"Sino-US Semiconductor Technology Competition: How to Break the Situation of Chinese Chips"
Semiconductors, the term is magical for the technological development of our time. It is not only the "brain" of electronic products, but also the key engine to promote the progress of human society. Globally, however, the battle for dominance of the semiconductor industry is intensifying, especially between the two largest economies, China and the United States.
"Big things are not good! Some Japanese media said that if China's chips persist until 2032, the market share of high-end chips will only be 2%", this article deeply analyzes the current grim situation faced by China's semiconductor industry. In terms of policy support, technology accumulation and industrial layout, there is a clear gap between China and the United States. This undoubtedly poses a huge challenge to China's scientific and technological strength and industrial competitiveness.
We have to face up to this reality and objectively examine the pain points of the development of China's semiconductor industry. At the same time, we need to think from a strategic perspective on how to make up for the shortcomings, reshape the competitive advantage of China's chip manufacturing industry, and ensure the national economic security and independent and controllable science and technology. Only in this way can China remain invincible in the fierce international competition for semiconductors.
1. The new pattern of semiconductor technology competition between China and the United States
(1) U.S. policies promote the rapid growth of semiconductor production capacity
The article points out that the U.S. government has greatly enhanced the competitiveness of the local semiconductor industry through the implementation of the "CHIPS Act". In the next few years, the United States is expected to reach 14% of the world's chip manufacturing capacity, of which advanced chips of 10nm and below account for 28%. The gradual emergence of this policy effect has undoubtedly cast a shadow on the development of China's semiconductor industry.
The U.S. government's financial support has not only accelerated domestic technological upgrades, but also attracted the world's leading chipmakers to set up factories in the United States. As typical examples, TSMC and Samsung have both set up new production lines in the United States, which means that cutting-edge 3nm and 2nm chip technology is moving to the United States. This undoubtedly poses a direct technical challenge to China.
At the same time, the United States has also passed export controls on China, especially restrictions on advanced chips and manufacturing equipment, which have also significantly affected China's competitiveness in the global high-end chip market. It can be said that the United States is further consolidating and expanding its dominant position in the global semiconductor industry through a multi-pronged strategy.
(2) China's semiconductor industry is facing severe challenges
In contrast, the development of China's semiconductor industry can be described as full of uncertainties. Although the Chinese government has invested more than US$142 billion in the semiconductor industry, it still faces significant obstacles to its development due to technological bottlenecks and the international political environment.
According to forecasts, China's chip manufacturing capacity may only remain at a low level of 2% by 2032, while the United States will control about 14% of the world's chip production capacity. In the higher-end sub-10nm chip market, China's disadvantage is even more obvious. This shows that China still needs to overcome major technical and capital barriers when catching up with and surpassing the global semiconductor technology frontier.
On the other hand, the U.S. export control policy has further weakened China's position in the global supply chain, affecting not only the production of chips, but also the related R&D and technology accumulation. This has undoubtedly increased the difficulty of the development of China's semiconductor industry.
To sum up, China is facing unprecedented challenges in this intensifying competition between China and the United States in semiconductor technology. How to make up for the gap and reshape the competitive advantage of China's chip manufacturing industry has become an urgent strategic task.
Second, the pain points of the development of China's semiconductor industry
(1) Technological innovation capabilities need to be improved urgently
Technological innovation is the fundamental driving force for the development of the semiconductor industry. However, at this point, there is a huge gap between China and the United States.
First, China has invested relatively little in basic research. According to relevant data, China's investment in basic research accounted for only 0.18% of GDP in 2019, while the United States reached 0.67%. This gap has a direct impact on the cultivation of original innovation capabilities.
Second, China is still lagging behind in high-end chip design and manufacturing processes. For example, in the case of sub-10nm advanced processes, China's current market share is only 6%, while the United States accounts for the vast majority. This technological gap makes it impossible for China to compete with the United States in the high-end market.
Thirdly, China lacks leading enterprises with strong independent R&D and innovation capabilities. At present, most of China's semiconductor companies rely on foreign key technologies and equipment, and it is difficult to occupy a dominant position in the global industrial chain. This not only restricts the further development of China's chip industry, but also increases its risks in the supply chain.
In general, the technological innovation capability of China's semiconductor industry needs to be further improved, which is the key to catching up and surpassing. Only by working basic research, high-end manufacturing, and independent innovation can China truly narrow the technological gap with the United States.
(2) The coordinated development of the industrial chain needs to be strengthened urgently
The semiconductor industry chain is long and highly correlated, which requires close cooperation between upstream and downstream enterprises. However, at present, there are still deficiencies in the coordinated development of China's semiconductor industry chain.
On the one hand, China relies on imports in areas such as key chip design and manufacturing equipment, resulting in a weak independent and controllable ability of the entire industrial chain. For example, in key equipment such as lithography machines, the technical level of Chinese enterprises is still difficult to compete with international giants. This not only increases costs, but also affects production efficiency and product quality.
