Some believe that due to the increasing Chinese demand and the increase in investment in semiconductors, a Chinese giant may be built at the global level in this field..
The United States has moved in its dispute with China from the field of trade and the imposition of customs tariffs to technology dispute.The latest episode in this conflict or technological war came to focus on semiconductor chips.It seems that Washington has seen in these chips that the major Chinese companies adopt on the outside, especially on the United States, the weak link by which the accelerated Chinese technological and industrial development can reinforce.
A large Chinese dependence on the outside
The Washington Post said last Saturday that the American authorities imposed restrictions on the export of technological products to the Chinese SMIC company that produces semiconductors.A document from the US Department of Commerce, published by the newspaper, stated that it is now that American companies must obtain special licenses from the authorities, in order to be able to export certain types of their products to SMIC.
Reuters had previously indicated that the Pentagon had suggested that SMIC be included in the blacklist.To date, more than 275 Chinese companies have been listed on the blacklist.This is strongly limited to its ability to buy high -tech equipment from the United States.
It is expected that China will import semiconductors of $ 300 billion this year for the third year in a row, despite the billions that were invested in local Chinese companies in order to possess technical knowledge in the semiconductor chips industry..
Giant companies such as Huawei and the Chinese electronics company come at the top of Beijing's efforts to alleviate their dependence on American technology by investing in advanced artificial intelligence chips, and programs design.However, the link with the United States, as said by Vice President of the Chinese Federation for the semiconductor industry, said, "The global economy is also impossible, and it is currently impossible despite the great progress that has happened locally.".
China was the source of most of the global growth in the semiconductor industry during the first half of this year, because it still imports semiconductors from the leaders of this adult industry, such as Micron and the American Maualcom.China has imported about 184 billion dollars in the first seven months of this year, which is 12% over the same period during the past year.
China has increased suddenly over the past years its investments in research and production, and the state -backed Tsinghua Company built a 22 billion dollar memory chips factory in Wuhan, while Huawei designed Processors for most of its cell phones made.The program developers also intervened after Washington banned the use of Huawei Electronics, automatic design tools from Kaden and Senopsis..The last company, whose programs are important for the development of Huawei to manufacture chips locally, stopped dealing with Huawei because of the decisions issued by the American administration.
Chinese government support and demands with American support
American decisions were demonstrated by depriving Chinese companies of semiconductor chips on the importance of China manufacturing the chips themselves, as the chips are the primary component in most technologies from 5G networks to cars, smartphones and information centers.Since the month of May, the Trump administration has focused on semiconductors in its campaign to control the Chinese technological rise, by preventing the shipment of any chips to Huawei, the largest Chinese company..
Huawei, which is also the largest mobile phone manufacturer, has lost since last September the possibility of buying chips, according to the American decisions that prohibit suppliers anywhere in the world to deal with the Chinese company if they were using American equipment to manufacture chips.These decisions highlighted the urgent necessity in building alternatives to local manufacturing in China.
Beijing is attending wide support for the so-called third generation of conductors during the next five years 2021-2025, and a set of procedures have been settled to support research, education and financing for industry to be added to the fourteenth five-year plan that will be presented to the country's leaders during the current month of October.
Bloomberg reported that China is betting that its companies could compete if it is a while in searching in this new field.Especially since the major companies in the United States and Japan have just started developing this activity, and some Chinese companies giant technology such as Sanan Electronics, and the state -owned company called China Group for Electronics Technology has created its way in the field of third -generation chips..These companies besides other companies in the sector, such as the International Company for the Manufacture of Semiconductors, and the Whale of the Limited Sections, which may benefit from the broad state support.. وSome believe that due to the increasing Chinese demand and the increase in investment in semiconductors, a Chinese giant may be built at the global level in this field..
The chips industry in the United States in return sees that there is a need for federal incentives to stop a long -term trend of moving to manufacture chips abroad, and the Federation of Industry says that while US production is receiving, China pumps funds in its local industry for semiconductors, and gives it the same degree of importance that gives it to build its abilityNuclear.This makes the manufacture of semi -conductors is a matter of national security.
The Federation of Industry believes that the new factories that will be built with the help of federal support will help to obtain the latest manufacturing technologies and sufficient production capacity to cover the demand for semiconductors by the defense and space industries..
The semiconductor union expects that only about 6% of the new production capacity that is being developed will settle in the United States, while China will host about 40% of this new energy during the next ten years to become the largest center for the manufacture of semiconductors in the world.
Republican Senator John Cornian, who sponsors his committee consisting of members of the Democratic and Republican parties calling for American legislation to increase government support for the industry..
The Federation of Industry's report goes until the localization of a factory in the United States is more than 30% more than it costs in South Korea and Singapore, and the factory resettlement in China may be 50% cheaper than the United States..The cost of building a semiconductor factory is $ 20 billion, and over a contract, it may cost about the construction of such a factory about $ 40 billion.Government incentives around the world reduce this cost by up to $ 13 billion.
Most of the incentives provided in the United States are presented by state governments that cannot compete against countries that have larger budgets.Some countries offer the land needed to create the project for free.Other countries exempt companies from real estate taxes and corporate taxes, or help buy equipment.