Is China’s chipmaking spree a cause for global concern?
China’s relentless pursuit of domestically produced chips is undeniable. Recently, it was disclosed that the government initiated the third phase of its ”Big Fund,” a financial initiative aimed at bolstering the local semiconductor industry. With a whopping $48 billion injection, the focus is on expanding microprocessor manufacturing. This substantial investment mirrors similar efforts from the US ($53 billion) and the EU ($49 billion) to promote the growth of their own chip production capabilities.
Chinese chip manufacturers are facing significant challenges. Following the US government’s restrictions in October 2022 on exporting advanced chips and chipmaking equipment to China, which are predominantly based on American intellectual property, Chinese companies are finding it extremely difficult to develop cutting-edge microprocessors with nanoscale transistors that power the latest AI technologies. Despite this obstacle, they continue to produce less sophisticated chips with larger transistor sizes, essential for various consumer electronics and appliances.
2024-06-06 07:57:40
Source: www.economist.com