China's chip opportunity

I am going to keep today’s note brief. I know that many minds may be focused on the US elections.

The semiconductor industry has been one focus of the current imbroglio between China and the US. America has successively applied pressure on technology firms and their dealings with China. Most recently in September, the US imposed sanctions on SMIC, a Chinese chipmaker.

China’s transformation to the exponential age is dependent on silicon, of that there is no doubt. Whether it is improving manufacturing, transitioning to renewables, increasing agricultural output, driving innovation, the core technology of the exponential age will be artificial intelligence, or computation, or whatever you want to call it.

China has “consumed more chips than the rest of the world combined every year since 2012.”