'Responsive' US House of Representatives co-branded, calling for the cancellation of the addition of semiconductor tariffs

1. The US House of Representatives co-branded, calling for the cancellation of the addition of semiconductor tariffs; 2. Intel Interim CEO: Intel's commitment to the Chinese market is unwavering; 3. AMD blockchain technology director: APU processor for mining is coming out soon; 4. Market anxiety increased competition, product delay Intel shares fell 8.6%

1. The US House of Representatives jointly signed a letter calling for the cancellation of the addition of semiconductor tariffs;

Original title: Killing a hundred, self-damaged one thousand'? US House of Representatives co-branded, calling for the cancellation of the addition of semiconductor tariffs

Abstract: Most of the semiconductor products imported from China are designed and manufactured by American semiconductor companies. They are only low-value processes such as assembly, testing and packaging in China. This part of the output value only accounts for about 10% of the final product value. The US semiconductor equipment and materials industry exports $24 billion worth of products annually to the world, including about $2 billion in exports to China. In fact, the United States is the world leader in semiconductor manufacturing equipment and materials production, accounting for the global 40% of the market share, while US companies produce more than 80% of the products in the country. Therefore, the addition of tariffs will not affect Chinese companies, but will damage the interests and innovation of American companies.

Set micro-network news (text / Aki), June 2018, the US Trade Representative Office (USTR) announced that it will impose a 25% increase on about 34 billion US dollars of Chinese imports including semiconductor products.

On July 27, local time, the US House of Representatives leaders called on the Trump administration to remove semiconductors and related products from the list of tariffs imposed on China, to prevent such products from being imposed by up to 25% in the next few days or weeks. .

A panel of 49 congressmen submitted a letter of appeal to US Trade Representative Robert E. Lighthizer, trying to convince the Trump administration to impose tariffs on semiconductors that would not be able to combat China's trade or achieve the government's goals. This move is more likely to hurt American businesses and consumers.

The US industry group Semiconductor Industry Association (SIA) also supports this view and is urging the government not to impose tariffs on semiconductors and related products.

Members of Congress wrote in the letter: 'We understand very well that the US Trade Representative Office’s 25% tariff increase is aimed at China’s policy changes, and it also strongly agrees with this goal. However, we have not seen the import of semiconductors and related Adding tariffs on products will help this goal. Adding tariffs will not affect Chinese companies because they have almost no semiconductor products exported to the US market. Instead, they will harm the interests and innovation of American companies.

The letter also emphasizes that most of the semiconductor products imported from China are designed and manufactured by American semiconductor companies. They are only low-value processes such as assembly, testing and packaging in China, which only account for 10% of the final product value. Therefore, members of Congress believe that the addition of tariffs is not a very reasonable measure, nor will it exert too much pressure on the Chinese government.

'China is implementing a national subsidy program of up to 150 billion US dollars (collective micro-network: big fund), to achieve continuous theft of patents, compulsory technology transfer, national mergers and acquisitions and the application of anti-monopoly system, and ultimately achieve the purpose of protectionism, So to establish their own domestic chip industry. We agree that it is necessary to solve these problems, but this does not mean that the addition of tariffs can change these practices in China, because this measure has almost no impact on China's domestic chip industry.

Some members signed

In addition, the letter also emphasizes the importance of the semiconductor industry to the US economy, pointing out that the semiconductor industry employs 250,000 US employees and provides nearly one million jobs in the United States. Semiconductor companies in the United States account for about half of the global semiconductor market and Manufacturing in nearly 19 states in the United States, which helps the semiconductor industry become the fourth largest export category in the United States.

It is understood that the semiconductor equipment and materials division of US companies provides the world's semiconductor manufacturers with the necessary tools and materials to export $24 billion worth of products annually to the world, of which exports to China are approximately $2 billion. In fact The United States is a global leader in the manufacture of semiconductor manufacturing equipment and materials, accounting for 40% of the global market share, while US companies produce more than 80% of their products in the country.

