China’s NEW Aircraft Just DUMPED All Boeing & Airbus Planes… What’s NEXT?
BlowMe AI
Sep 28, 2024
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Transcript
- 0:00
- China's comac c919 is shaking up the commercial aircraft industry in a big way this $99
- million jet isn't just another plane it's a direct challenge to the Boeing Airbus dominance that has ruled the
- skies for decades and the big players are starting to feel the heat why the
- c919 is not only priced lower than the A320 Neo and 737 Max 8 but it's also
- backed by Massive government support in 2020 alone China funneled between 49
- to 72 billion into comac research and development that kind of investment is
- turning heads in boardrooms from Seattle to too built by the commercial aircraft
- Corporation of China the c919 is designed to rival the Boeing 737 and
- Airbus A320 aircraft that serve as the backbone of many Airline fleets worldwide the
- debut of this Chinese airliner at an international show signaled a potential shift in the commercial Aviation
- 1:04
- landscape one that has been controlled by a duopoly for decades but here's where it gets really interesting bruny's
- galip a just placed a $2 billion order for 30C 919 aircraft becoming the first
- International customer for this Chinese Challenger this isn't just a purchase it's a vote of confidence that could
- open the floodgates for more International orders and with China's domestic Market alone expected to need
- over 8,000 new aircraft in the next two decades Boeing and Airbus could be facing a serious threat to their market
- share China's journey into commercial Aviation manufacturing began in Earnest
- with the founding of comac in 2008 the company has received over $70 billion in
- state related support reflecting China's determination to establish itself in this high-tech industry this level of
- investment underscores the Strategic importance China places on developing its own own commercial aircraft
- 2:01
- manufacturing capabilities both as a means of reducing Reliance on foreign manufacturers and as a Showcase of its
- technological prowess the c919 project is a Cornerstone of this effort the
- aircraft is a twin engine narrow body airliner measuring 128 ft in length it
- can accommodate between 158 and 192 passengers depending on the
- configuration putting it in direct competition with the Boeing 73 7 and Airbus a
- 320 the c919 dimensions are comparable to its Western Rivals measuring 38.9 m
- in length with a 35.8 M wingspan it's powered by two leap 1C engines from CFM
- International a joint venture between GE Aviation and saffron aircraft engines
- these engines offer a 15% reduction in fuel consumption compared to previous generations addressing both economic and
- 3:00
- environmental concerns comac has invested heavily in the c919 avionics to compete with
- industry leaders the cockpit features a modern glass design with large LCD
- displays enhancing pilot efficiency and awareness the aircraft incorporates a
- full flyby wire control system matching the latest Airbus and Boeing models in
- Flight control technology passenger Comfort was a key consideration in the c919 design
- the cabin boasts larger overhead bins wider seats and advanced air filtration
- systems these features aim to make the c919 competitive not just in terms of
- cost but also in passenger experience the market potential for the c919 is
- significant Boeing's commercial Market Outlook 2020 to 2039 projects global
- commercial Fleet growth to 48,4 aircraft by 2039 with 43% of new
- 4:00
- deliveries destined for the asia-pacific region the first prototype of the c919
- flew in 2017 and the aircraft entered service with state-owned China Eastern
- Airlines in 2023 despite its impressive debut the
- c919 faces significant challenges in its quest to compete on the global stage one
- of the most notable issues is the aircraft's weight the c919 is heavy than its competitors
- partly due to the use of aluminum instead of advanced composite materials for the wing box this extra weight
- translates to reduced efficiency and a shorter range of 3,000 nautical miles
- compared to the A320 3400 and the 737s
- 3,500 nautical miles the c919 comes in at 99 million that's $12 million less
- than an A320 Neo and $7 million less than a 737 Max 8 in an industry where
- 5:03
- every dollar counts these price differences are turning heads another major hurdle for the c919
- is the lack of an international support network for maintenance and training this is a critical factor for Airlines
- considering adopting a new aircraft type as the availability of spare parts maintenance facilities and trained
- Personnel can significantly impact an Airlines operations and bottom line moreover the c919 supply chain presents
- potential vulnerabilities about 60% of the c919 suppliers are American companies with
- another third being European this dependency on Western components could prove problematic in the face of
