You are receiving this email because you signed up to receive our free e-letter Gilder's Guideposts, or you purchased a product or service from its publisher, Eagle Financial Publications. [Gilder Guideposts] [Technology Report]( [Tech Report PRO]( [Moonshots]( [Private Reserve]( Guideposts: When We Have to Beg the Chinese for Their Technology, Will the China Hawks Lead the Delegation? by George Gilder and Richard Vigilante
03/22/2023 SPONSORED CONTENT [The #1 Energy Passive Income Investment for 2023]( It's not a stock, bond or private company... But this little-known alternative investment could hand you BIG MONTHLY INCOME from the oil and gas surge in 2023. [CLICK HERE TO FIND OUT WHAT IT IS.]( Last week, George told of some of the astonishing innovations on display at this yearâs World Mobile Congress in Barcelona Spain, with a climax of graphene-enabled devices offering transformative potential for global telecommunications. On display were breakthroughs from the United Kingdom, Sweden, Germany, Israel, Japan, China and even some from the United States. Alas, in the United States these days, hardware is mostly considered too hard. And where would we manufacture the stuff anyway, requiring horrors, chemicals and horror of horrors, energy production? Making hardware just âainâtâ green enough for the USA, though grapheneâa C02 sink not sourceâcould make it so. Amidst even this august assemblage in Barcelona, however, one company stood out, nay dominated the field, the same Chinese company that had invited George to attend: Huawei. Yes, that Huawei, the worldâs most formidable innovator of wireless telecom equipment, with markets in 170 countries and world-leading investments in R&D. Huawei, which you never heard of until it was depicted by the U.S. government as a sinister tool of the Communist Party, as if CCP leaders could even create a billion-dollar, world-leading enterprise to do a job 10,000 teenage hackers in Beijing could do as well while chilling between PhDs. When the same officials could not identify any such device or explain how American network operators or Huaweiâs highly motivated U.S. competitors could fail to detect it, they abandoned their original story, confident the mud would stick. The new line was that Huawei couldnât be trusted because it had pledged to assist Chinese security agencies against threats to their nation. Yet American companies operate under similar constraints and have been forced to leave their own networks insecure so U.S. intelligence agencies can hack them. Equally absurd is the depiction of Huawei Founder-CEO Ren Zhengfeiâwho modeled his company on Silicon Valley and whose father was cashiered as a âcapitalist roaderâ in the Chinese cultural revolutionâas some dutiful apparatchik. Or the notion that Huawei is an elaborately mounted Trojan Horse for communist hackers and spies. In Barcelona, it developed that this wonderful company which the United States tried and failed to terminate, is poised to lead the world in Carbon Age communications. Huawei has patented a graphene transistor and contrived an eight-inch graphene wafer to carry potential trillions of them. One transistor does not a microchip make. Years of work lie ahead before such devices come to market. It is even possible that when (if) the graphene microchip comes it will come from another company or country, quite possibly from Jim Tourâs laboratory in Houston. Still, Huaweiâs breakthrough is deeply impressive. Because graphene is a supreme conductor of both heat and electricity, graphene transistors may operate at 10 times, or more, the speed of silicon devices, using perhaps less than a tenth of the power. Here is the potential to turn the entire history of the semiconductor industry inside out and upside down. Silicon triumphed via âlow and slow.â Because of siliconâs unique properties, low-power, relatively low-frequency silicon transistors could be jammed closer and closer together without burning up. Instead of fewer transistors running fast and hot, we would multiply transistors exponentially but run them slow and cool. Low and slow launched the Silicon Era and changed the world. Graphene transistors will stick with âlowâ because graphene conducts electrons with minimal resistance and graphene transistors need far less power than silicon to switch on and off. But they will be slow no longer, switching at least an order of magnitude faster than silicon. And as a âtwo dimensionalâ (i.e., one atom thick) material graphene circuits could function with only atomic distances between them. [Learn how to predict the future of technology with our âparadigmsâ]( Technology is always evolving. Nobody knows what direction it might go until itâs already here. But what if you had a roadmap that has accurately predicted the future of technology for more than 40 years? My flagship service Technology Report has been guiding my subscribers through the technology market for years now. If you want to learn more about investing in technology companies, [click here now.]