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China's chip industry able to withstand sanction attacks

China Daily | Updated: 2024-12-06 08:06
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An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. [Photo/Agencies]

The United States' suppression of China's advanced chip industry has to some extent affected its catch-up in the sector. But that has greatly prompted the country to consolidate its foundation in the low- and middle-end chip industry and improve its overall competitiveness in related markets. China is using everything it can to do its own thing well.

China's semiconductor exports in the first 10 months this year reached a value of 931.17 billion yuan ($128.18 billion), an increase of 21.4 percent year-on-year.

In other words, the US' sanctions over the past five years have not prevented the continued development and growth of China's chip industry, especially in the middle- and low-end semiconductor sectors.

The US government has continuously "patched" holes in its suppressive policies targeting China's advanced semiconductor industry over the past five years. But the marginal effect of these sanctions is decreasing.

The global chip market does not have a large demand for advanced chips, though they are important. Over the past decade, the biggest driving force for the growth of the global semiconductor industry has come from smartphones and personal computers. Now, the demand driving the industry is from the automotive and industrial fields, and their requirement is for reliability, not high computing speed.

The US strategic community, represented by some think tanks, has noticed a phenomenon that the development of Chinese chip companies has accelerated and they have consolidated their position in the low- and middle-end chip market amid Washington's crackdown, while US companies have lost their competitiveness.

US companies that specialize in one link in the industry chain and occupy a key position are becoming more and more determined to oppose the US' continued attacks on the Chinese chip industry which affects their access to the Chinese market. Therefore, many US chip companies have made it clear that they will not give up the Chinese market but will expand their business in China.

Therefore, the US strategy of blocking China from top to bottom in all links of high-end chips is failing. It had only succeeded in proving that the trend of economic globalization cannot be reversed.

CHINA MEDIA GROUP

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