On the other hand, the cooperation and resource integration between Chinese semiconductor companies are not close enough. Some key links, such as wafer foundry, packaging and testing, etc., need to be improved in the degree of collaboration between Chinese enterprises. This also restricts the collaborative innovation ability of the entire industrial chain.
In addition, China's semiconductor industry lacks leading enterprises with global influence. At present, most of the domestic enterprises are small in scale and have limited technical and financial strength, making it difficult to occupy a dominant position in the fierce international competition. This also makes the voice of China's semiconductor industry chain weaker.
3. Reshape the competitive advantage of China's chip manufacturing industry
(1) Continue to increase investment in basic research and consolidate the foundation for innovation
If China wants to catch up and surpass in the semiconductor field, the first task is to improve its independent innovation capabilities. This requires increasing investment in basic research to lay a solid foundation for future technological breakthroughs.
Specifically, China needs to significantly increase its investment in basic research and cultivate a large number of high-level scientific and technological talents. At the same time, it is also necessary to improve and improve the system and mechanism for basic research, so as to provide scientific research personnel with a good environment for innovation and long-term stable development space.
Only in this way can China achieve original breakthroughs in the field of cutting-edge semiconductor technology and narrow the gap with developed countries such as the United States. For example, in key fields such as materials science, device physics, and design technology, it is necessary to continue to cultivate a research team with international standards.
At the same time, China should also strengthen the transformation and application of basic research results to provide strong support for industrial development. Through the in-depth integration of industry, education and research, the innovative results of basic research will be quickly transformed into real productivity, injecting new vitality into China's chip manufacturing industry.
(2) Vigorously promote the coordinated development of the industrial chain and build an independent and controllable system
In terms of the coordinated development of the semiconductor industry chain, China also needs to take strong measures. This not only includes strengthening cooperation between upstream and downstream enterprises, but also needs to improve the independent and controllable system of the industrial chain.
First of all, China should accelerate the pace of independent innovation in key core technologies. Especially in the field of key equipment such as lithography machines and design tools, it is necessary to greatly increase R&D investment and cultivate a group of technical talents with international standards. At the same time, by encouraging mergers and acquisitions, we will promote the large-scale development of domestic enterprises and enhance their overall strength.
Second, China should strengthen the coordination and linkage between all links in the industrial chain. Through the establishment of a sound standard system, information sharing platform, etc., to promote the in-depth cooperation of upstream and downstream enterprises. At the same time, it is necessary to optimize the industrial layout, build a more complete industrial ecology, and enhance the overall competitiveness.
Third, China should actively carry out international cooperation and absorb outstanding resources from around the world. Through the introduction of foreign advanced technology, capital and talents, we will inject new development impetus into domestic enterprises. At the same time, it is also necessary to actively participate in the formulation of international rules and maintain China's position in the global semiconductor industry chain.
In short, promoting the coordinated development of the industrial chain and building an independent and controllable industrial system is the key to breaking through the bottleneck of China's semiconductor industry. Only by doing this well can we lay a solid foundation for the future development of China's chip manufacturing industry.
(3) Formulate strong policy support to enhance international competitiveness
Policy support is an important support for the development of China's semiconductor industry. In this regard, the Chinese government needs to formulate more powerful policies and measures to create a favorable environment for enterprises to develop.
First of all, it is necessary to further increase financial investment and inject strong impetus into China's semiconductor industry. More financial support can be provided for enterprises through R&D tax incentives, industrial fund support, etc. At the same time, it is also necessary to strengthen the coordination and cooperation of policies to ensure that various support measures are coordinated with each other to form a synergy.
Second, it is necessary to improve relevant laws and regulations to create a good legal environment for the healthy development of the semiconductor industry. For example, in terms of intellectual property protection and talent introduction, more detailed and complete policies and measures have been formulated. At the same time, it is also necessary to strengthen the macro-control of industrial development, guide enterprises to base themselves on the long-term, and continue to enhance their competitiveness.
Third, we should take the initiative to participate in the formulation of international rules and safeguard China's interests. In the current complex international political and economic environment, China needs to take a more active part in the construction of the global semiconductor governance system and shape international rules conducive to its own development.
In short, only through stronger policy support can China's semiconductor industry occupy a favorable position in the fierce international competition. This requires not only the vigorous promotion of the government, but also the unremitting efforts of the enterprises themselves. Only when the government and enterprises work together can the future of China's chip manufacturing industry be brighter.
epilogue
The semiconductor industry has never been the key to the country's scientific and technological strength and industrial competitiveness. In this fierce competition between the two largest economies of China and the United States, China is facing unprecedented challenges.
We must be soberly aware that there is a big gap between China's semiconductor industry and the United States in terms of technological innovation, industrial chain coordination and policy support. Only by starting from these fundamental issues, continuing to increase investment, and constantly improving the system, can China stand out in this scientific and technological competition.
It is believed that as long as we adhere to our strategic focus, promote breakthroughs in key core technologies, and build an independent and controllable industrial system, China's chip manufacturing industry will be able to rebuild its strong competitive advantage and grasp the leading position in the global semiconductor landscape. Let us work together to make unremitting efforts to achieve the take-off of China's semiconductor industry!