reference News Network quoted Reuters news agency as saying that on November 23 local time, EU member states agreed to invest more than 43 billion euros (about 320 billion yuan) to develop the chip industry, aiming to support the local chip supply chain and reduce dependence on American and Asian manufacturers.
The Czech Republic, the rotating presidency of the European Union, said that the special envoys of all countries unanimously agreed to the revised version of the European Commission’s proposal. The revised part includes allowing the government to provide subsidies to a wider range of chip enterprises, not just the most advanced chips. The subsidies will cover chips that bring innovation in computing power, energy efficiency, environmental benefits and artificial intelligence.
The purpose of the chip act is to ensure that the EU has the necessary tools, skills and technical capabilities to improve the advanced chip design, manufacturing, packaging and other fields, so as to ensure the stability of the EU’s semiconductor supply chain and reduce external dependence.
According to the agenda, EU ministers will hold a meeting on December 1 local time. It is expected that this chip subsidy plan will be approved, and will finally be adopted by the European Parliament in 2023, and will become a law.
In fact, earlier this year, the European Union began to draft the closely watched Chip Act, which plans to significantly increase the EU’s share of chip production in the world. Europe’s share in chip production has declined from 24% in 2000 to 8% today, while the Chip Act aims to increase this figure to 20% by 2030.
At that time, European Commission President Von Delain said that the Chip Act could change the EU’s global competitiveness. In the short term, it will enable the EU to predict and avoid supply chain disruption; In the medium term, it can help the EU become a leader in the chip market.
The pressure for the EU to accelerate the implementation of the Chip Act may come from the United States. In August this year, President Biden of the United States officially signed the Chip and Science Act, which includes providing 52.7 billion US dollars (about 376.8 billion yuan) for semiconductor research and development, manufacturing and labor force development in the United States; Provide 25% tax credit for companies investing in chip factories in the United States.
Some analysts pointed out that under the temptation of cash subsidies, global chip giants have announced plans to launch chip factories in the United States, including many chip enterprises in Europe and Asia, which undoubtedly put pressure on European governments and will further reduce Europe’s share in the global chip market.
In fact, the more acute contradiction between the EU and the United States comes from the provisions on subsidies for electric vehicles in the Inflation Reduction Act signed by Biden. On November 22 local time, French Finance Minister Le Maire said in Paris that France and Germany unanimously agreed that Europe needs to make a strong response to the plan of the United States government to support some American industries.
The Netherlands refused
While the “chip war” is intensifying, an official statement from the Netherlands, a European chip power, has attracted market attention.
On November 24, Globegroup quoted Bloomberg as reporting that on November 22 local time, Liesje Schreinemacher, Minister of Foreign Trade and Development Cooperation of the Netherlands, said that in the trade negotiations with the United States and other countries, the Netherlands would make its own decision on ASML’s sale of chip equipment to China.
Schreinemacher stressed that the most important thing is to defend their own interests – national security and economic interests. If the Netherlands put this issue into the “EU basket” to negotiate with the United States, the result is that they send the deep ultraviolet lithography (DUV) to the hands of the Americans, “our situation will be worse”.
Bloomberg reported that according to insiders, the Dutch government believes that if the measures required by the United States are implemented, the trade relationship between the Netherlands and China may be damaged.
In fact, this is not the first time Schreiner Maher spoke about the export of semiconductor equipment to China. She said on the 18th that the United States should not expect the Netherlands to adopt its export restrictions on China, and the Netherlands will not undoubtedly copy the United States’ (export to China) measures.
The background of this statement is that American officials have been pressuring the Dutch government recently to ban the sale of immersion lithography machines to China, which is the most advanced equipment in AS-ME DUV lithography machines. Among them, a delegation of senior U.S. officials, including Vice Minister of Commerce Alan Estevez, will go to the Netherlands this month to discuss relevant export control issues.
It is worth mentioning that Asme has a leading position in the market of cutting-edge chip manufacturing equipment, accounting for 60% of the global photolithography market. It is also the only company in the world that can supply EUV photolithography machines for chips below 7nm.
Asme’s DUV lithography machine can cover chips of 7-14 nanometers, and the company has 100% monopoly on the optical core machine equipment that can produce chips of less than 10 nanometers. Therefore, the Dutch attitude is undoubtedly quite important.
At present, in the trade with China, Asme only supplies DUV (deep ultraviolet lithography) with a relatively low level of technology. This equipment aims at the manufacturing of chips with a process technology of more than 7nm, covering most chips with mature processes in the current market. China is also one of the largest customers of Asme’s DUV lithography.
Foreign giants suddenly sing more
The investment clock in 2022 is about to enter the last month, and Wall Street giants have begun to analyze and prospect the annual investment strategy in 2023. One of the important signals is that there are more and more people who are bullish on Chinese stocks.
Recently, Michael Hartnett, the chief investment strategist of Bank of America, listed Chinese stocks as the “preferred transaction in 2023″ in a newly released report. As residents have excess savings, China’s economic recovery will boost the stock market.
At the same time, Michael Hartnett listed “selling American technology stocks” as one of the “top ten preferred transactions in 2023″ in the report. Even though the NASDAQ 100 index fell 28% this year, technology stocks are still over held.
Among them, before Bank of America, other investment banking giants on Wall Street also issued a bullish view on Chinese stocks.
Jonathan Garner, chief Asia and emerging market equity strategist of Morgan Stanley, said that with the continuous positive news, the Chinese market will perform better, and the bull market may last for several quarters.
In the report released last Friday, Goldman Sachs maintained the overweight rating of the MSCI China Index, and predicted that the MSCI China Index and the Shanghai Shenzhen 300 Index would return as much as 16% in the next 12 months. If the exchange rate factor is included, the return would be as high as 19% and 21%. Goldman Sachs also raised the stock of Hong Kong from “low allocation” to “balanced allocation”.
In addition, strategists such as Robert Buckland of Citigroup raised the rating of Hong Kong shares to “over allocation”. It is expected that the adjustment of real estate policies will improve the profitability of listed companies. The current domestic policies will help support investor sentiment. Even if other major economies are slowing sharply, China may rely on internal drivers to achieve an attractive recovery.
Recently, Rui Dalio, founder of Bridgewater Fund, also said that some valuable assets can be found in the Chinese market.
At the same time as Wall Street’s attitude suddenly changed, China’s stock market is starting a round of rebound. The MSCI China Index has rebounded about 19% in November, and the Hang Seng Index has entered a “technical bull market”.
With a strong rebound in Hong Kong stocks, foreign giants began to enter the market.
Post time: Nov-25-2022