Huawei moved into chip production last year and acquired at least two existing plants and is building at least three others. The Semiconductor Industry Association estimates there are at least 23 fabrication facilities in the works in the country with planned investments of more than $100 billion by 2030. By 2029 or 2030, China is on track to have more than half the industry’s global capacity in older-generation semiconductors. “China is roughly spending as much in subsidies as the rest of the world combined,” said Chris Miller, author of “Chip War.”
- Date Posted:
- August 24, 2023
When interest rates increase, holders of fixed income get a higher cash flow. The problem is that the Fed and foreigners own 50% of Treasuries outstanding, and foreigners own 28% of [investment grade and high-yield corporate] credit outstanding, so a lot of the additional cash flow created by higher US yields is not boosting US GDP growth. The bottom line is that higher interest rates are a net negative for the US economy.