Trust the processor: America’s CHIPS Act one year on
Aug 9, 2023
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Shailesh Chitnis, a business writer at The Economist with a focus on the semiconductor industry, teams up with international reporter Avantika Chilkoti, who analyzes Britain’s foreign aid. They dissect the CHIPS Act, discussing its early successes and the ongoing challenges in U.S. semiconductor production, especially compared to Taiwan. They also tackle the controversial merger of UK's aid departments and its implications on international support. Lastly, they delve into the innovative sound branding of electric vehicles, showcasing the creative side of automotive marketing.
Despite challenges, the US is projected to have 18% of the world's leading-edge chip manufacturing capacity by 2025.
The merger of DFID and the UK's Foreign Office has led to reduced aid budgets, resulting in negative consequences such as increased unsafe abortions and lack of healthcare in recipient countries.
Deep dives
The Chips Act and America's Semiconductor Manufacturing
The Chips Act introduced by President Joe Biden aimed to bring back high-tech chip manufacturing to the US. While progress has been made with several chip manufacturing companies announcing plans to build fabs in the US, challenges remain. Building fabs in the US takes longer, costs more, and availability of skilled labor is an issue. Despite these challenges, the US is projected to have around 18% of the world's leading-edge capacity by 2025.
The Impact of UK's Aid Budget Cuts and Department Merger
The merger of the Department for International Development (DFID) and the UK's Foreign Office to form the Foreign Commonwealth and Development Office (FCDO) has brought significant changes to Britain's foreign aid distribution. Aid budgets have been reduced, and a larger portion of the aid is being spent on looking after refugees within the UK instead of reaching those in need abroad. The changes have led to negative consequences, including increased unsafe abortions, malnutrition, and lack of healthcare in countries that previously received significant aid from Britain.
The Sonic Battle in Electric Vehicles
As electric vehicles (EVs) become more prevalent, carmakers are facing the challenge of the absence of engine noise. To address this, carmakers are generating artificial sounds to mimic traditional petrol engines. Some examples include speakers in the bumpers that emit sounds of combustion engines and even screeching like a jet engine. These sounds serve both as a means to create a racy sports car experience for drivers and as a safety feature warning pedestrians of approaching EVs. Car companies are also exploring collaborations with musicians to create unique sounds that enhance the overall driving experience.
Big-money legislation to bring microprocessor manufacturing to the country is off to a reasonable start—but dominance of the industry is and will probably remain distant. Britain was once a leading light when it came to international aid; we ask why that reputation is now in tatters (tk:tk). And exploring all the funny noises coming from electric vehicles (tk:tk).
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