Beijing authorities are speeding up the development of “Chinese chips”. Bloomberg reports that China is preparing a sweeping new set of policies that will see it spend 9.5 trillion yuan ($1.4 trillion) to develop its semiconductor industry by 2025, in response to the Trump administration’s restrictions. The priority of this task is “like building an atomic bomb,” Bloomberg said, citing sources with knowledge of the matter.
Bloomberg cites sources with knowledge of the matter: China’s top leaders will meet in October to formulate an economic strategy for the next five years to develop the third-generation semiconductor industry and provide support for research, education and financing, which is included in the 14th Five-Year Plan for National Economic and Social Development of the People’s Republic of China.
Third-generation semiconductors are chipsets made of silicon carbide (SiC) and gallium nitride (GaN), which have higher performance and power advantages than first-generation semiconductor materials and are widely used in 5G communications, military radar and electric vehicles.
Bloomberg reports that China imports more than $300 billion worth of integrated circuits each year, and that Chinese semiconductor developers rely on U.S.-made chip design tools and patents, as well as key manufacturing technologies from U.S. allies. However, as U.S.-China relations deteriorate, it has become increasingly difficult for Chinese companies to obtain components and chip-making technology from overseas. Huawei’s inability to get chips from companies like TSMC starting Sept. 15 has increased the urgency for China to create its own alternatives.
Recent Comments