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Biden will need more than $52B to counter China in chips

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President Joe Biden’s blueprint for the U.S. semiconductor industry marks an ambitious effort to set industrial policy for a critical sector of the economy, but the strategy will need more money and global support to take back chip supremacy and preempt a rival effort from China.

The White House on Tuesday outlined a sweeping plan to secure the conduits for critical products from medicines to chips, responding in part to the growing economic and political sway of its Asian rival. Semiconductors — the basic yet incredibly sophisticated components in most every modern device — took centerstage in a 250-page White House report, which highlighted Beijing’s “ultimate goal of cyber sovereignty and establishing first-mover advantage.”

The U.S. Senate expressed bipartisan support by passing a bill offering $52 billion to bolster domestic chip manufacturing the same day. That’s aimed at reassuring industry leaders like Intel Corp., Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. as they consider expanding investments in production capacity in the country. It’s a hefty pledge, but the money will go fast in an era where a single advanced wafer fab runs more than $10 billion.

China has made technology advances a major plank of its 14th five-year plan, with President Xi Jinping pledging $1.4 trillion over six years to secure a lead in sectors like chips, artificial intelligence and autonomous driving. South Korean companies like Samsung and SK Hynix Inc. are committing $450 billion over a decade on chip research and expansion, while TSMC alone has earmarked $100 billion over the next three years.

The U.S. Senate passed a bill offering $52 billion to bolster domestic chip manufacturing. Photo by Bloomberg Mercury

“$50 billion is a great start but this is an expensive industry with heavy levels of subsidies being proposed across multiple geographies,” said Anne Hoecker, a partner at Bain Capital. The investment “provides more assurance for semi manufacturers to make large, multi-year investments.”

Biden is demonstrating a willingness to break with the laissez-faire traditions of the U.S., calculating the semiconductor industry merits a different approach given the deep government involvement in other countries. He has powerful allies in his corner, in nations that command leads in different sectors of the giant global chipmaking apparatus.

Inside a global foundries semiconductor manufacturing facility

Among the goals outlined in Tuesday’s report is an effort to entice more private investment from abroad and leverage U.S. diplomatic muscle. TSMC and Samsung are currently in talks to secure vital incentives to build advanced chip plants in the U.S., which would instantly elevate both U.S. semiconductor know-how and capacity.

The White House also called for effective multilateral export controls that would “protect U.S. national security interests by limiting advanced semiconductor capabilities in countries of concern.”

The Netherlands is home to ASML Holding NV, which enjoys a virtual monopoly over the market for advanced extreme ultraviolet lithography equipment — essential in making the most advanced 5-nanometer chips and beyond. It’s been unable to ship any EUV systems to China as the Dutch government hasn’t renewed its export licenses for Chinese customers. Meanwhile, Japan’s Tokyo Electron Ltd. and Nikon Corp. supply sophisticated gear to first-tier chipmakers such as Intel and also Chinese companies.

Biden’s plan is in part a reflection of a growing concern globally. The world’s heavy dependence on a handful of crucial Asian-based chip suppliers like TSMC was exposed this year after a global supply crisis idled factories at several U.S. automakers, threatening to cut $110 billion in sales.

China’s rising threat is the other long-term danger. The country remains at least several generations behind Taiwan and the U.S. in chip design sophistication. But China’s track record of being the world’s factory floor and vast reams of data could give it a leg up in certain pivotal segments, such as the labor-intensive but vital work of assembling and packaging semiconductors, or the younger field of AI-enabled chips.

In a sign of the urgency of that effort, the nation’s top semiconductor executives and senior policy makers converged on Nanjing this week for the three-day World Semiconductor Conference to brainstorm future approaches and cement alliances.

Advanced chip packaging offers China a chance to push performance by combining a number of chips in one package, but it’s ultimately not a replacement for fundamental semiconductor development, Bain’s Hoecker said.

“China has been chasing the rest of the world over the past decade. But as the performance of chips increases significantly slower today than in previous years, it’s for sure that China will be able to close the gap with the leaders,” said Wu Hanming, a member of the Chinese Academy of Engineering, a state-backed research institute that houses elite scientists.

In the short term, Biden’s blueprint promises a shot in the arm. A $50 billion federal program to incentivize domestic semiconductor manufacturing would add $24.6 billion annually to the U.S. economy, the Semiconductor Industry Association and Oxford Economics estimate. It would generate 280,000 permanent jobs, of which 42,000 would be employed in the semiconductor industry directly.

“The U.S. semiconductor goal is simpler than China’s. It only needs to reshore chip manufacturing, and is already well on the path to doing so,” said Dan Wang, technology analyst at Gavekal Dragonomics. “China’s challenge is to master not only the manufacturing of chips, but also invent the equipment — which are some of the most complex instruments in the world — to produce them.”

