Source: Semiconductor Industry Watch. At yesterday's Conputex conference, Dr. Lisa Su released the latest roadmap. Afterwards, foreign media morethanmoore released the content of Lisa Su's post-conference interview, which we have translated and summarized as follows: Q: How does AI help you personally in your work? A: AI affects everyone's life. Personally, I am a loyal user of GPT and Co-Pilot. I am very interested in the AI used internally by AMD. We often talk about customer AI, but we also prioritize AI because it can make our company better. For example, making better and faster chips, we hope to integrate AI into the development process, as well as marketing, sales, human resources and all other fields. AI will be ubiquitous. Q: NVIDIA has explicitly stated to investors that it plans to shorten the development cycle to once a year, and now AMD also plans to do so. How and why do you do this? A: This is what we see in the market. AI is our company's top priority. We fully utilize the development capabilities of the entire company and increase investment. There are new changes every year, as the market needs updated products and more features. The product portfolio can solve various workloads. Not all customers will use all products, but there will be a new trend every year, and it will be the most competitive. This involves investment, ensuring that hardware/software systems are part of it, and we are committed to making it (AI) our biggest strategic opportunity. Q: The number of TOPs in PC World - Strix Point (Ryzen AI 300) has increased significantly. TOPs cost money. How do you compare TOPs to CPU/GPU? A: Nothing is free! Especially in designs where power and cost are limited. What we see is that AI will be ubiquitous. Currently, CoPilot+ PC and Strix have more than 50 TOPs and will start at the top of the stack. But it (AI) will run through our entire product stack. At the high-end, we will expand TOPs because we believe that the more local TOPs, the stronger the AIPC function, and putting it on the chip will increase its value and help unload part of the computing from the cloud. Q: Last week, you said that AMD will produce 3nm chips using GAA. Samsung foundry is the only one that produces 3nm GAA. Will AMD choose Samsung foundry for this? A: Refer to last week's keynote address at imec. What we talked about is that AMD will always use the most advanced technology. We will use 3nm. We will use 2nm. We did not mention the supplier of 3nm or GAA. Our cooperation with TSMC is currently very strong-we talked about the 3nm products we are currently developing. Q: Regarding sustainability issues. AI means more power consumption. As a chip supplier, is it possible to optimize the power consumption of devices that use AI? A: For everything we do, especially for AI, energy efficiency is as important as performance. We are studying how to improve energy efficiency in every generation of products in the future-we have said that we will improve energy efficiency by 30 times between 2020 and 2025, and we are expected to exceed this goal. Our current goal is to increase energy efficiency by 100 times in the next 4-5 years. So yes, we can focus on energy efficiency, and we must focus on energy efficiency because it will become a limiting factor for future computing. Q: We had CPUs before, then GPUs, now we have NPUs. First, how do you see the scalability of NPUs? Second, what is the next big chip? Neuromorphic chip? A: You need the right engine for each workload. CPUs are very suitable for traditional workloads. GPUs are very suitable for gaming and graphics tasks. NPUs help achieve AI-specific acceleration. As we move forward and research specific new acceleration technologies, we will see some of these technologies evolve-but ultimately it is driven by applications. Q: You initially broke Intel's status quo by increasing the number of cores. But the number of cores of your generations of products (in the consumer aspect) has reached its peak. Is this enough for consumers and the gaming market? Or should we expect an increase in the number of cores in the future? A: I think our strategy is to continuously improve performance. Especially for games, game software developers do not always use all cores. We have no reason not to adopt more than 16 cores. The key is that our development speed allows software developers to and can actually utilize these cores. Q: Regarding desktops, do you think more efficient NPU accelerators are needed? A: We see that NPUs have an impact on desktops. We have been evaluating product segments that can use this function. You will see desktop products with NPUs in the future to expand our product portfolio.

Recently, the Semiconductors Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer regarding the Biden administration's decision to launch a Section 301 trade investigation, focusing on China's behaviors, policies, and practices aimed at dominating the Semiconductors Industry.

China is a major player in the Global Semiconductor Industry, and Peking is striving to develop an 'independent and controllable' semiconductor industry through supply-side and demand-side measures. Recently, China has called for restrictions on the procurement of American chips, and statements regarding American chips being 'no longer safe or reliable' are particularly unsettling.

