Keith Krach Talks Domestic Investments in Chip Manufacturing on Bloomberg Daybreak
As President Biden and Micron President Sanjay Mehrota on the newly signed chips legislation. And we want to get more on that bill now, which includes about $52 billion to boost domestic semiconductor research and development. Keith Krach is chairman of the Krach Institute for Tech Diplomacy at Perdue. He previously served as the U.S. Under Secretary of State. $52 billion is is a fair amount of money. Chipmakers right now are doing quite well with profits.
Secretary Xi in China is absolutely obsessed with the semiconductor business. He appointed the semiconductor czar with $1,000,000,000,000 budget over the next ten years. And as far as they can, you know, overcapacity. I don’t think we have to worry about that for a long, long time. Now, the skill set, that point is a very important point because if you take, for example, TSMC is $12 billion semiconductor plant. There’s 1500 workers in that plant. 60% of them are PhDs or masters degree. And that’s one of the reasons, for example, my alma mater, Purdue University, just came out with the first program to get a masters in semiconductor engineering. So this is a really important skill set. But, you know, we we’ve got to bring back it’s also great in terms of the R&D that’s in this bill. That’s about $200 billion worth. And this is something where we get economies of scale with our allies, beat and defend techno authoritarianism.
Studies have shown that the majority of the U.S. university endowment fund portfolios own PRC stocks listed on American exchanges either directly or indirectly through emerging markets index funds.
Citizens around the world are waking up to the truth about the CCP’s three-prong strategy of concealment, co-option, and coercion. The CCP’s concealment of the virus resulted in the pandemic, its co-option of Hong Kong has eviscerated the freedoms of its citizens, and its relentless coercion of the Uyghur people has continued in the brutal internment camps of Xinjiang.