2025年VITA技术产业状况-春季版

2025 State of the VITA Technology Industry June 2025 www.VITA.com Disclaimer: The views expressed here are solely those of the author in hisprivate capacity and do not in any way represent the views of VITA. Stateof the VITA Technology IndustryJune2025 by: Ray Alderman, Chairman of the Board, VITA This report provides the reader with updates on the state of the VITA Technologyindustry in particular and of the board and system industry in general, from theperspective of Ray Alderman, the Chairman of the Board of VITA. VITA is the tradeassociation dedicated to fostering American National Standards Institute (ANSI)accredited, open system architectures in critical embedded system applications.The complete series of reports can be found atMarket Reports. (www.VITA.com/VITA_Technology_Industry) Introduction Contents In a world marked by punitive tariffs, mergers, and the ongoing tug-of-warbetween policy and law in government, economic conditions and leadershipchanges are shaping our global landscape. Amidst these challenges, naturalphenomena continue to unfold: volcanoes erupt, polar ice caps melt, and glaciersbreak apart, crashing into Swiss villages. The Milky Way Galaxy races towards acollision with the Andromeda Galaxy at a staggering 60 miles per second, whilegravitational forces threaten to hurl Earth away from the Sun into the void ofspace. Additionally, artificial intelligence is poised to drastically reduce Earth'spopulation to just 100 million people. Despite these dramatic events, rest assuredthat no animals were harmed during the creation of this report. Introduction.......1Economic Conditions...1Military..........4Technology........6Mergers and Acquisitions10Summary........10 Economic Conditions U.S. GDP declined by 0.3% in Q1-2025 due to reduced government spending andincreased imports (which are subtracted from GDP numbers), and all the newtariff threats.1U.S. inflation declined to 2.1% in April, coming close to the FederalReserve’s target of 2%, but the Fed is not ready to reduce interest rates just yet(the rate is presently 4.5%). Tariffs on imports could drive inflation back up in thenext few months. In Europe, they muddled along with 0.3% GDP growth in Q1-2025, with 2.4%inflation. Most EU countries have seen lackluster growth for a while (especiallyGermany). The proposed tariffs could drive down their exports and push theirGDP into decline. The U.S. is Europe's largest trading partner, taking in about 21% of all EU exports. The top imports from the EU are pharmaceuticals, automobiles, machinery, and aircraft. Germany istaking the biggest hit from the tariffs, followed by Ireland, Italy, and France.2 Alongside the trade war with the EU, U.S. policy is finally going after Europe for trotting-out obscure internet data lawsand levying massive fines against U.S. tech companies for frivolous and ambiguous infractions.3The EU just slappedApple with a 500 million Euro fine, and Meta with a 200 million Euro fine. Generally speaking, the EU leadership doesnot understand how the internet works and what it can do (technically, economically, or culturally), or they wouldhave funded development of their own versions of Google, Meta, Amazon, Netflix, and Apple (the companies theyfine frequently). The valuation of these 5 companies is larger than all the companies listed on the EU stock exchangecombined. If the EU fines a U.S. tech company for something in the future, the administration could just raise tariffs ontheir products coming into the U.S. and get the money back. The EU has over 1,000 AI (Artificial Intelligence) projects underway, but they are small, focused projects (except forMistral in France). Europe has a lot of smart people, but the possibilities of what they can do are restricted by theirunreliable supply of energy and lack of adequate sites for data centers.4The U.S. is building massive AI data centersthat use 25K, 50K, 100K, 250K, 500K, and 1 million GPUs, that need megawatts of power. Europe’s power grid hasproblems as exhibited by the recent power outages in Spain, Portugal, and parts of France. We will dig deeper into AIin the technology section. China grew at 5.4% in Q1 (if you believe the numbers) with inflation at 0.3%. Again, the tariffs could seriously damageChina’s exports and significantly reduce their GDP in the coming months. 15% of China’s exports come to the U.S. The U.S. has 4.23% of the world’s population but consumes 33% of the world's resources according to the latest figures.So, other countries take advantage of our low tariffs while levying high tariffs against imported U.S. products (protectingtheir inefficient local industries from competition). The present administration is threatening to significantly raisetariffs on imports from Europe and China to level the playing field and reduce the U.S. trade deficit. The EU abolishedtariffs on certain goods between member countries, back in 1968 so they must extract money from the U.S. to keeptheir game going.