- geopolitical tensions potentially exposing the program to supply disruptions or export
- restrictions certification hurdles present another significant obstacle
- while the c919 is certified in China it has yet to receive approval from
- European or American Aviation authorities this limits its potential Market reach as many countries rely on
- 6:06
- these certifications as a benchmark for Aviation safety comac has stated its
- intention to seek European certification in 2024 but has not announced plans for
- us certification despite these challenges recent events in the aviation industry have created opportunities for
- the c919 Boeing one of the two dominant players in the market has faced a series
- of setbacks in recent years these include two fatal 737 Max crashes in
- 2018 and 2019 which led to a global grounding of the aircraft type and a more recent
- incident in January 2024 where a door plug blew out during flight on a 737 Max
- 9 these issues have led to increased scrutiny from Regulators damaged Boeing's reputation and caused
- production delays potentially opening the door for new competitors the global Aviation Market is also
- 7:02
- experiencing a shortage of aircraft particularly in Asia where air travel demand is growing rapidly this shortage
- exacerbated by production delays at Boeing has left Airlines scrambling for planes to meet passenger demand in this
- context some carriers may be willing to consider the c919 as an alternative
- especially if it can offer competitive pricing comac strategy involves a gradual Market entry focusing initially
- on on the domestic Chinese market before expanding regionally this approach allows the company to build a track
- record of safe operations and refine its product before tackling more competitive International markets the company aims
- to ramp up production from 26 aircraft in 2024 to 72 annually by the end of the
- decade targeting a 5% share of the global commercial aircraft Market currently comac has received over 800
- orders for the c919 primarily from Chinese Airlines however there is
- 8:00
- growing interest from carriers in Southeast Asia Indonesia's transnusa partly owned by a Chinese leasing
- company has already begun operating comac's smaller arj21 Regional Jet and
- has expressed openness to the c919 this Regional expansion could serve as a stepping stone for comac's Global
- Ambitions industry reactions to the c919 are mixed many analysts remain skeptical
- about comac's ability to compete globally citing the aircraft's technical limitations and the company's lack of
- experience in the commercial Aviation Market however others draw parallels to airbus's early days noting that the
- European manufacturer also faced doubts before eventually challenging Boeing's dominance the c919 took to the skies
- above Singapore for its first International outing the Singapore Air Show 2024 provided a crucial stage for the
- c919 to demonstrate its capabilities to an international audience notably Boeing
- 9:00
- did not bring any commercial aircraft to the show Shifting the spotlight to Airbus and the
- c919 this absence underscored Boeing's ongoing challenges and the changing dynamics of the commercial Aviation
- Market Boeing's recent difficulties extend beyond safety concerns the company reported a decline in aircraft
- orders and deliveries in January 2024 delivering only 27 planes compared to 67
- in December 2023 the Federal Aviation administ ation has halted Boeing's planned production increases and is
- conducting audits of the company's manufacturing processes further complicating the American manufacturers
- recovery efforts these developments occur against the backdrop of China's broader Ambitions in Aerospace and
- defense the country has been investing heavily in various Aerospace projects from commercial Aviation to space
- exploration as part of its strategy to become a global technological leader the
- c919 program is just one piece of this larger puzzle reflecting China's
- 10:02
- determination to compete in high-tech Industries traditionally dominated by Western Nations as the c919 takes its
- first steps onto the international stage the aviation industry watches with Keen
- interest while significant hurdles Remain the aircraft represents China's determination to challenge the
- established order in commercial Aviation the coming years will reveal whether the c919 can truly compete on a global scale
- and potentially reshape the Dynamics of the commercial aircraft Market the story of the c919 is not just about a new
- airplane it's about the shifting balance of technological and economic power in the 21st
- century as China continues to invest in high-tech Industries its ability to compete in sectors long dominated by
- Western companies will have far-reaching implications for global trade technology
- and geopolitics for Airlines the entry of a new player in the commercial