Given that Semiconductors are ubiquitous in our economy—from everyday Consumer Electronics and Autos to military systems and AI Datacenters—we urge the Office of the United States Trade Representative to proceed with caution and work closely with the industry throughout the process. Washington's leaders should also adopt a proactive agenda to build our domestic manufacturing and packaging capabilities, strengthen our research and design ecosystem, and create new demand for American-made chips both domestically and Overseas.

To maintain the USA's leading position in the world economy and Technology, we must stay at the forefront of semiconductor technology and establish resilient supply chains for the critical upstream materials used in chip production. We look forward to collaborating with the incoming Trump administration and the new Congress to maintain the resilience of the USA's semiconductor supply chain and ensure that the USA's semiconductor ecosystem remains globally dominant for many years to come.

The Technology supply chain faces risks.

The USA has intensified actions against China's ambitions in Technology leadership, with the Biden administration launching high-risk investigations into China's growing dominance in traditional semiconductor manufacturing.

The United States Trade Representative (USTR) is investigating whether China's practices, supported broadly by the government, constitute unfair competition, jeopardizing American industry and National Security.

The U.S. Trade Representative's office stated in a statement: "There is evidence that China seeks to dominate the domestic and Global markets of the Semiconductors Industry and has adopted extensive anti-competitive and non-market practices, including setting and pursuing market share targets, to achieve localization and self-sufficiency."

Traditional chips, which are critical in various fields from Autos and defense systems to Medical Devices, have become the latest battleground in the tech war between China and the USA, with both countries vying for control over this key area of the Semiconductors market.

John Neuffer, CEO of the Semiconductor Industry Association (SIA), stated in a release that, "Given the prevalence of Semiconductors throughout our economy—from everyday Consumer Electronics and Autos to military systems and AI Datacenters—we urge the U.S. Trade Representative's office to proceed with caution and work closely with the Industry throughout the process."

Neuffer further suggested that leaders in Washington should also promote a proactive agenda, "to build our domestic manufacturing and packaging capabilities, enhance our research and design ecosystem, and create new demand for U.S.-made chips both domestically and Overseas."

Analysts emphasized that sanctions on mature node Semiconductors could further impact China's domestic self-sufficiency and export agreements.

"Due to the limited access to advanced semiconductor nodes, additional sanctions against mature node technologies (such as MCUs, application processors, or connection components like Wi-Fi, Bluetooth, and RF) could have significant impacts on China," said Neil Shah, Vice President at Counterpoint Research, who added, "Such measures may undermine China's self-sufficiency in semiconductor production and consumption while complicating agreements for procuring chips from Overseas for domestic production and export."

"There is evidence that in just six years, China's global share of basic logic semiconductor capacity has almost doubled," stated the 301 Investigation document, "According to announced new manufacturing plants (fabs), China's share is expected to reach about double by 2029, accounting for half of the global capacity."

Additionally, forecasts show that China will be in a leading position in the production capacity of other types of traditional Semiconductors, such as power chips.

The U.S. Trade Representative Katherine Tai explained that the artificially depressed prices are squeezing out competitors and consolidating China's control over the market.

The statement added: "China's actions, policies, and practices appear to pose a threat to the USA and other economies, undermining the competitiveness of American industries and workers, critical U.S. supply chains, and the economic security of the USA."

Tai stated in the announcement, "This investigation highlights the Biden-Harris administration's commitment to protecting the interests of American workers and businesses, enhancing the resilience of critical supply chains, and supporting unprecedented investments in the industry."

In addition to the economy, this dominance also brings significant strategic risks.

Shah stated, "These components are crucial for fields such as space, defense, and autos; Chinese auto manufacturers $BYD COMPANY (01211.HK)$ are using them to drive cost-effective electric vehicle production." "Although the USA has alternatives, they are less cost-effective and could raise costs." The prices of U.S.-made products are reshaping the global competitive landscape.

The one-year investigation by the U.S. Trade Representative's Office will examine the impact of China's chip policies on American industries, including assessing vulnerabilities in critical sectors such as defense and medical devices, and investigating China's control over Silicon Carbide substrates, which are a crucial component of Semiconductors manufacturing.

This investigation was conducted after the Biden administration made a broader effort to strengthen the USA's semiconductor supply chain through the $52 billion CHIPS and Science Act.

Experts warn that the effectiveness of these domestic investments may be compromised if the issue of China's market manipulation is not addressed.

