US Sanctions Help China Supercharge Its Chipmaking Industry (bloomberg.com) 45
China's chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei to Hikvision spurred appetite for home-grown components. From a report: Nineteen of the world's 20 fastest-growing chip industry firms over the past four quarters, on average, hail from the world's No. 2 economy, according to data compiled by Bloomberg. That compared with just 8 at the same point last year. Those China-based suppliers of design software, processors and gear vital to chipmaking are expanding revenue at several times the likes of global leaders Taiwan Semiconductor Manufacturing Co. or ASML Holding NV.
That supercharged growth underscores how tensions between Washington and Beijing are transforming the global $550 billion semiconductor industry -- a sector that plays an outsized role in everything from defense to the advent of future technologies like AI and autonomous cars. In 2020, the US began restricting sales of American technology to companies like Semiconductor Manufacturing International Corp. and Hangzhou Hikvision Digital Technology, successfully containing their growth -- but also fueling a boom in Chinese chip-making and supply.
That supercharged growth underscores how tensions between Washington and Beijing are transforming the global $550 billion semiconductor industry -- a sector that plays an outsized role in everything from defense to the advent of future technologies like AI and autonomous cars. In 2020, the US began restricting sales of American technology to companies like Semiconductor Manufacturing International Corp. and Hangzhou Hikvision Digital Technology, successfully containing their growth -- but also fueling a boom in Chinese chip-making and supply.
Yay ... (Score:1, Insightful)
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Well the most senile US President in history continued the same anti-China policies. Just imagine what this is doing to the Russian chip fabrication industry as well now that they are unshackled from all IP restrictions. . .
Well hanks to your orange messenger from god the damage has already been done so Biden might as well keep the sanctions in place and try and use them as a bargaining chip to extract concessions from China.
P.S. The most senile president in US history was a Republican Alzheimer patient named Ronald Reagan.
Re: Yay ... (Score:2, Offtopic)
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Well the most senile US President in history
I know you're just trying to score political points, but can we try to be factually accurate? Reagan was literally suffering from early stages of dementia while he was still in office. It was kind of an open secret. His supporters tried to deny it, but everyone knew it was true. No one was surprised when he revealed the official diagnosis a few years later.
By all accounts, Biden is still very sharp and capable. You may not like his politics, but that's got nothing to do with it.
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China was already slowly moving towards domestic chip manufacturing, and domestic designs. The sanctions sped things up a lot.
I, for one, applaud our new Chinese chip makers... (Score:1)
With the ongoing chip shortage, maybe adding some more chip producers into the world and creating more chip making competition is actually a REALLY GOOD THING.
Maybe someday, I'll actually be able to find an 8GB Raspberry Pi 4 in stock. Or buy a new car at a reasonable price, with all the features that are currently being striped out due to lack of chips.
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With the ongoing chip shortage, maybe adding some more chip producers into the world and creating more chip making competition is actually a REALLY GOOD THING.
Maybe someday, I'll actually be able to find an 8GB Raspberry Pi 4 in stock. Or buy a new car at a reasonable price, with all the features that are currently being striped out due to lack of chips.
The problem with that idea is that if this asinine, and according to the orange moron, easily won trade war continues will be divided into two fundamentally completely incompatible tech-spheres, the Western one and the Chinese one and you are going to have to choose which of the two you want to live in.
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China was already slowly moving towards domestic chip manufacturing, and domestic designs. The sanctions sped things up a lot.
... and now they are moving towards domestic chip manufacturing, and domestic designs at the speed of sound ... thanks to the orange one. Your point?
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While true, he was the first to see Chinese government as an adversary rather than a friend, which is truly astounding seeing how much he openly admires dictators and wishes he could be a king like them. Still, a stopped clock is still right twice a day.
Decades of cozying up to the CCP have not done us any long-term favors, nor have they advanced the cause of freedom and democracy in China. Indeed I don't think you can blame Trump for the position we now find ourselves in with regards to technology indep
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I don't think it's a matter of when, despite the rhetoric by the CCP. They have to spout that stuff, it keeps their population whipped up with nationalism and other countries on edge. Maybe they even believe it themselves. But actually attacking - even if they succeed in the end it would be awful for both sides.
Ukraine successfully held off Russia's initial attack and have them drawn into a long and costly war, and they've been modernising and preparing for just 8 years, have no navy, little airforce and sh
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A lot of expert China watchers disagree. But we should all hope you're right and that the CCP and Xi act in a way that is rational.
But then again we expected Putin to be rational, and here we are. Likely the Russian invasion's incredible cost is probably giving Xi some pause. And China is already taking over large parts of the world economically using their belt and road initiative and with other methods including political lobbying and propaganda, expanding their influence over a wide area.
