- Jun 2022
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curator.diplomacy.edu curator.diplomacy.edu
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Title: Amr, UK microchips design company, becomes a key actor in digital geopolitics.
Arm, UK\s microchips design factory, symbolises a shift in the semiconductor industry. Arm focuses on design chips which are becoming increasingly complicated. Amr's design is trend into chips by manufacturers worldwide, ending in mobile phones, drons and other devices. For example, Amr's design is behind 99% of smartphone chips.
ARM tries to keep its unique position by remaining neutral actor in semi-conductor industry. By refusing recent buy-out offer by Nvida, Amr keeps its neutral positioin by remaining, asA Amr's boss Simon Segars put it 'Switzerland of the tech industry'.
Another challenge for Amr will be risc-v chip architecture that lacks royalities and licence fees, the core of companies business model.
Amr''s role wll play an important role in emerging geopolitics of microchps. Companies importance is so high that some UK politicans propsoed government to take controlling 'goden share' of Amr.
Source: The Economist
Twitter: AMR, a UK high-tech company is a key player in chips geopolitics. It focuses on the design and maintains its neutrality among large semiconductor manufacturers.
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It is nevertheless limited in how much it can charge for its products by the emergence of a new challenger: risc-v. This is a novel chip architecture that lacks royalties and licence fees.
to be checked about this shift in micro-processor industry
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Removing the need to design a chip—a complicated, highly specialised job—has made Arm’s off-the-shelf designs popular, especially as chips have become more and more complicated. New Street Research, a firm of technology analysts, reckons Arm has a 99% share of the $25bn market for smartphone chips. Its products are widely used in everything from drones and washing machines to smart watches and cars. Arm says it has sold just under 2,000 licences since its founding (see chart). More than 225bn chips based on its designs have been shipped. It hopes to hit 1trn by 2035.
Here is how this business model functions
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Unlike firms such as Intel, which sells chips that it both designs and manufactures, Arm trades only in intellectual property (ip).
It is useful to explain different business models around microchips industry.
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Look at Arm’s finances and the interest seems puzzling. Its sales rose by 35% last year to $2.7bn—not bad, but peanuts next to the giants of chip design. Its valuation, as implied by the Nvidia deal, has risen by a quarter in six years. In the same period Qualcomm’s market capitalisation is up by half and Nvidia’s has risen 13-fold, recent market carnage notwithstanding.
Rise of share of microchips producers. Good visualisaiton.
Nice for visualisation at our microchips page.
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- Apr 2022
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curator.diplomacy.edu curator.diplomacy.edu
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China’s biggest source of leverage is its own vast market. America might, for example, wish to deprive it of certain high-tech inputs, such as semiconductors. But a complete ban would cost American semiconductor firms 37% of their revenues, according to Boston Consulting Group, and jeopardise over 120,000 jobs.
Interply between China and USA on microchips.
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www.mckinsey.com www.mckinsey.com
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||VladaR|| Ovo je primer tekta short and sweet. Nema nista posebno, ali je sve skockano, lako se cita, itd.
Prosledi Ana-Mariji
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- Feb 2022
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curator.diplomacy.edu curator.diplomacy.edu
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The analysis is triggered by the EU's new Chips Act that we shoudl analyse. In brief the article autliens strenghts of EU in microchips supply chain such as Dutch company ASML.
Europe will invest heavily in mega fabs (spaces for production of microchips). It will also try to bring to Europe TSMC, Intel and other manufacturers. It remains to be seen how it will work.
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curator.diplomacy.edu curator.diplomacy.edu
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Current list of the market share for semi-conductors USA (50%) EU Japan China (9%) Taiwan
Article covers India's plans to become more important player in semi-conductor industry.
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In 2015, China had a meager share of 3.8 percent of the global chip sales, amounting to $13 billion, but by 2020 China had improved its score, marking an annual growth rate of 30.6 percent, capturing a 9 percent market share and about $40 billion in annual sales.
Fast growth of China's semi-conductor industry.
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- Jan 2022
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curator.diplomacy.edu curator.diplomacy.edu
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Does the USA policy towards China on microchips suply chains work? Most likely not, according to the Economist latest coverage.
But 'chip diplomacy' is taking top of many diplomatic meetings worldwide as the US tries to keep focus on this important strategic issue.
Biden administration has been shifting from Trump's approach of banning export microchips to Chinese companies such as Huawei towards more multilateral solutions that will 'secure supply chains' as it is terminologically framed.
The USA, according to the Economist, faces the following dilema:
America is caught between choosing a softer set of controls which may work better in the long run, or a harsher set that could hurt Chinese technology more in the short run but might harm American industry overall.
In search for opitmal approach for the US interest, it has to take into consideraiton the following elements:
- unilateral control does not work since there are ways to bypass export bans. In short run, some companies may be hurt as it was the case with Huawei, but in medium and long term it will fail.
- Asian and European countries are not willing to go with harsh sanctions towards China. They also prefer multilateral solution why USA prefers fast solution among group of 'like-minded countries'.
In the search for a compromise solution, they are experimenting with the development of, what the Economist, calls 'The Organisation of the Semiconductor Exporting Countries' (analogous to OPEC for Petroleum). But, more immediate solution are searched, including the cooperation in the context of the EU-US Trade and Technology Council, QUAD cooperation, etc.
You can access the Economist article here.
The GIP Digital Watch will follow these developments closely.
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America is caught between choosing a softer set of controls which may work better in the long run, or a harsher set that could hurt Chinese technology more in the short run but might harm American industry overall.
Key dilemma
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Last year Huawei’s revenues shrank for the first time in a decade, by almost a third.
It is direct impact of sanctions and banning of Huawei.
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derisc-project.eu derisc-project.eu
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Space and aviation technology requires high level of fault-tolerance. It is interesting that European space/aviation industry is shifting towards RISC-V open source approach. This text summarises De-RISC project on this topic.
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- Dec 2021
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www.linkedin.com www.linkedin.com
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the mining of silicon,
It would be interesting to see how silicon is produced (main producers)
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This “Chips Act” includes three aspects: a clear European research strategy, the develop-ment of production capacities, and interna-tional partnerships and cooperation.
EU strategy on microchips produciton
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Chip Manufacturing Process
||VladaR|| kratko i dobro objasnjenje sta su microchps
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three simultane-ous developments: the COVID-19 pan-demic, geopolitical tensions, and climate change.
three reasons for shortage in microchips
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- Oct 2021
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www.diplomacy.edu www.diplomacy.edu
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This will make him a key figure in giving some substance to the much promised supply chain cooperation between Australia, Japan and India and the broader focus in the “Quad” group with the US on issues such as critical minerals and cybersecurity.
Japan will be more prominent actor in Quad gorup.
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