A public hearing is scheduled for March 2025, and the Office of the U.S. Trade Representative has also invited the Industry to participate in formulating a Global Strategy to promote the adoption of domestic chips, particularly in critical infrastructure.

Analysts warn that the success of such measures will depend on the serious implementation by the incoming Trump administration.

Faisal Kawoosa, founder and chief analyst at Techarc, said: "This investigation is unlikely to lead to a sudden supply disruption, as this would undermine the stability of the value chain. The direction and impact of this investigation will largely depend on how it is conducted. The Trump administration chose to push this initiative after taking office. Although this move could disrupt existing supply chains, the supply is unlikely to be suddenly cut off, as this might compromise the stability of the entire technology value chain."

"However," Kawoosa pointed out, "finding alternatives to Chinese components—especially where prices and production volumes are comparable—will be a significant challenge."

Shah stated that the chain reaction could force a significant restructuring of the supply chain, reshaping China’s role as a manufacturing center to meet domestic demand and the Global market.

"Mature node chips are still crucial for applications in areas such as space and defense (which the USA seems to be targeting) and the Autos industry. Companies like BYD are leveraging advanced semiconductor technology to develop cost-effective electric vehicles for domestic and global markets," Shah pointed out.

The traditional chip investigation is the latest fuse in the escalating technology competition between the USA and China, involving the fields of Semiconductors, AI, and Quantum Computing. Earlier this year, China implemented restrictions on key technology manufacturing materials in retaliation for the USA's export controls on advanced chips.

Meanwhile, Peking has also launched investigations into$NVIDIA (NVDA.US)$US companies such as these, highlighting the tit-for-tat nature of this conflict.

President Donald Trump is expected to continue Biden's aggressive approach, as Trump has imposed tariffs of up to 60% on Chinese Commodities, indicating that the USA will continue to exert pressure on Beijing's technological ambitions under his administration.

For businesses, the impact of this investigation is widespread, as companies in China that procure traditional chips may face increased costs, supply disruptions, or regulatory scrutiny, driving the diversification of the Industry Chain and the adoption of USA-produced chips may present opportunities, but it will also pose challenges in terms of Logistics, especially for industries reliant on cost-sensitive components.

SIA's Neuffer called for close collaboration between the government and the Industry in a statement, emphasizing the need for thoughtful policy-making to ensure the resilience of Semiconductors and continued leadership in the Global market.

The investigation by the office of the U.S. Trade Representative into China's dominance in traditional chips is not merely a trade dispute, but a struggle for technological leadership and strategic National Security in a rapidly evolving Global landscape. As Washington intensifies its efforts to counter Beijing's ambitions, the outcomes of this investigation could significantly influence the future of the Semiconducting industry and redefine the power balance in the Technology world.

Carvosa explained: "The government may need to 'compensate' businesses that are forced to adopt alternative sources with lower price competitiveness. Historically, the practice of 'turning off the taps' in global trade has proven problematic, creating a chain reaction that affects all parties, including the country that initiated the restrictions."

A spokesperson for China's Ministry of Commerce stated on the 23rd that on December 23rd, U.S. time, the Office of the U.S. Trade Representative announced the initiation of a 301 investigation related to China's chip industry policies. China expresses strong dissatisfaction and resolute opposition.

The spokesperson stated that the U.S. 301 investigation clearly shows unilateral and protectionist tendencies. Previously, the U.S. tariffs under the 301 investigation against China had been ruled by the WTO as a violation of WTO rules, facing opposition from numerous WTO members. China has repeatedly raised serious concerns with the U.S. The U.S., driven by repression against China and domestic political needs, has launched a new 301 investigation into China's chip industry policies, which will disrupt and distort the global chip industry chain and supply chain, and will also harm the interests of U.S. companies and consumers, making it a repeated mistake.

The spokesperson pointed out that the U.S. provides huge subsidies to its own chip industry through the CHIPS and Science Act, with U.S. companies holding nearly half of the global chip market share, yet they accuse China of so-called 'non-market practices' and exaggerate the threat of China's industry, which is clearly self-contradictory and entirely untenable. A report recently released by the U.S. Department of Commerce on mature process chips showed that chips made in China only account for 1.3% of the U.S. market share. China's exports of chips to the U.S. are far lower than imports from the U.S. China urges the U.S. to respect facts and multilateral rules and immediately stop erroneous practices. China will closely monitor the progress of the investigation and will take all necessary measures to firmly safeguard its own rights.

Editor/Rocky