- aircraft Market could lead to increased competition and potentially more choices
- 11:04
- when it comes to Fleet planning however Airlines will need to carefully consider factors such as
- operating costs reliability and long-term support before adopting a new aircraft type like the
- c919 for passengers the impact of the c91 9's entry into the market may be
- less immediately apparent however increased competition in aircraft manufacturing could potentially lead to
- Innovations in aircraft design and passenger comfort as manufacturers strive to differentiate their products
- as the c919 continues its Journey from concept to commercial reality it serves
- as a tangible symbol of China's technological Ambitions and its quest to reshape Global Industries whether it
- ultimately succeeds in challenging the Boeing Airbus duopoly or not the c919
- has already made history by bringing China into the exclusive Club of Nations capable of producing large commercial
- 12:01
- airliners China's comac c919 is Making Waves that are rocking
- the very foundations of the commercial aircraft industry this isn't just another plane it's a $99 million
- challenge to the Boeing Airbus duopoly that's had a strangle hold on our skies for decades and guess what the big
- players are starting to sweat why because the c919 isn't just undercutting
- the A320 Neo and 7 37 max aid on price
- it's backed by the full might of the Chinese government with a whopping $49 billion to $72 billion pumped into comac
- for research and development in 2020 alone that's the kind of cash that turns heads and raises eyebrows in boardrooms
- from Seattle to too but here's where it gets really interesting brunai Gallop air just placed a 2 billion doll order
- for 30 c919 aircraft becoming the first International C customer for this
- Chinese Challenger this isn't just a purchase it's a vote of confidence that could open the floodgates for more
- 13:06
- International orders and with China's domestic Market alone expected to need over 8,000 new aircraft in the next two
- decades Boeing an Airbus could be facing a serious threat to their market share the c919 isn't just about competing on
- price though it's packing some serious Tech including a composite horizontal stabilizer and a flyby wire flight
- control system while it may not be revolutionary it's a clear statement of China's ambition to play in the big
- leagues of aviation technology now let's talk numbers the c919 can seat between 158 and 192
- passengers putting it right in the sweet spot for single Isle Jets its extended range variant can fly up to 3,000
- nautical miles not quite matching its Western Rivals but impressive for a first attempt and remember that $99
- million price tag that's a to $12 million less than an A320 Neo and $7
- 14:03
- million less than a 737 Max 8 in an industry where margins matter those
- figures are turning heads but it's not all smooth flying for comac and the c919 they're facing some serious
- turbulence in the form of regulatory hurdles without certification from heavyweights like the FAA and Isa the
- c919 international Ambitions could be grounded before they even take off and let's not forget the of building a
- Global support network for maintenance and spare parts an area where Boeing and Airbus have Decades of experience
- perhaps the biggest challenge though is perception there's still skepticism in some quarters about the quality and
- safety of Chinese made aircraft comac will need to work overtime to build trust and prove that the c919 can go
- toe-to-toe with its Western competitors in terms of reliability and performance despite these challenges it would be a
- mistake to underestimate comac and the c919 the Chinese government has made it
- 15:03
- crystal clear that developing a worldclass aviation industry is a national priority and they're putting
- their money where their mouth is this isn't just about building planes it's about reshaping the global balance of
- power in the aviation industry and comac isn't going it alone the
- c919 project involves Partnerships with numerous Western companies including CFM
- International for engine honey well for avionics and leir for the landing gear system this collaboration brings
- valuable expertise to the table and helps mitigate some of the technical risks let's dive deeper into the c919
- specifications the aircraft is 38.9 M long with a wingspan of 35.8 M
- comparable to its Western counterparts it's powered by two leap 1C engines developed by CFM International a joint
- venture between GE Aviation and saffron aircraft engines these engines are designed to reduce
- 16:01
- fuel consumption by 15% compared to previous generation engines a significant selling point in an era of
- rising fuel costs and environmental concerns the c919 avionic system is
- another area where comac has aimed to compete with the best the cockpit features a state-of-the-art glass
