An inside look at the US-China chipmaking war

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A recently released in-depth feature of Nikkei Asia provides a detailed look at the current state of the conflict between China and the United States in the chipmaking, semiconductor manufacturing, and computer technology sectors as a whole. One of the many key points the article presents is the pervasive reality that if China is successful, it will no longer depend on the United States for many of its IT needs, which will have serious consequences for both countries.

The feature highlights that US-based companies control many areas of computer technology, such as central processing unit (CPU) design, in which giants including AMD and Intel control over 90% of the global market. In the areas of wafer inspection, ion implantation, etching, and many other areas, US companies manage 80% of the market’s business. These numbers illustrate that when it comes to chip manufacturing, the United States maintains a sort of monopoly in many important areas.

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This fact has gone wrong with China, especially in recent years, as the United States has continually sanctioned rival country’s tech companies, making it increasingly dangerous for China to rely on based companies. in the United States for its computing needs. At any time, a sanction could disrupt supply chains and leave all power in the hands of the United States, which is an untenable position that China is trying to evade.

As such, China is focused on creating competitors for all foreign companies, currently preventing it from being self-sufficient. For every integrated circuit design company in the world, including NVIDIA, Qualcomm, and Arm, China is positioning its own Goodix, UNISOC, and Will Semiconductor Co. Options Samsung and Micron with its own Yangtze, Hua Hong, and SMIC memory technologies.

Regardless of the sector, China is striving to become self-sufficient, and as tensions rise between China and the United States, localization efforts in the country will intensify. However, the two countries are still closely linked, so it remains to be seen how far this decoupling effort can go.



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