Only 35% of semiconductor equipment in China is local, but Beijing promises a response to tough US sanctions. What comes now?
China’s semiconductor development faces more obstacles after Washington introduced new measures restricting the export of 24 types of chipmaking equipment to the country and added 140 domestic chip-related entities to the US trade blacklist, according to analysts .
After China decided to ban the export of several rare minerals to the US, Beijing may intensify retaliatory measures by restricting the export of chemical products and carrying out safety reviews of some American companies, analysts warn.
“The latest U.S. restrictions will certainly stifle China’s semiconductor development, which will result in a shortage of supplies in the near term,” said Chen Li, an analyst at Beijing-based public policy consultancy Anbound, adding that the shortage should ease in three to five years.
Chen estimated that only 35% of semiconductor manufacturing equipment currently used in China is manufactured locally, but that could reach 50% next year.
The latest restrictions affect 24 types of equipment for recording, wafer cleaning, ion implantation, inspection and metrology – areas in which China remains largely dependent on imports. High-bandwidth memory, a vital component for artificial intelligence (AI) chips, has also been targeted.
“The new export restrictions mainly target advanced node chips used in AI, high-performance computing and 5G telecommunications,” said Zhang Junya, senior analyst at LeadLeo, which specializes in technology, media and telecommunications. “In the field of advanced node chips, it is difficult for China to completely replace US technology in the short term,” he added.
With information from South China Morning Post*
Source: https://www.ocafezinho.com/2024/12/06/china-pode-driblar-as-sancoes-dos-eua-e-conquistar-a-guerra-dos-chips/