On the other hand, China is the world's largest and fastest growing semiconductor and equipment consumer market. Data show that in 2017, China's market consumption of chips accounted for about 32% of the world's total, in 2018 equipment procurement costs accounted for 17% of the world, 2019 It will grow to 25%, which is a rapid growth. The letter pointed out that the United States should help enterprises expand their markets and protect the intellectual property rights of US companies under the conditions of policy fairness, instead of impairing the US semiconductor industry through tariffs.

For the issue of tariffs, the US industry group Semiconductor Industry Association also expressed similar concerns, stressing that it is wrong to impose tariffs on semiconductors and related products. SIA estimates that the US imports from China in 2017 are 2.5 billion US dollars. After the implementation of tariff sanctions, it is very likely that the $2.5 billion of production capacity will be transferred to the United States. The implication is that US semiconductor companies are clearly not willing to undertake the 'low-value manufacturing industry'. Product cost and labor costs rise.

SIA has previously submitted a document hoping that the Trump administration will remove 39 product categories from a series of Chinese imports worth about $16 billion. In the document, SIA said that because of the majority of semiconductor products imported from China by the United States, They are all designed or manufactured in the United States and shipped to China for testing and packaging. Therefore, the statistics on semiconductor imports from China are misleading.

Earlier, according to the Wall Street Journal, the Office of the US Trade Representative Office (USTR) launched a two-day public hearing on July 24th on the '25 billion US dollars on Chinese imports subject to tariffs.'

The SIA said it testified at the hearing that the proposed tariff would affect US semiconductor chips imported from China by about $3.6 billion and an additional $2.7 billion. That is, the SIA recommends deducting $6.3 billion from the $16 billion sanctions list. The amount of semiconductor imports designed and manufactured in the United States.

SIA expressed concern about the hearing: 'Tarms will weaken US technology leadership, leading to job losses and adversely affecting US semiconductor product consumers and US semiconductor manufacturers. ' Meanwhile, National Retail Federation (National) Retail Federation, NRF) and 65 business groups warned USTR on the 24th that tariffs on Chinese imports would not produce the results that the government would like to see.

In addition, SEMI has submitted written comments and provided evidence of the devastating effects of tariffs on the US semiconductor industry. Although SEMI strongly supports efforts to better protect valuable intellectual property, these tariffs do not help resolve US versus China. Concerns about trade practices. Instead, tariffs can damage companies in the semiconductor supply chain by increasing business costs, introducing uncertainty and stifling innovation.

The original letter is as follows:

Congress of the United Stateswashington, dc 20515July27, 2018

The Honorable Robert E LighthizerUnited States Trade RepresentativeOffice of the United States Trade Representative600 17t Street NWWashington, D. C 20508

Dear Ambassador Lighthizer:

We write to you to highlight the importance of the semiconductor industry to the u.s. economy, and to express our concerns with the proposal to impose tariffs of 25 percent on $6.3 billion in u.s. imports of semiconductor devices, semiconductor manufacturing equipment, and related products from China. Doing so will not only fail to encourage China to address forced tech transfer and IP theft, it will adversely impact the semiconductor industry value chain in the United States. We urge you to remove all semiconductor products and semiconductor manufacturing equipment from the final tariff action and, importantly, devise more effective solutions to address China' s discriminatory and unfair trade practices in the semiconductor industry.

We share the Administration' s goal of maintaining a strong and growing semiconductor industry in the United States. Semiconductors are America' s fourth largest export, with a healthy trade surplus in devices of over 6 billion dollars in 2017, including a surplus with China. The industry directly employs approximately 250,000 workers in the U. S, with manufacturing operations in 19 states, and American semiconductor companies command approximately half of the global market.

The semiconductor equipment and materials sector, which provides the necessary tools and specialty materials to semiconductor manufacturers, exported more $24 billion worth of goods globally, and nearly $2 billion directly to China. In fact, the United States is the global leader in producing semiconductor manufacturing equipment and materials, holding about 40 percent of the global market share, with u.s. companies exporting more than 80 percent of what is produced domestically.