- cockpit with large LCD displays reducing pilot workload and enhancing situational
- awareness the aircraft also incorporates a full flyby wire control system putting
- it on par with the latest offerings from Airbus and Boeing in terms of flight control technology in terms of materials
- the c919 uses a mix of aluminum and composite materials while not as
- advanced as the latest Western aircraft in terms of composite usage it still represents a significant step forward
- for China's Aerospace industry the use of composits in key areas like the horizontal stabilizer helps reduce
- weight and improve fuel efficiency comac has also focused on passenger comfort in
- 17:03
- the c919 design the cabin features larger overhead bins wider seats and
- improved air filtration systems these features are designed to make the c919
- competitive not just on price but also on passenger experience the order book
- for the c919 is growing as of now comac claims to have received over 1,000 orders and
- commitments for the aircraft primarily from Chinese Airlines and leasing companies while this number is
- impressive it's worth noting that many of these are tentative agreements rather than firm orders still it demonstrates
- the significant interest in the aircraft particularly within China looking at the broader Market the potential for the
- c919 is enormous according to Boeing's commercial Market Outlook 2020 to 2039
- the global commercial Fleet is expected to grow to 48,4 aircraft craft by 2039 with 43% of
- 18:02
- all new deliveries going to the asia-pacific region if comac can capture even a small portion of this Market it
- could significantly disrupt the current duopoly the c919 is just the beginning
- of comac Ambitions the company is already working on a widebody aircraft the
- cr929 in collaboration with Russia's United aircraft Corporation this
- aircraft is aimed at competing with the Boeing 787 and Air bus a350 further
- expanding China's presence in the commercial Aviation Market the impact of the
- c919 extends Beyond Just Aircraft sales it's part of China's broader strategy to
- move up the value chain in manufacturing and become a leader in high-tech Industries success in commercial
- Aviation could have spillover effects into other sectors boosting China's overall technological capabilities for
- Airlines the entry of the c919 into into the market could provide more options
- 19:00
- and potentially lower costs competition tends to drive Innovation and efficiency
- which could benefit carriers and passengers alike however Airlines will need to carefully weigh the potential
- savings against the challenges of introducing a new aircraft type into their fleets the geopolitical
- implications of the c91 19's development are also significant as tensions between
- China and Western countries continue the aviation industry could become another arena for competition and potential
- conflict trade restrictions or sanctions could impact comac's ability to Source components or sell aircraft to certain
- markets the comac c919 represents a bold challenge to the established order in commercial Aviation
- while it faces significant hurdles its potential to disrupt the market shouldn't be underestimated as the
- aircraft moves closer to widespread commercial service all eyes will be on its performance reliability and Market
- acceptance the next few years will be crucial in determining whether the c919 can truly shake up the commercial
- 20:03
- Aviation landscape China's Aviation Ambitions SAR to new heights as galip a
- a brunai based Airline places the first International order for 30 comac c919
- aircraft this $2 billion deal doesn't just add new planes to a fleet it
- challenges the long-standing Boeing Airbus duopoly and potentially reshapes the future of commercial Aviation is
- this the beginning of a new era in the skies the agreement Inked during the China oan Expo marks a significant
- milestone in cooperation between China's domestic aircraft manufacturer and a foreign Airline galip a is set to become
- the world's first overseas airline to adopt China's domestic large aircraft as its primary Fleet and the first
- International user of freighter and medical Business Jet variants of the arj21 for decades Boeing and Airbus have
- dominated the commercial air Craft Market creating a duopoly that seemed impenetrable now with comac
- 21:04
- c919 entering the international stage we're witnessing a potential shift in the balance of power within the aviation
- industry the c919 China's answer to the Airbus a 320
- and Boeing 737 represents years of research development and significant investment
- with a seating capacity of 158 to 192 passengers it's designed to compete
- directly with the most popular single Isle jets in the world galip's decision to order the c919 is a bold statement of
- confidence in Chinese Aviation Technology this vote of confidence could encourage other airlines to consider the
