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Alibaba To Set Up New Chip Company Amid Fear of US Tech Dependency (cnn.com)

Posted by BeauHD on from the self-sufficient dept.

hackingbear shares a report from CNN: China's biggest tech firm announced Wednesday that the new [semiconductor] business will develop artificial intelligence chips for cloud computing, internet-connected devices and other sectors. Alibaba's chief technology officer, Jeff Zhang, said the e-commerce company's advantages in algorithms and data put it in "a unique position to lead real technology breakthroughs in disruptive areas, such as quantum and chip technology." "The market for chips is controlled by America ... and suddenly if they stop selling, what that means, you understand," Alibaba Executive Chairman Jack Ma told university students in Tokyo in April. "That's why China, Japan and any country -- you need core technologies." Ma's remarks came shortly after the U.S. Commerce Department blocked American companies from selling parts to ZTE, a Chinese tech company that relied on U.S. suppliers, including chipmakers, to manufacture smartphones and telecommunications equipment. Slashdot reader hackingbear adds: "The since-lifted ban woke up China to the (political) risks of dependence on American technologies, just like the U.S. is afraid of dependency on Chinese rare earth products which account for ~80% of world's supplies."

2 of 60 comments (clear)

  1. Ma said several things by rmdingler · · Score: 2, Interesting

    Paraphrase: "Trade should not be used for war, but should instead foster peace."

    This does shed some light on the full ramifications of protectionist trade policy... much like thermonuclear war, there are no winners.

    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  2. Rare Earth Monopoly Nonsense by DatbeDank · · Score: 2, Interesting

    The rare earth metal monopoly the Chinese have is only predicated on their propensity to rape their environment with horrific processing of said metals.

    Before China, the US was the biggest producer. It just so happened a Chinese company bought out the US one thanks to Billy "didn't inhale" Clinton administration's inability to understand long term plans.

    The second they decide to screw with sales is the second another producer will come out and usurp them (like the Japanese recently did).

    It just means that companies like Apple will have to take a 950% markup over their usual 1000%.