We understand that USTR's goal with the proposed tariff action is to bring about policy change in China, and we agree with this goal. However, we fail to see how tariffs on imported semiconductor and semiconductor equipment can achieve that goal. Tariffs on semiconductors will not impact Chinese companies since they export almost no semiconductors to the u.s. market. Instead, these tariffs would harm U. S. companies and innovators. Most u.s. imports of semiconductors from China are designed and manufactured by U. S firms, largely in the United States, and then shipped to China for final assembly, test and packaging. This step in the semiconductor manufacturing process comprises approximately 10 percent of the value of the final product and does not result in the transfer of valuable IP. Similarly, imports of finished semiconductor tools are essentially non-existent. Rather, imports of relatively low-value/low-p components are incorporated into high value-added tools made by U. S. equipment makers and sold around the world.

In addition to misdirecting penalties at the u.s. semiconductor value chain, the proposed tariffs fail to provide the U. S with meaningful leverage to press China to change its behavior. As out lined in your Section 301 report, China is engaged in a colossal $150 billion state subsidy program, ongoing and persistent IP theft, forced technology transfer, state-backed M&A, and application of its anti-monopoly regime for protectionist purposes to build out its domestic chip sector. We agree that it is essential to address these policies but fail to see how tariffs on American chip firms will change these Chinese practices as they will not have any meaningful impact on China' s domestic chip Industry.

We call on the Administration to explore more effective and targeted policies, such as penalties for state-actors engaging in IP theft, WTO cases, and strengthened multilateral action with our allies to address the transfer of sensitive technology.

Semiconductors and their supporting supply chain are the bedrock of the digital and information economy and a key component of America' s technology leadership. Our response to the discriminatory practices found in USTR' s 301 report should be targeted, effective, and avoid jeopardizing America' s leadership in this important technology. China is the world' s largest and fastest growing market for semiconductors and equipment, totaling nearly 32 percent of the global market in 2017 for chips, and for equipment, 17 percent in 2018, and growing to 25 percent in2019. u.s. policies in this area must be properly focused on expanding access to global markets on fair terms and protecting our IP, while also avoiding harm to our own industry.

We look forward to working with you to remove semiconductors, semiconductor manufacturing equipment, and related products from the 301 tariff action, and to develop tough and effective remedies that are properly tailored to achieve our shared goals.

Sincerely,

2.英特尔临时CEO: 英特尔对中国市场的承诺不动摇;

According to the micro-network news, due to the tension between the Sino-US trade war, Intel’s interim CEO Bob Swan said: 'China is still an important market for Intel.'

'We have a very good partnership in China.' Bob Swan, who also serves as executive vice president and chief financial officer, stressed, 'We are committed to developing the Chinese market. No matter how the future Sino-US trade war changes, Intel's customers in China and China. The promise will not be shaken. '

It is worth noting that the background of Bob Swan's statement is that the Trump administration has negotiated with Europe, Mexico and Canada and made progress. However, negotiations with China still have no results.

Bob Swan said, 'Intel has been in China for 30 years and has more and more customers. It can be said that China is a very important market for Intel.'

However, some investors are also worried that the upcoming tariff increase will weaken the booming semiconductor business. However, Bob Swan stressed that Intel has always been highly concerned about this matter, however, Intel is affected by the tariff imposed by the semiconductor industry. Relatively small.

'In the world, this measure has no effect on Intel.' Bob Swan said, 'We are currently evaluating the third batch of tariff lists. From the current development point of view, the third batch of tariff lists will not be for us. The business has a major impact. '

3. AMD blockchain technical director: APU processor for mining is coming out soon;

The hot money of digital currency ignited the graphics card market from 2017 to the beginning of 2018. The mining card was hot at the first time, and the performance of AMD, NVIDIA and graphics card manufacturers soared. Some of the graphics card manufacturers' performance in January this year soared 10 times. After Q2 quarter The good days are gone, the mining card market is down, and the graphics card manufacturers are worrying about the inventory.

