How disastrous will things be for Intel and AMD in the Chinese market when China's Loongson chips catch up? Will they lodge a complaint to US congress about China not buying their stuff anymore?
Take Huawei and NVDIA
NVDIA produces the world's best quality chips. Unfortunately China is the only Non European or Japanese or American market that can effectively buy these Chips and leapfrog themselves and also the evolution of these Chips to the next generation at a much faster rate
Now that NVDIA doesn't sell its top chips to China and sells a watered down version, the Chinese are looking towards local suppliers and manufacturers because the Quality edge is no longer as significant as it was when NVDIA was selling its best Chips
Huawei and Tencent slowly fill the space with their Chips that are certainly 95% or even on par with NVDIAs watered down version but almost 35% lower in cost
As more and more Chips of Huawei and Tencent sell, it's likely both entities will evolve their Chip designs and manufacturing at a much faster rate than NVDIA can because NVDIA doesn't have access to one of the world's top markets anymore for it's best Chips
NVDIA instead gets a handout from the Federal Government of $ 3.5 Billion a year as part of the CHIPS act plus a subsidy of $ 2 Billion a year to make up for it's potential Chinese losses
So NVDIA doesn't even need an alternate market for it's best Chips
It's Subsidy plus it's G7 Markets are enough
However the EVOLUTION is going to be slowed down
Chinese Chips will evolve faster because they have access to the world's fastest growing market
This isn't new
Protectionism over Economics has always been an unmitigated disaster
We Indians had some of the finest toolmaking industries in the world in the 1950s
We had excellent steel working factories
We made good quality machines
Then in 1977, we introduced PROTECTIONISM and cut out imports.
Without COMPETITION, our entire production quality crashed and crashed and crashed some more
By 2010, our Steel, our Tools, our Machines were three levels more inferior to global standards
It's why China encourages CUT THROAT COMPETITION and doesn't reciprocate by banning Apple from it's markets or other brands
Competition and Free Market Access is the only way to make Technology grow
Sadly the Dumbo leaders in the West can't see this Problem because they are ELECTED and so automatically chosen for factors other than BRAINS and ABILITY
They know neither Economics nor Science (And apparently No Geography either)
Ultimately Chinese Chips will replace Western Chips and have the same or better quality
It's Economics and that hasn't changed for millennia
Once it's likely Sumerians were awed at the Astonishing weaponry of the Old Egyptians and their technology
Likewise once the Americans were awed at the British Technology like Radars and Spinning Jennys
-Kanthaswamy Balasubramaniam
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