- c919 potentially disrupting the Boeing Airbus duopoly the implications of this
- deal extend beyond aircraft sales it's a strategic move that could deepen China
- oan ties and contribute to the construction of the Guang Shi brunai economic Corridor Gallup a plans to use
- 22:03
- these Chinese made aircraft to strengthen Aviation connections with China with initial launch destinations
- likely to be nanning and gilin in South China's Guang Xiang autonomous region
- however comac and the c919 face significant challenges one of the biggest hurdles is obtaining
- certification from International Aviation authorities like the Federal Aviation Administration and European
- Union Aviation safety agency without these certifications the c919
- ability to operate in major International markets will be limited moreover comac needs to ramp up
- production ensure consistent quality control and build a robust Global support network for maintenance and
- spare parts these are not trivial tasks especially for a relatively new player in the commercial aircraft Market
- despite these challenges the potential impact of the c919 entry into the international market is enormous
- if successful it could lead to increased competition in the aircraft manufacturing industry potentially
- 23:04
- resulting in more Innovation better products and possibly lower costs for Airlines and passengers alike the c919
- has already completed its inaugural commercial flight from Shanghai to Beijing marking a significant milestone
- for China's aviation industry according to he dong fun chairman of comac orders
- for the c919 have reached an impressive 1,6 1 units with two already delivered
- it's not just about the c919 either comac's Regional Jet the
- arj21 is also gaining traction with 112 aircraft already in service and 775
- orders on the books it's clear that comac is making significant inroads in the commercial Aviation Market giper
- itself is an interesting player in this story as a new Airline providing hybrid Flight Services its positioning itself
- as a complement to Royal brunai Airlines effectively becoming bruni's second flag carrier their long-term Vision involves
- 24:06
- building a Southeast Asian Air transport hub using Chinese made aircraft a
- strategy that could have far-reaching implications for Regional Air travel this deal between galip a and comac is
- more than just a business transaction it's a symbol of the changing Dynamics in global Aviation it represents China's
- ambition to become a major player in the high-end manufacturing industry and its growing influence in the global economy
- if the c919 proves successful we could see a more diverse and competitive aircraft Market this could lead to
- accelerated Innovation as Boeing and Airbus work to maintain their Market positions Airlines might have more
- choices when it comes to Fleet planning potentially leading to more efficient operations and better service for
- passengers however the road ahead for comac and the c919 is not without obstacles they need
- to prove they can deliver on their promises meet stringent International safety standards and build a reputation
- 25:05
- for reliability the aviation industry is notoriously unforgiving when it comes to
- safety and performance and comac will need to meet these high standards consistently geopolitical factors could
- play a significant role in the c919 international success trade
- tensions and technological competition between China and Western countries could impact the aircraft's adoption in
- certain markets the c919 is not just an aircraft it's a symbol of China's technological prowess
- and its ambition to compete on the global stage years of research development and investment have gone
- into creating this aircraft and it's a testament to China's engineering capabilities the c919 designed for short
- to medium Hall flights boasts impressive features it's fuele efficient environmentally friendly and offers a
- comfortable passenger experience in many ways it's comparable to its Western counterparts the Airbus a 320
- 26:03
- Neo and Boeing 737 Max galip though not a household name like Emirates or
- Singapore Airlines is making a bold move with this order based in brunai this ambitious Airline is eager to expand its
- reach and connect southeast Asia to the world ordering 30C 919 aircraft is a
- clear signal of their ambition and their Readiness to take on the big players in the aviation indust industry while the
- framework agreement has been signed the deal isn't finalized yet the c919 still
- needs to receive type certification from the European Union Aviation safety Agency for it to operate commercially in
- Europe This certification is crucial for comac and galip as it's a stamp of approval from a globally recognized
- Authority assuring passengers and Airlines alike of the aircraft's safety and airworthiness deliveries are