However, AMD, NVIDIA will not miss the market opportunity of digital currency, blockchain, AMD blockchain technology director Joerg Roskowetz on the premise that AMD is studying mining with APU processor, this product will soon be available.

Regardless of domestic or foreign companies, decent large companies will not directly participate in digital currency operations, and will not directly issue coins. After all, it is too suspicion to cut leeks, but almost all technology companies are investing in blockchains. I think the blockchain technology is very promising. Ma Yun is promoting the blockchain to change the world.

Because blockchain and GPU are closely related, AMD also pays attention to blockchain technology. AMD blockchain technology director Joerg Roskowetz recently interviewed PCwatch in Japan and talked about some of AMD's ideas in blockchain and digital currency. Trends, which mentioned some GPU and ASIC mining machine chips, AMD PSP security technology and APU mining content.

For ASIC chips, it has the advantage of being specific and energy efficient, but the advantage of GPU is that it is more flexible. Joerg Roskowetz said that GPU can be used not only for mining, but also for graphics rendering, and can also run deep learning. .

As for PSP security technology, AMD actually integrates ARM's TrustZone security kernel into the processor. It is not designed for blockchain technology, mainly for enterprise security, but in digital currency, PSP technology is also apparent. Can play its security advantage.

The most attractive is Joerg Roskowetz mentioned the possibility of APU mining, limited to the bandwidth of DDR4 memory, now using APU mining is no advantage compared to the use of GDDR5 memory or even HBM 2 memory card, but he said AMD is studying Put some of the calculations on the APU processor (CPU side), and the products that achieve this goal will appear in the near future.

4. Market anxiety increased competition, product delay Intel shares fell 8.6%

Sina Technology News Beijing time on July 28 morning news, due to fear of increased competition and product delays, Intel shares fell 8.6% on Friday.

At the opening, its share price was $48.76 per share, and then fell to an intraday low of $47.48 per share. At the close, Intel shares rebounded slightly to close at $47.68 per share.

Although Intel’s report on Thursday showed strong revenue and profit performance in the second quarter, some analysts are still worried about competition from AMD, etc. The next generation of chips is delayed for several months. Adding to the snow.

Conversely, its second-quarter earnings report from rival AMD showed that the company's revenue and profit performance were strong, which impressed Wall Street investors. AMD's share price soared 14% on Thursday.

'This setup may allow AMD to control the architecture and process nodes of the x86 processor market in the next few years. This will be a change we have never seen before, and it will cause structural damage to Intel's business model. 'We reiterate our Sell ​​rating,' Rosenblatt Securities wrote in a report on Friday. Analysts pointed out that 'Intel may lose its monopoly in the CPU industry.'

At the same time, Intel has been working hard to produce next-generation chips in accordance with the established timetable. In its earnings report, Intel revealed that the company's 10-nanometer chip production process will be put into use in the second half of next year, which means it The next generation of products will be available in the holiday season of 2019. Over the years, Intel has been developing 10nm chips on a large scale. They promise that the new generation of chips will be compared to the chips manufactured using the company's 14nm technology since 2014. More powerful and lower power consumption.

But the delay in the chip caused Bank of America Merrill Lynch to downgrade Intel's stock rating from 'buy' to 'neutral' this Friday, and said the product delay is Intel's 'maximum risk'.

When Intel was struggling with 10 nanometer chip production, AMD said earlier in July that it would begin production of the next generation of 7 nanometer chips by the end of 2018.

'Intel's biggest risk is that its next-generation 10nm product shipments are delayed by one year, while its rival Taiwan Semiconductor quickly catches up and may support AMD, Nvidia and Xilinx achieve leapfrogging. Development. ' The Bank of America analyst wrote.

Analysts at Stifel responded to Bank of America concerns about 10 nanometer chips and added that increasing the cost of production could reduce gross margins.

'We don't believe that gross margin will expand year by year,' Stifel wrote in a report on Friday.

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