White House report recommendation Key provisions
1. Promote investment, transparency and collaboration, in partnership with industry, to address the current shortage Commercial diplomacy to promote investments by foreign firms in the domestic semiconductor industry and ensure fair allocation of supplies to American firms.
2. Fully fund the CHIPS for America provisions to promote long-term U.S. leadership At least $50 billion in funding for domestic production incentives to secure mature node supply chains for critical industries. Additional appropriations may also support Department of Defense R&D.
3. Strengthen the domestic semiconductor manufacturing ecosystem Calls on Congress to fund incentives to support essential chip manufacturing supply industries, including fabrication equipment, materials and gases. Investment in radiation-hardened microelectronics data collection, storage and analytics.
4. Support SMEs and disadvantaged firms along the supply chain to enhance innovation Small Business Administration to promote U.S. small semiconductor firms and connect them to commercial value chain via a clearly mapped “growth chain.”
5. Build a talent pipeline Department of Labor funds to be used to support pathways to semiconductor employment through apprenticeships. More high-skilled visas, eliminating visa limits by country and exemptions for highly-skilled STEM talent.
6. Work with allies and partners to build resilience Pursue international research and development partnerships and policy harmonization to address unfair trade practices. Bilateral engagement with South Korea on mutual and complementary semiconductor investment.
7. Protect the U.S. technological advantage Targeted export controls to address semiconductor supply chain vulnerabilities. Collaboration with key supplier allies on multilateral controls to guard U.S. national security. CFIUS reviews of semiconductor-related foreign investments.

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Source: https://bankautomationnews.com/allposts/infrastructure/biden-will-need-more-than-52b-to-counter-china-in-chips/

Fintech

FinovateAsia: Digital Disruption, Embedded Finance, and the Customer Experience

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If you are looking to get up to speed on the innovations in fintech taking place in the Asia-Pacific region, then our all-digital fintech conference, FinovateAsia, is your ticket. For two days next week, June 22 and June 23, our guest speakers and distinguished panelists will share their insights and experiences as innovators, entrepreneurs, and analysts in one of the fastest-growing, technologically-creative areas of the world.

We’ve already introduced you to our keynote speakers. Here’s a look at the roundtables and panel discussions that will be available to attendees over the course of the conference. Learn more about FinovateAsia Digital at our FinovateAsia hub and pick up your ticket today!

Digital disruption and customer experience

Examine how customer demands have changed in the current environment. Discover how to build successful partnerships and distribution channels with customers in mind. Read more.

  • Sheila Paul, Chief Marketing Officer, Home Credit Philippines
  • Mikko Hietanen, COO, CreamQuark
  • Shawn Lau, VP, Partnerships Solutions, SwissRe
  • Justin Yiu, Head of Innovation, Solaria Labs East (Asia), Liberty Mutual Insurance
  • Gerald Marion, Chief Customer & Strategy Officer, BUPA ANZ
  • Moderated by Marc-Antoine Hager, Sales Director, APAC, CleverTap

Embedded finance and the future of finance

Learn how to harness the power of data and digitization to build new models of finance across verticals. See how to empower customers through better offerings, and how to integrate services into customers’ every day lives. Read more.

  • Victor Alexiev, Director, APAC Head for Citi Ventures, Programs & Strategic Partnerships, ICG, Citi
  • Sonal Kapoor, Director, Flipkart
  • Moderated by Yannick Even, Head of Digital & Smart Analytics APAC, SwissRe

The evolving payment landscape in Asia: Blurring of lines between payment systems

Examine the emerging challenges and opportunities in the payments space. Discuss how the payments industry can foster collaboration to serve consumers and businesses better. Read more.

  • Daniel Webber, Founder / CEO, FXC Intelligence
  • Laetitia Moncarz, Head of Corporates & FI and Business Innovation, SWIFT Asia Pacific
  • Kevin Popermhem, Cross Border Product Manager, ITMX
  • Moderated by Nicholas Soo, Regional Head of Payments, Global Liquidity & Cash Management, HSBC

Change management: Bringing your people on your digitization journey

Learn how implementing cultural change can future-proof your business and attract and retain the right, forward-looking, tech-talented people. Read more.

  • Faraaz Ali, Group Head, Digital Ecosystems, API and Open Banking, DBS
  • Susan Ong, Chief Information Officer, Home Credit Philippines
  • Oscar Ramos, Partner & Managing Director, Chinaccelerator
  • Deepak Oram, Head of Marketing Technology & Automation, HDFC Bank
  • Moderated by John Gist, Head of Fidelity Labs, Fidelity

Overcoming challenges and fostering successful partnerships across new ecosystems

Explore the convergence between financial services, insurance, wealth, and health, and the disruptors working across ecosystems. Learn how you can fit into this emerging ecosystem model and expand into new markets. Read more.

  • Deepak Sharma, Chief Digital Officer, Kotah Mahindra Bank
  • Manish Gurbuxani, Regional Head of Business Development and New Markets, Prudential
  • Alpesh Doshi, Managing Partner, Redcliffe Capital
  • Moderated by Yi Mien Koh, Chief Partnership Officer, Asian Markets, AXA Asia

SME lending in a post-COVID-19 world

Learn how credit and financing options favored by consumers have changed in response to the pandemic. Examine ways to determine the unique credit needs of different customer types and how to build new products to accommodate them. Read more.