The Chinese m
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I do think China's influence, and indeed economy, are overstated by analysts and experts when taken in relation to the USA. A lot of their economy is smoke and mirrors, property debt, the kind of government prop up that would just vanish in the wind the moment they stop being able to prop it up. Plus, as a country, they are a lot more reliant on imports for food and energy than the US, and will be more dramatically effected by climate change. They are more dependent on the US and the global economy than Rus
Re:Yay ... (Score:5, Insightful)
he was the first to see Chinese government as an adversary rather than a friend
No he wasn't. China was never seen as an open friend by any US administration. Don't confuse the USA's economic relationship with China with "friendship". The economic program was always about an attempt to advance causes of freedom and democracy. The fact it didn't work ... notwithstanding.
The big problem with the USA was not it's relationship to China, but it's relationship to its own citizens. It's unfathomable to think a government policy could ever raise the cost of products or the cost of living in the USA, and as such every possible trade barrier has been reduced and every possible source of manufacturing has been shifted to a lowest cost alternative.
Don't confuse this local policy with friendship to China. All presidents have held them at arms length. The difference being past presidents were diplomatic (Obama rejecting the Group-of-Two coalition idea that floated around during his presidnecy) rather than acting like children (tariff everything, what do you mean illegal according to the WTO? Pull out of the WTO!)
The USA has local policy issues, not China policy issues.
A firm that goes from 5 employees (Score:2)
Regardless of whetever self-serving crap was going through Trumps mind at the time, the real effect of the chip bans was to keep China away from building critical western infrastructure and to prevent them from stealing the top tier of IC tech. Shrinking their industry wasnt really the goal.
Well, we either will or won't meet the challenge. (Score:2)
Bullshit (Score:5, Interesting)
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Re:China goes where ever there is profit (Score:2)
Xi has shown that control trumps profits if each butt heads.
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Xi has shown that control trumps profits if each butt heads.
Indeed, their ongoing,economy-devastating no-Covid-strategy clearly shows that another excuse to suppress dissent is more worth to Xi than a lot of missed profit.
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He also essentially killed some large Chinese corporations because he felt their CEO's were getting too power-hungry.
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It's hard to read Xi's mind, but it looks more like he saw power challenges, as some of the CEO's were mouthing off, Elon-style.
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This. Sanctions were never going to stop China from *cough* stealing *cough* I mean, making their own chips. The sanctions actually kicked the rest of the world in the ass saying "Unless you do something quickly, nobody BUT China is going to be making chips."
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China knows that if they invade Taiwan they may end up destroying plant production at TSMC for a long time...without TSMC, who builds in China? They will move to S.Korea and Samsung, GF and Qualcomm fabs...even Intel will be competitive for fabs of ARM chips.
At the same time they are looking for ways to avoid using the SWIFT payment system...Xi wants independence from the western world.
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Instead of starting a trade war, it would have been much better to invest in US tech to keep it ahead. Huawei getting to 5G years before everyone else and owning all the critical patents on it should have been a wake-up call.
Paywall, sue me bloomberg (Score:1)
China’s chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei Technologies Co. to Hikvision spurred appetite for home-grown components.
Nineteen of the world’s 20 fastest-growing chip industry firms over the past four quarters, on average, hail from the world’s No. 2 economy, according to data compiled by Bloomberg. That compared with just 8 at the same point last year. Those China-based suppliers of design software, processors an
It's the subsidies (Score:4, Insightful)
Sanctions on Russia make China look useful (Score:4, Insightful)
It's prudent to have a Plan B if you're vulnerable to what was done to Russia. I suppose Russia being willing to pay extra for what it has to have is an incentive for China to broaden its chip production.
ASML (Score:1)
It takes time, but entirely expected (Score:3)
The exact same thing has already happened with the Chinese space station and Beidou satnav system, to give two highly visible example.
In both cases, China was blocked from joining multinational efforts, the US banned China from joining the ISS in the 1990s, and Europe put in road blocks for technical participation even after China paid to join the Galileo effort, leading to China withdrawing from Galileo and started their own Beidou system. The result is the Chinese Tiangong space station while the ISS is going to retire soon, and the Beidou system now fully functional while Galileo is still nowhere to be seen.
While Americans often like to remind Europeans that the one state in the US is comparable to a country in Europe, so you should not compare the US to any single European country, but should compare with the whole Europe, similarly Americans should be reminded that China has a higher population than NA & EU combined, and also produces more STEM graduates than the whole of NA & EU. Give China 10-20 years, they can develop any tech they needed. The US tech sanction list is basically a to-do list for China, telling them exactly what tech they need to develop first.
So instead of comfortably making more profits for the US companies selling to China, all these sanctions did is to immediately reduce the profits they could have made, slowing their R&D, and then in the next 10-20 years face competition from Chinese companies after China developed their own. Lose-lose for US companies in both short term and long term. Only US politicians benefit by getting votes.
Re: It takes time, but entirely expected (Score:1)
Tech Freedom! (Score:1)
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