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Noteworthy Tech & VC Trends
A year after the CHIPs Act was signed into law and offered $280 billion in subsidies, tax credits, R&D and grants to create chips in the U.S., opportunities still exist for small businesses to get in on the action.
+ The Department of Commerce has recruited Wall Street talent to help allocate billions in funding to hundreds of companies effectively.
+Senator Chuck Schumer of NY wields political heft in seeking funds for the state.
+ Indiana tests if the Heartland can transform into a CHIP hub, a test of efforts to stimulate regional economies through the CHIPS act,
Price competition in China for EVs has pushed pricing for some Tesla models to half the amount in Europe or U.S.
EV share of total US sales in 2023 is 7% - about the same level as last year. This compares to 16% in Europe and 32% in China.
CHINA-US ISSUES
China and US VCs brace for further decoupling and tighter times in Chinese dollar fund raising due to rising political tensions. Biden has blocked U.S. venture capital in sensitive sectors in China.
As U.S. turns away from its biggest scientific partner, it risks slowing American progress in biotech, clean energy and telecom. WSJ
DATA
US venture capital investment into China has dropped about 80% over the past year.
Since 2016, U.S. venture investors participated in more than 700 deals for Chinese startups in AI and semiconductor technology sectors and in over 2,700 Chinese startup deals overall worth $165.7 billion, according to PitchBook.
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