Biden signs Chip and Science Act into law and sets off domestic and international markets

On August 9th, President Biden signed the Chip and Science Act into law. After the bill was signed, in the U.S. chip stocks, Ram Research fell 7.88%, Mywell Technology fell 7.79%, Applied Materials, Corex, Azenta, AMKR also fell up to 7.58%, Wolfspeed, Teradyne, Entegris, ON Semiconductor, SLAB fell up to 6.98%, GFS (GFS) closed down 5.95%, STM and ASML fell more than 5.52%, Nvidia fell 3.97%, and Micron Technology fell 3.74%.

 In the evening of August 9, the Central Commission for Discipline Inspection (CCDI) announced that Du Yang, former director of Huaxin Investment Management Co, and Yang Zhengfan, deputy general manager of the third department of investment, had been investigated. In recent times, the “chip industry” has become the hardest hit by anti-corruption, from the former president of the chip fund management company Lu Jun was investigated in July, following the former chairman and general manager of Ziguang Group, Zhao Weiguo was arrested as well as the previous chip fund president Ding Wenwu. Chip fund Shenzhen sub-fund partner Wang Wenzhong was investigated in November 2021, the former vice president of the chip fund manager “Huaxin Investment” Gao Songtao was investigated as well.

 In recent years, the chip fund of the CCP has earned a tremendous amount of money from their investments, but in the end, Communist China’s chip research is still strangled by the US and other western countries. The large amount of money invested by the CCP has not produced domestic alternative chips and materials, and all benefits went to corrupt officials, who have always “faked, cheated and stolen” from the technology of the West.

 After the bill was passed by President Biden, chip companies must choose between the U.S. and Communist China.