Chinese Chipmakers and Smartphone Processors
Chinese chipmakers, such as Semiconductor Manufacturing International Corp (SMIC), are planning to produce advanced smartphone processors.
Despite U.S. attempts to limit their access to cutting-edge technology, SMIC, China’s leading chipmaker, is setting up new production lines in Shanghai.
The objective is to mass-produce 5-nanometer chips designed by Huawei, utilizing equipment from the U.S. and the Netherlands that is already in stock.
U.S. Restrictions and Technological Independence
The U.S. restricts companies from providing technology to SMIC without a special license, citing concerns about its alleged collaboration with China’s military, seen as a threat to U.S. national security.
In response, the Chinese government is investing heavily in building a self-reliant semiconductor supply chain, emphasizing the importance of technological independence.
Alphabet’s GFiber Business
Alphabet, Google’s parent company, plans to seek external investment for its GFiber business, which focuses on selling Wi-Fi and internet connectivity in parts of the United States.
The goal is to accelerate expansion into more cities, as GFiber faces competition from larger internet service providers like Comcast, Verizon Communications, and AT&T.
Currently, GFiber has not provided internet access in significant parts of the U.S., including six of the 10 most populous cities.
4. Alphabet’s Other Bets and External Capital
GFiber is part of Alphabet’s “Other Bets” category, alongside businesses like Verily and Waymo.
In 2023, the Other Bets collectively lost $4.1 billion on revenue of $1.5 billion.
Alphabet aims to sharpen its investment focus while capturing technological breakthroughs across its portfolio.
Other Bets, including GFiber, are seeking external capital to enhance their independence from Alphabet.
Alphabet’s Cost-Efficiency Measures
Alphabet, like other tech companies, is restructuring its cost base and has announced recent job cuts.
The relationship between GFiber’s fundraising effort and Alphabet’s cost-efficiency program is unconfirmed.