Huawei Technologies Co. and Semiconductor Manufacturing International Corp., already blacklisted by the U.S., launched a new phone using highly advanced technology that has sparked concern in Washington. To help you understand what is going on in the trade/China landscape and what we expect may happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
China’s big chip breakthrough is less than meets the eye. Recent news, that telecom giant Huawei collaborated with China’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC) on an advanced processor to power its latest smartphone, set off alarm bells in Washington.
But the chip they produced is still five years behind the cutting edge — an eternity in semiconductor time. And without access to more advanced equipment, which is limited by export controls, Beijing will struggle to produce additional breakthroughs, despite heavily subsidizing various semiconductor manufacturing initiatives.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Nevertheless, don’t be surprised if Uncle Sam further tightens restrictions on China’s access to semiconductor manufacturing equipment. By some accounts, U.S. enforcement of export controls has been less stringent than expected, a consequence of industry lobbying.
But critics also say these regulations were poorly designed, allowing China to access less-advanced equipment still capable of making more advanced chips, though not well enough to be commercially viable.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff TalkThe Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
Sam's Club Plans Aggressive Expansion: Discover Its New LocationsSam's Club expansion plans will open up to 15 new stores each year. Learn where they plan to open in 2025.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
-
Trump's Sweeping New Tariffs Rattle Wall Street, Main StreetThe Kiplinger Letter Trump is promising that the short-term pain of steep new tariffs on imports will spark a manufacturing renaissance. But they pose major risks in the near term.
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
Congressional Republicans Tackle Trump's AgendaThe Kiplinger Letter Despite slim majorities in both chambers, the GOP is gearing up to overhaul taxes, border security and more.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
A Move Away From Free TradeThe Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
-
The Explosion of New AI ToolsThe Kiplinger Letter Workers and consumers soon won’t be able to escape generative AI. Does that mean societal disruption and productivity gains are right around the corner?
