Trying China The domestic semiconductor industry intensifies as the United States increases pressure on the country’s tech giants.
But analysts They saidA: Beijing will face major challenges in boosting the domestic chip sector, and semiconductors are very important components of consumer electronics.
With the increasing number of devices becoming smart and connected to the Internet, they will become more important in new areas, such as cars, and accordingly, China wants to be a strong player in this field.
China faces a situation where its companies’ access to critical chip components may be disrupted, as well as the ability of domestic chipmakers to purchase technology to make semiconductors.
China cannot be a major technological power without semiconductors, and its technology companies, such as Huawei, may not be able to keep going if China does not have a great capacity to maintain and manufacture semiconductors.
The trade war revealed China’s dependence on foreign chips, the central role of the United States in the supply chain, and the complexity of this supply chain.
And earlier this year, Washington amended a rule requiring foreign manufacturers who use US chipmaking equipment to obtain a license before selling semiconductors to Huawei.
There is no indication that the United States will grant these licenses.
While Huawei, the largest smartphone maker in the world today, designs its chips through a subsidiary called (HiSilicon), these components are manufactured by the Taiwanese company (TSMC).
TSMC uses in this process chipmaking equipment made by American companies, so Huawei will be prevented from obtaining TSMC chips after September 15, and the Chinese company has very few options globally due to US sanctions.
The US government is also considering adding SMIC, the largest Chinese chip maker, to the blacklist known as the Entity List.
This limits US companies exporting the technology to the Chinese company, and SMIC may not be able to access the equipment it needs to make more advanced chips, as its technology is several years behind TSMC and Samsung.
The semiconductor industry has an extremely complex supply chain, and not only do the companies that make the chips, there are also design firms involved, as well as the companies that make the tools that enable manufacturing in the first place.
Taiwan and South Korea are at the forefront of industrialization, but when it comes to design tools, the United States dominates.
Meanwhile, the Dutch company (ASML) is building a machine that uses so-called ultraviolet (EUV) technology required to make advanced chips like those made by TSMC and Samsung.
Reuters reported earlier this year that the United States had pressured the Dutch government to stop selling the ASML machine to SMIC, and ASML said last month that it was awaiting an export license from the Dutch government to ship its devices to China.
The problem for China is its dependence on foreign equipment required for chip production, and with the increasing pressure of the United States on China’s technology sector, making the domestic chip industry on par with the United States will be a difficult task for China.
It is reported that China was not able to catch up even when it had unrestricted access to the leading tools and materials in the market, and without these tools China is very far behind.