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News
18
2017
-
03
China's semiconductor industry aims to challenge the leading position in chips by 2030
TSMC Chairman Morris Chang recently mentioned in an interview with The Wall Street Journal that the next wave of threats comes from mainland China. The New York Times also reported that the mainland is using pressure and money to heavily develop the wafer foundry industry, aiming to achieve world leadership by 2030.
TSMC Chairman Morris Chang recently mentioned in an interview with The Wall Street Journal that the next wave of threat comes from mainland China. The New York Times also reported that the mainland is using pressure and money to vigorously develop the wafer foundry industry, hoping to achieve world leadership by 2030.
According to the New York Times report, after developing smartphones, computers, and complex network devices, the mainland is doubling its efforts to design and build chips that support electronic products. Last year alone, it imported $232 billion worth of semiconductor products, surpassing oil.
The report says that to shorten the gap with industries in other countries, the Beijing authorities are heavily investing to gain experience from foreign chip companies. Experts further claim that the chip industry has become one of the main focuses of mainland China's espionage activities.
Mainland China, led by Vice Premier Ma Kai, has established a task force aiming to become the world leader in chip manufacturing by 2030. According to management consulting firm McKinsey & Company, this team includes four ministries and is expected to invest $170 billion in the semiconductor industry over the next 5 to 10 years.
The report quotes Daniel H. Rosen, founder of the New York-based Rhodium Group, stating, "The current situation is very clear; semiconductors and chips are especially urgent," particularly for the mainland, as complete reliance on imported high-end chips concerns the country's national security.
The incident involving former U.S. National Security Agency employee Edward J. Snowden has deepened the mainland's concerns. Recently, mainland China's antitrust investigation into Qualcomm, the leader in mobile communication chips, also reflects this.
The report points out that over the past 15 years, the mainland government has vigorously developed domestic chip manufacturers through subsidies, financing, and privileges. Shanghai's SMIC has even established bilingual schools and churches to attract talent from Taiwan. Although it still cannot compete on par with Intel, Samsung, and TSMC, SMIC has taken shape as a major semiconductor manufacturer in the mainland.
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