China, Vietnam, and Crypto Platforms Vie for Advantage
China's relentless pursuit of chip self-reliance continues, fueled by record investments in chipmaking equipment and a growing momentum from its small and midsize chipmakers. This comes amidst the ongoing tech war with the US, which has imposed curbs on Beijing's access to cutting-edge chips.
Chinese companies are exploring various loopholes to circumvent these restrictions. This includes procuring chips through small distributors, renting Nvidia-powered servers at overseas data centers, and even utilizing a virtual assets exchange to "tokenize" idle computing power globally and sell it to small and midsize companies, including those from China.
Vietnam is seizing the opportunity created by the China-US tech war. The country is drawing up a list of perks, including tax breaks and fast-track export processes, to woo investment from chip companies. However, Vietnam faces challenges in implementing this plan, including finding enough cash, power, and skilled labor.
Crypto platforms are also joining the "catch me if you can" game. They are offering access to Nvidia-powered computing capacity at cost-effective prices, masking the identities of their customers. This practice highlights the ingenuity of companies in finding ways to circumvent regulations.
The battle for chip dominance is intensifying. China is investing heavily in its chip industry, while Vietnam is positioning itself as an attractive alternative for chipmakers. Crypto platforms are also playing a role in this dynamic landscape. The outcome of this chip war remains to be seen, but it is clear that the stakes are high for all involved.