In recent years, the global chip industry has changed, and the United States has continuously adopted sanctions and suppression measures to try to curb China's rise in the semiconductor field. However, these measures did not bring China to its knees, but inspired our determination to develop in the chip field.
The United States has taken various measures, not only to sanction and suppress China, but also to unite allies to upgrade the chip ban. In this case, China's semiconductor industry has been seriously hit, especially for companies like Huawei, whose once peak status was once destroyed. Aware of China's dependence on foreign technology in the semiconductor sector, the United States has repeatedly introduced restrictive policies in an effort to prevent China from acquiring high-end chip technology.
The United States has also introduced protectionist policies through legislation and other means to limit China's access to high-end chips. At the same time, they have also gathered a series of chips to encircle allies in an attempt to expand the threat and risk of China's industrial upgrading.
China did not sit still, but acted. SMIC took the lead in investing in a 28nm wafer fab in Tianjin, with an investment of US$7.5 billion. This is just the beginning, and China plans to continue investing in factories elsewhere in the country to ensure a steady supply of domestic chips.
China's counterattack is escalating. China has gradually reduced its imports of foreign chips, and foreign chip companies are facing the loss of the Chinese market and the overall challenge from Chinese competitors. With the continuous expansion of China's manufacturing capacity, the price of chips will be suppressed, and the original monopoly pattern will be broken.
Tensions between Chinese and American chip companies are also escalating, and when China succeeds in the low-end chip field, the American chip giants feel greater competitive pressure. They previously restricted the export of high-end chips, but now the low-end chip market has also been hit. In the end, the relationship between Chinese and American chip companies deteriorated, and American chip companies threatened to completely interrupt chip exports to China.