- expected to begin in the third quarter of 2024 but this is contingent on the
- 27:02
- c919 receiving easa certification it's a waiting game for now but the anticipation is building in this order
- isn't just about 30 planes it's a symbolic victory for comac marking their arrival as a serious player in the
- global Aviation market for China it's a matter of national pride the
- c99 represents their technological advancement and their ability to compete in a highly complex and competitive
- industry this deal has the potential to reshape the aviation landscape fostering
- competition driving Innovation and ultimately benefiting passengers worldwide of course with any new
- entrance in a competitive market there are bound to be challenges the aviation industry is no exception and the
- introduction of the comac c919 is stirring up quite a bit of conversation the c919 faces stiff
- competition from established players like the Airbus a 3 20 Neo and Boeing
- 737 Max these aircraft have been the backbone of many airlines fleets for years and come with a proven track
- 28:06
- record of reliability and performance the c919 on the other hand is the new kit on the Block and has a lot to prove
- some industry experts have raised concerns about the c91 19's ability to match the production capacity of its
- Rivals which could pose a risk if geopolitical tensions rise additionally ramping up production to meet Global
- demand is a significant challenge that comac will need to address others question whether Airlines and passengers
- particularly in Western markets will be willing to embrace a chinese-made aircraft there are concerns about the
- perception of quality and safety as well as potential biases against products from China Airlines will need to be
- convinced that the c919 can deliver the same level of performance and reliability as its
- Western counterparts these are valid concerns and only time will tell how com addresses them the company will need to
- 29:00
- work hard to build trust and demonstrate that the c919 is a viable alternative to the
- established players this will involve not only proving the aircraft's technical capabilities but also ensuring
- that it meets the stringent regulatory requirements of different markets however the c919 entry into the market
- is undoubtedly a positive development fostering competition and potentially driving down costs for Airlines and
- passengers alike increased competition can lead to Innovation and improvements in the industry benefiting everyone
- involved the success of the c919 could also pave the way for more entrance from
- other regions further diversifying the market and providing more options for Airlines and passengers the aviation
- industry is on the cusp of significant change the entry of the c919 into the international market represents not just
- a new aircraft but a potential shift in the global balance of power in aviation manufacturing the success uccess or
- failure of the c919 could have far-reaching implications for the future of air travel potentially affecting
- 30:05
- everything from ticket prices to the types of aircraft will be flying in for years to come what are your thoughts on
- this deal do you think the c919 has what it takes to compete with the established players or will the
- challenges prove too much for comac to overcome
- share your views in the comments below
- think of semiconductors as the oil of the 21st century
- just as oil fueled the Industrial Revolution these
- tiny chips are powering our digital Revolution well China's Huawei is challenging Nvidia with a new chip for
- artificial intelligence according to the Wall Street Journal Huawei has reportedly told potential clients that
- the chip is comparable to nvidia's h100 in a stunning development that's
- sending shock waves through the tech World Huawei has unveiled its latest high-end AI chip the Ascend 90010 C this
- isn't just another processor it's a direct challenge to nvidia's h100 the
- 31:01
- current gold standard in AI Computing the Ascend 910c isn't just a
- technological achievement it's a bold statement in the ongoing silicon showdown between the US and China if
- huawei's claims hold up this chip could potentially reshape the global AI landscape tilting the scales of
- technological power in China's favor in 2022 the US decided to play hard ball
- withina China's Tech Ambitions they rolled out strict export controls
- telling American companies no selling topnotch chips or chipm gear to China
- the goal was clear keep China from accessing cuttingedge semiconductor technology and slow its technological
- advancement but here's where it gets interesting faced with this digital blockade China didn't throw in the towel
- instead they launched a massive allout push to develop their own chip technology we're talking billions of
- 32:01
- dollars poured into research and development state-of-the-art facilities popping up across the country and a