( If they prove to be manufacturable economically and at large scale, graphene chipsâremember there is no such thing yetâcould relegate silicon to a role as substrate or low-end material. The world would be better off for faster, cheaper, less energy consuming computation. Not better off would be silicon chip makers, including great American companies such as Nvidia, Intel, AMD, Qualcomm and Apple, still the worldâs leaders yet quite likely lagging Huawei on the path to the Carbon Age. It is not just the chip makers that would be challenged. Chips are delivered to your laptop, iPhone, automobile and automated factory courtesy of a global ecosystem, spanning thousands of companies working together across Asia, Europe and America. That is until the China Hawks decided to make destroying that global cooperation their lifeâs work. Consider Hollandâs ASML, today a gating factor in the silicon ecosystem, as much as Taiwan Semiconductor which actually manufactures the chips created by the paramount U.S. companies.  ASML is the worldâs leaderâtruly there is no company even in second place, or third--in the lithographic technology used to etch micro-circuits, now in thicknesses countable in dozens of atoms. To do this, it must cut lines narrower than the wavelengths of the lasers that do the job. Imagine doing the New York Times crossword with an extra-wide Sharpie and you have the idea. The current generation ASML technology, called extreme ultraviolet lithography (EUV), uses light with a wavelength of 13 nanometer. Its competitors are stuck a full generation behind using wavelengths more than 10 times as big. ASML has tons of patent protection, but barely needs it. The process of building one of its advanced machines is so complex and entails so much process expertise that ASML could publish an instruction manual on the Internet without fear. By the time any competitor built a machine, ASML would be delivering its next generation. No chip maker can manufacture any of the last several microchip generationsâthe so-called 7nm, 5nm, or now 3nm generationsâwithout ASMLâs EUV. This gave the China hawks a wonderful idea. Forbid the Chinese from buying ASML machines and they wonât be able to make any cool chips. They will be dead in the water. Yay!!!!! Just like that, WE WIN!!!! We donât even have to invent anything new. Who needs innovation when you have politicians. The slight challenges were that ASML is a Dutch company and some 30% of its revenues were coming from China. What would happen to Apple, or Microsoft, or Google, or Qualcomm, if permanently deprived of 30% of their markets overnight? We canât imagine the arm-twisting the U.S. government applied, but it must have been impressive because, regrettably, ASML and the Dutch caved. Nonetheless, if the graphene transistor becomes a commercial reality, no one may need ASML. [Will This Simple Tool Dominate the 2023 Markets?]( Your trading becomes more efficient when you know where to look. [Join us Live in this Free Class]( and learn how to transform the way you trade, protect your capital, and find better trading opportunities. In the coming Carbon Age of nano-scale devices, contrasting to the entire history of humans making things, machines will be made not from the top down by cutting or slicing, sharpening or pounding, pressuring or melting the larger into the smaller, but by building from the bottom up, even atom by atom. Graphene transistors will not be etched, they will be grown. Growing them close enough together and in a functional alignment to produce a working micro-chip is just one of the problems on the path to a solution. But when it is solved, the answer may not involve cutting, or etching, or ASML. Chinaâs answer to the U.S. blocking its access to ASML machines may be to make ASML obsolete, which is, you know, even worse than losing 30% of your revenue. We canât know yet whether Huawei or any Chinese company will deliver the graphene chip. But if they do, at what price and for what concessions will the CCP allow them to be sold to the United States? How much groveling will it take? And if the Chinese, remembering ASML, just say no, will that be enough to make the deep state regret its wanton disruption of global supply chains. With its profound engagement in the worldwide capitalist high-tech fabric of standards and systems, Huawei represented a major obstacle to the CCPâs xenophobic dreams of self-sufficiency. U.S. protectionism is a supreme asset of the Communist world vision, enabler of Xi Jinpingâs worst instincts, and a threat to the future of U.S. leadership as serious as our own âEmergency Socialism.â Sincerely,
[The Editors]
George Gilder, Richard Vigilante, Steve Waite, and John Schroeter
Editors, Gilder's Guideposts, Technology Report, Technology Report Pro, Moonshots, and Private Reserve About George Gilder: [George Gilder]George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives. He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance. George and his team are the editors of Gilder Technology Report, Gilder Technology Report Pro, Moonshots and Private Reserve. To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to George Gilder's Guideposts. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances. Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company
122 C Street NW, Suite 515 | Washington, D.C. 20001 [Link](