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China's Microchip Independence 📱

Links 🔗

- China a step closer to microchip independence

- Intel: Sorry, But Our 7nm Chips Will Be Delayed to 2022, 2023

- The US May Make It Illegal for TSMC to Sell Parts to Huawei

China has recently made new breakthroughs in the fabrication of 7nm process chips, pushing forward its homegrown chip development and reducing reliance on foreign production 🚀

Why is China accelerating microchip independence?

  • US enforcing trade restrictions and pressuring tech manufacturing companies like TSMC to stop selling components to Chinese firms like Huawei.
  • Hence, China’s latest five-year plan has outlined a need to build an entire microchip supply chain, breaking free from their dependence on US technologies.

    Why is microchip independence important?

    • Most companies in the semiconductor sector all around the world, including US, has transitioned to a “fabless” business model, meaning the companies only develop the semiconductors, but the manufacturing is done by manufacturers who can afford the costly fabrication facilities (“fabs”).
    • Developing the technology for 7nm chip fabrication allows China to not only break free from US trade sanctions, but formidably compete in the microelectronics race.
    • Not to mention, China is also the world’s largest semiconductor market.
    • The timing couldn’t be better for China, as Intel announced that they botched the mass manufacturing of their new family of chips and may exit the semiconductor manufacturing altogether.

    I find it ironic that the US trade restrictions has resulted in the exact opposite of its intention of hindering China. Yet, it ramped up China’s domestic research, development and production, hurting the US in the long-run 🤷‍♂️

    This series is brought to you by Lee Way (@leewaylau). He will be writing about political, societal, history, movies and music on What's Up Wednesday.

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