U.S. sanctions launched by Donald Trump (and maintained by the Biden administration) are forcing Chinese industry to rely less and less on foreign technologies… and pushing it to accelerate on the design and manufacture of its own semi- drivers. This is highlighted by an article by The Register, based on the latest observations from the Semiconductor Industry Association (SIA). The industry body believes that the technological threat that the United States poses to China is intended to force it to regroup in the field of semiconductors. And in this case, the first effects of this pressure are already beginning to be felt: in total, the Chinese semiconductor industry sold 39.8 billion dollars worth of chips in 2020, an increase of 30, 6% compared to 2019 according to the SIA, which does not yet have complete data for the year 2021.
China is moving fast, very fast, on semiconductors
” All indications are that the rapid growth of semiconductor sales in China is set to continue, thanks in large part to the central government’s unwavering commitment and strong political support following the deterioration of US-China relations. », Analyzes the SIA. According to the Association, if China maintains this growth rate in the semiconductor market, it could overtake Europe and Japan as of next year in the ranks of chip-producing powers. The middle empire would then come dangerously close to the United States and South Korea.
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As often, China’s growth is partly explained by the enormous needs of its domestic market. Now, many Chinese companies are indeed reluctant to sign contracts with American firms. China can therefore count on sales made within its borders to boost its industry.
However, the Chinese industry still has a long way to go to compete with the biggest players in the technological field. While research is being undertaken on the side of Alibaba and Baidu to develop chips in 5 nm and 7 nm respectively, the market has already moved towards 4 nm and 3 nm engraving finenesses — or even 2 nm, a node that TSMC should offer at the end of 2022 according to some sources.
Another obstacle for China, it does not have a major foundry capable of competing with Intel, Samsung Foundry or TSMC. The main major Chinese foundry, SMIC, may have made significant progress in recent years, it is still too far behind its competitors to worry them.