“It is very transparent that Xi Jinping is asking for a national source chain [of microprocessors]. As a result, the economic rules, competitive merit and power of the source chain have been fundamentally overtaken,” said Jimmy Goodrich, the association’s vice president of global policy. New York told Times. La semiconductor industry (AIS), which represents U. S. chip manufacturers. But it’s not the first time
Microprocessor or PC chip technologies form the basis of all electronic products, but Chinese corporations do not dominate them enough. Many of these portions have been developed through foreign vendors, especially Americans such as Qualcomm, Intel or even Nvidia. During an industry war with the United States, this market scenario turned out to be a slippery slope for China. U. S. restrictions resulted in Beijing’s early emancipation of U. S. technology. This summer, Huawei feared running out of chips, not for no reason. Chinese corporations are said to be at least 4 years market-leading and measures are lately insufficient.
In the category
Therefore, Beijing has brought tax exemptions, adding a 10-year corporate tax exemption and some other exemption from imports of materials. In addition, a state fund has been supporting start-ups and indexed corporations since 2014. The purpose is to inspire engineers to abandon video game or application deployment projects in favor of microprocessors, these measures are part of an ambitious purpose: to produce 70% of the chips used in the country, without respecting the precedent of this type, set at 40% by 2020. at US bank Morgan Stanley estimate that this goal will be achieved by 2025. Beijing continued its efforts and, in July 2020, supported the board of shares of Semiconductor Manufacturing International Corporation (SMIC), a state-accused company, United to Use Civil Technologies for military purposes – on the Shanghai Stock Exchange. Chinese company A.
Because of this situation, Young Liu left Foxconn last year to establish a Shenzhen company specializing in chip sheets and adhesives. “Before that, you might have to ask your grandfather and ask your grandmother for money. Today you have conversations to have,” and everyone expects the assignment to start as soon as possible,” said the new entrepreneur who raised $5 million. Your get starteded-up lately employs 36 other people and mass production is expected to begin next year. The employer does not deny that he is motivated by a patriotic target. The online page includes references to Mao Zedong commandos that led to the production of China’s first atomic bomb, the first ballistic missile and satellite. It asserts that these values do not adversely affect your work. , your service to the visitor or your competitiveness.
Young Liu acknowledges that the valuation of some microprocessor startups suggests an irrationality of the market. “You have to pile up, whether it’s equipment, skills or factories, right?” he asks. He says, “If you or the other is not, someone else will end up using it. “I think that would possibly be the logic of the government. “China Economic Weekly, a media corporation affiliated with the communist party’s official newscast according to, also points to a policy that creates inconsistencies: “There were astonishing absurdities that challenged logic and common sense. According to an analyst at China Economic Weekly, between January and October 2020, 58,000 microprocessor corporations were founded, equivalent to two hundred constants a day. new technologies, but that possibly soon will be.
These massive numbers lead to unproductive situations. In the east of the country, in the town of Huai’an, China’s public central television station visited one of these new factories. Dozens of machines are inactive on site while others are still covered in plastic. And it’s not the only assignment. In December 2020, the state-backed conglomerate Tsinghua Unigroup warned that it was unlikely to meet its $2. 5 billion external commitments. Jay Goldberg, a representative of the generation industry that passed through Qualcomm, believes there is a stopover: China is going up there. At the same time, he states that “the result he is addressing is unclear. “
However, it should not be forgotten that Xi Jinping’s strategy will lead to progress: two corporations, Yangtze Memory Technologies and ChangXin Memory Technologies, will soon be at the forefront of generating reminiscent chips. Chinese corporations also master logical chips that perform calculations. , among other things, all of this basically for the Chinese market. According to Randy Abrams, credit suisse’s generation analyst, some foreign corporations are involved in infringement of their intellectual property, which does not seem smart for foreign development.
But that’s not Beijing’s strategy. In an assembly last week, senior Communist Party officials recognized technological autonomy as one of the five pillars of economic development. If the independence of microprocessors is early and ambitious because long production lines want to be recreated, we will. you have not the speed and competition of Chinese development.
China has shown it can rack up past medals at the Olympics, send rovers to the moon, or even go from making plastic toys to making solar panels. It remains to be seen how those investments will be your returns.