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Following concerns about cybersecurity China is pursuing the development of its own chipmaking capacity. Tsinghua Ungroup has the support of Chinese officials. It emerged as China's largest chipmaker with the acqusition of two large mobile chip firms in China- Spreadtrum Communications and RDA Microelectronics in 2013. Intel took a 20% stake in Tsinghua Unigroup for $1.5 billion as a way to enter the market serving the low end smartphone market with chips. Taiwan's Mediatek Inc. is its largest competitor. China's technology in mobile chips is still 2-3 years behind the latest technology, according to research firm Canalys, and serves mostly the low end smartphone market for emerging markets.Tsinghua Unigroup CEO, Zhao Weiguo, says that by investing in the long term like Huawei, his firm can catchup with larger companies in the field. China plans to use its chip fund to invest $1.6 billion in the company over the next 5 years. The company was started in 1988 at elite Tsinghua University, is still controlled by a university holding company, and has close ties with the government through its alumni network. Xi Jinping and other leaders graduated from the university. It is considering an acquisition of HP's H3C. H3C is a joint venture of 3Com and Huawei supplying corporate data networking gear in China, now part of HP. Tsinghua Unigroup is in its early stage of development as its estimated sales of $1.8 billion for 2015, make up a small part of the $340 billion global chip market, according to Gartner Research....

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Currency changes with a weaker dollar and growing international sales of notebooks helped HP increase sales in the PC business by 30%.

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The behavior of the US stock market is examined in this analysis in the WSJ. It shows that tech stocks that comprise a major part of the S&P 500 made a big surge in 2020 and 2021, dropping by 30% in 2022. Consumer discretionary stocks which also experienced an upsurge in 2020 and 2021 are facing headwinds from higher inflation and decline in demand. Retailers such as Target and Walmart are reducing inventories as demand shifts.