- national rallying cry for Tech Independence despite or perhaps because of the US restrictions China's
- semiconductor production has skyrocketed we're seeing a jaw-dropping 29% increase
- compared to the previous year but that's not all in a move that's left analysts scratching their heads China managed to
- import over 1,000 Advanced lithograph machines each of these machines costs
- around $10 million do the math and you're looking at a serious investment in chipm muscle
- Dr deer Ernst a leading expert in the tech World puts it this way China's push
- for Tech self-reliance is accelerating in response to us pressures in other
- words the harder the US pushes the harder China pushes back this unexpected
- turn of events is raising a critical question did did America's chip ban accidentally light a fire under China's
- 33:01
- semiconductor industry it's as if the US attempt to put out a fire has instead
- doused it with gasoline The Fallout from this semiconductor Showdown extends far
- beyond geopolitics remember the great chip shortage of 2021 that made buying a new
- car feel like scoring tickets to a soldout concert that was just a preview of how chip politics can disrupt daily
- life now consider the implication of China potentially dominating chip production it's not just about consumer
- electronics we're talking about the foundation of emerging Technologies like AI Quantum Computing and 6G networks
- these gamechanging Innovations all hinge on Advanced semiconductors whoever leads in chips
- leads in these transformative Technologies and right now China's making a serious play for the top spot
- the US government's concerns go beyond economic competition the revised rules
- were clear about us worries over China's plans for advanced AI capabilities the
- 34:05
- document stated Advanced AI capabilities facilitated by supercomputing built on
- Advanced semiconductors present US National Security concerns because they can be used to improve the speed and
- accuracy of military decision-making planning and Logistics they can also be used for cognitive electronic warfare
- radar signals intelligence and jamming the this statement underscores the Dual
- use nature of semiconductor technology what powers your smartphone could also
- enhance military capabilities blurring the lines between civilian and defense Technologies China isn't taking these
- restrictions lying down in response to the latest us moves China has criticized
- the new rules stating they will disrupt the international semiconductor Market
- as well as cooperation among Enterprises but China's actions speak
- louder than words reports suggest that China is taking steps to block the use
- 35:04
- of American processors in government computers instead favoring Chinese
- Chips new guidelines reportedly instruct government offices and Chinese Communist
- Party entities above the township level to use safe and reliable systems
- including processors and operating systems developed by Chinese companies this push for self-reliance extends to
- chip manufacturing as well various provincial governments in China are ramping up subsidies for chip
- manufacturing companies like semiconductor manufacturing International Corp and Huawei appear to
- be major beneficiaries of these subsidies in Shanghai alone 191 major
- projects are set to be subsidized including two of smic's 300 millimeter
- production lines currently under construction the US isn't throwing in the towel just yet
- enter the chips act a massive 52 billion investment aimed at boosting domestic
- 36:03
- chip production it's an attempt to rebuild America's semiconductor muscle which has atrophied over Decades of
- Outsourcing the results are starting to show there's been a surge in electronics Factory spending in the US with
- Investments hovering near all-time Highs but here's the rub while America's
- buildout is impressive it's still playing catchup to China's Breakneck Pace while the US government has been
- successful in getting its companies and Allied Partners to comply with tighter regulations Western companies are not
- particularly happy at the prospect of losing China's business Nvidia for instance used to have a 90% share of
- China's AI chip Market the company's head Jensen hang reportedly said in June
- last year that continuing us export control regulations will lead to permanent loss of opportunities for the
- US industry asml another critical player in the ship and semiconductor industry
- has also raised concerns asml CEO Peter wenink warned
- 37:04
- that cutting off China could drive Innovation within the country potentially making China more
- competitive at the cost of others he stated there are 1.4 billion Chinese
- many of them smart they come up with solutions that we have not yet thought of you force them to become very
- innovative
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