China steps up quest for chip independence

With the increasingly fierce competition in the global semiconductor industry, China undoubtedly faces certain obstacles in developing its own autonomous chip manufacturing production capacity. At the same time, skepticism and pessimism are on the rise towards China’s semiconductor industry, but these external factors will not influence the country’s determination to acquire core technologies crucial for its development. long-term.

The Chinese version of Voice of America published an article on Monday titled “Flood of investment from the United States and South Korea could overwhelm China’s autonomous chip route,” claiming that the Covid-19 pandemic highlighting the strategic importance of the industrial chain for chips, the United States, South Korea and other countries have successively announced their intention to invest hundreds of billions of dollars in this area, which led China to retract to develop its own chipmaking industry amid fierce global competition.

In the context of South Korean President Moon Jae-in’s visit to the United States last week, the semiconductor manufacturing competition and cooperation between the two countries has drawn widespread attention. The Biden administration has sought tens of billions of dollars in funding to help US semiconductor manufacturing, while the South Korean government this month unveiled ambitious plans to spend around $ 450 billion to build the world’s largest chip manufacturing base by 2030.

In addition, the EU also plans to double its chip manufacturing output to 20% of the global market over the next decade by providing generous funding for technology investment.

In this context, the Chinese semiconductor industry will undoubtedly face greater challenges, especially as the United States pushes for technological decoupling between its allies and China.

But you don’t have to be too pessimistic about the outlook for China’s chip industry. Based on the development experience of other high-tech industries in China, such as aviation, although the overall technological strength of the domestic semiconductor industry chain is lower than that of developed countries, China is in able to overcome any difficulties if she decides to do so.

China is the world’s largest chip market, and in addition to the technological reason, another major reason its domestic manufacturing capacity cannot meet its demand is that the Chinese market used to trust to a globalized supply chain, which offers chips cheaper than in the domestic market. products. US sanctions against Huawei, ZTE and other Chinese tech companies have shown that the global supply chain is vulnerable to geopolitical conflicts.

Consensus has formed on the future trajectory of the Chinese semiconductor industry at the individual, corporate and macro levels, that is, focusing resources on accelerating the development of chips produced in the country.

Of course, the process will be difficult, with all kinds of issues that are extremely complicated and difficult to resolve in the short term.

However, as long as China makes its decision, it will not slacken its pace, and the policy of strengthening China’s chipmaking industry will not change. Because it is only through forward development that China and its industries can break the ceiling of industrial development constraints to meet their own needs.

About Dianne Stinson

Check Also

Singapore care platform Homage strives to meet demand for care as Asia ages

As Asian populations age, Tribute CEO Gillian Tee is expanding the digital platform’s pool of …

Leave a Reply

Your email address will not be published.