  • Nikhilesh Goel, Co-founder and COO, Validus Capital
  • Brian Yeoh, Head of Data Governance and Strategy, Financial Services Regulatory Authority
  • Moderated by Zhi-Ying Barry, Senior Analyst, Forrester

Acceleration of digital banking: Innovating in response to COVID-19

Investigate how banks and other financial institutions embraced digital transformation trends that preceded the pandemic. Discuss what challenges and opportunities are likely to arise in a post-COVID environment. Read more.

  • Sam Tanskul, Managing Director Krungsri Finnovate & Head of Innovation, Krungsri Bank
  • Xue Kai Pang, CEO, Tokocrypto
  • Medhy Soudhi, Head of FinTech & StartupXcharge, DBS
  • Moderated by Lapman Lee, Professor of Practice (FinTech & Innovation), HK Polytechnic University

Leveraging emerging technologies and digitization to reimagine a hybrid customer experience

Discover how to identify customer pain points more efficiently and find the right balance between digital self-service and the human touch. Learn how to harness AI and machine learning to exceed customer expectations. Read more.

  • Andy Chun, Regional Director, Technology Innovation, Prudential
  • Shawn Low, Co-founder and Head of Operations, Better.com
  • Tomasz Kurczyk, Chief Digital and Transformation Officer, AXA
  • Moderated by Frank Yazdi, Head of Priority Client Services, Asia Pacific, HSBC

Photo by mentatdgt from Pexels

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Source: https://finovate.com/finovateasia-digital-disruption-embedded-finance-and-the-customer-experience/

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Crowdfunding

Business Expense Platform Expend Tops £500,000 Goal on Seedrs

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Fintech startup Expend has topped its £500,000 goal on Seedrs and currently stands at over £820,000 from 433 individual investors.

Expend previously raised capital from angel investors as well as a prior crowdfunding round.

The offering is for a 4.01% equity stake in Expend at a pre-money valuation of £19.7 million. The securities offering is EIS eligible.

Expend is a service that seeks to improve the expense management process by keeping businesses efficient by simplifying & automating operations. Either via a mobile App or website, Expend offers its service along with optional contactless payment cards, receipt & invoice management, mileage tracking, spending approvals and expense reimbursements all in one platform.

Expend is targeting the £13 billion travel and expense management sector.

Expend’s business model utilizes a hybrid revenue strategy with monthly recurring subscription revenue as well as income from the use of payment products and cards. For subscriptions, the fee starts at £6.99/month per user with enterprises over a certain size being charged less per user.

Expend reports that it more than doubled revenue in 2020. The securities offering is scheduled to end later this week.

Have a crowdfunding offering you’d like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

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Source: https://www.crowdfundinsider.com/2021/06/176667-business-expense-platform-expend-tops-500000-goal-on-seedrs/

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Crowdfunding

Business Expense Platform Expend Tops £500,000 Goal on Seedrs

Published

on

Fintech startup Expend has topped its £500,000 goal on Seedrs and currently stands at over £820,000 from 433 individual investors.

Expend previously raised capital from angel investors as well as a prior crowdfunding round.

The offering is for a 4.01% equity stake in Expend at a pre-money valuation of £19.7 million. The securities offering is EIS eligible.

Expend is a service that seeks to improve the expense management process by keeping businesses efficient by simplifying & automating operations. Either via a mobile App or website, Expend offers its service along with optional contactless payment cards, receipt & invoice management, mileage tracking, spending approvals and expense reimbursements all in one platform.

Expend is targeting the £13 billion travel and expense management sector.

Expend’s business model utilizes a hybrid revenue strategy with monthly recurring subscription revenue as well as income from the use of payment products and cards. For subscriptions, the fee starts at £6.99/month per user with enterprises over a certain size being charged less per user.

Expend reports that it more than doubled revenue in 2020. The securities offering is scheduled to end later this week.

Have a crowdfunding offering you’d like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/06/176667-business-expense-platform-expend-tops-500000-goal-on-seedrs/

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Crowdfunding

Business Expense Platform Expend Tops £500,000 Goal on Seedrs

Published

on

Fintech startup Expend has topped its £500,000 goal on Seedrs and currently stands at over £820,000 from 433 individual investors.

Expend previously raised capital from angel investors as well as a prior crowdfunding round.

The offering is for a 4.01% equity stake in Expend at a pre-money valuation of £19.7 million. The securities offering is EIS eligible.

Expend is a service that seeks to improve the expense management process by keeping businesses efficient by simplifying & automating operations. Either via a mobile App or website, Expend offers its service along with optional contactless payment cards, receipt & invoice management, mileage tracking, spending approvals and expense reimbursements all in one platform.

Expend is targeting the £13 billion travel and expense management sector.

Expend’s business model utilizes a hybrid revenue strategy with monthly recurring subscription revenue as well as income from the use of payment products and cards. For subscriptions, the fee starts at £6.99/month per user with enterprises over a certain size being charged less per user.

Expend reports that it more than doubled revenue in 2020. The securities offering is scheduled to end later this week.

Have a crowdfunding offering you’d like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/06/176667-business-expense-platform-expend-tops-500000-goal-on-seedrs/

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