softbank doubles down on us amid supply chain shifts

2025-05-27 general

Washington, Tuesday, 27 May 2025.
Despite the CHIPS Act-driven reshaping of global supply chains, SoftBank is significantly investing in the United States. Masayoshi Son reportedly discussed a $300 billion joint fund with the U.S. Treasury Secretary. This move signals confidence in the American market’s long-term prospects. The investment occurs amidst geopolitical shifts and supply chain realignments. This also has implications for key Asian allies like Japan. The U.S. aims to bolster its domestic semiconductor industry and reduce reliance on foreign suppliers.

investment strategy

Son’s strategy involves high leverage and sovereign backing, aiming to capitalize on the dollar liquidity and acquire technology and infrastructure assets [1]. This approach seeks to secure returns in key sectors like AI, semiconductors, and energy infrastructure, even with potential slowdowns in U.S. GDP growth [1]. The fund may allow public subscription, converting geopolitical risks into shared national interests [1]. This move aligns with the U.S. goal of reinforcing its technological dominance, providing a secure channel for Japanese capital to exit East Asian competition [1].

broader market implications

Global capital movements reflect anxieties about a potential ‘new cold war’ [1]. The U.S. is restructuring global supply chains using measures like the CHIPS Act [1]. SoftBank’s move indicates an attempt to gain a political shield via a sovereign fund [1]. The U.S. could leverage this to absorb excess Japanese liquidity and alleviate its debt burden [1]. Some analysts view this as ‘主动投靠比被动收割更有利’, with Son acting as a symbol of this capital migration [1].

long-term value proposition

Many question Son’s plan due to short-term return concerns, but it overlooks the long-term view of major investors [1]. Drawing from Warren Buffett’s value investing, the current U.S. recession is viewed as a temporary setback during technological evolution [1]. Long-term capital is needed for breakthroughs in AI computing, controlled nuclear fusion and quantum communication [1]. Sovereign funds can transcend economic cycles and secure influence over future technology standards [1].

strategic reorgs in china

In related news, strategic restructurings are occurring within China’s tech sector. Zhongke Shuguang and Haiguang Information announced a strategic reorganization to integrate the industry chain [4][5]. Zhongke Shuguang specializes in high-end computing, storage, and cloud computing [4][5]. Haiguang Information focuses on domestic architecture CPUs and DCUs [4][5]. This merger aims to optimize the industrial layout from chips to software and systems [4][5]. The goal is to enhance the technological and application synergy between high-end chips and computing systems [4][5].

domestic supply chain focus

The restructuring of Zhongke Shuguang and Haiguang Information is designed to promote the large-scale application of domestic chips in key sectors [4][5]. These sectors include government affairs, finance, communications, and energy [4][5]. Experts suggest this realignment aligns with the global trend of extending industrial chains [4][5]. The move is expected to foster competitive innovation, capitalize on information industry trends, and boost domestic computing power [4][5].

implications of mergers

State-owned enterprises are expected to lead a new wave of mergers and acquisitions, driven by policy support and industrial transformation [6]. These mergers aim to optimize resource allocation and promote valuation repair [6]. For example, China Rare Earth is actively working with China Rare Earth Group to resolve competition issues and is considering mergers [6]. Separately, the “two ships” merger is progressing, with China Shipbuilding planning to absorb China Heavy Industry through a share swap [6].

Bronnen

CHIPS Act Supply Chains