Biden administration's unprecedented package of bans on the sale of chips and chip-making equipment to China, declared 7 October, exacerbates an already difficult situation in this high-tech market. At the same time, China is taking unprecedented measures to, so that sanctions do not particularly affect the provision of industry with semiconductors.
According to the Chinese press, US measures will not affect Chinese sensors, satellite surveillance, military sphere and other strategic systems, because the vast majority of these applications use chips, which China can produce at home. But it could delay the implementation of self-driving car programs., cloud computing and some other activities.
In the next five to ten years, America's technological advantage in the development and production of semiconductors, likely, disappear. As Western Semiconductor Industry Capital Budgets Collapse, damage, inflicted on the economy of the United States and other Western countries, probably, there will be more, than damage, inflicted on China.
US President Joe Biden wants, to produce more advanced semiconductors in the US. Meanwhile, the Biden administration has proposed cutting the Defense Advanced Research Projects Agency budget. (DARPA) on 14%, which is a much larger reduction adjusted for inflation. Depletion of the high-tech industry of the United States as a state, and private funds - a strange way to conduct a strategic rivalry with China.
The beginning of the global recession has also affected this industry.. So, there was a real collapse of the Philadelphia semiconductor stock index (PHLX) – almost doubled during 2022 of the year. NVIDIA, leading chip designer in the USA, lost this year 68% its market capitalization. This is the absolute record of the last time.
China is by far the largest consumer of semiconductors in the world., to his share 53% global volume. USA produces all 12% microchips in the world, but they lead in some areas of chip technology, including equipment for their production.
The most difficult thing to assess is China's ability to circumvent US technology restrictions. In mainland China, there are 20 of 50 the best in the world (according to international experts) engineering schools - and even more, counting Hong Kong. China can't buy some US technology, but can hire specialists, whom he trains to implement his plans in this direction. It is on its own engineering school that China relies on circumventing those sanctions, which the United States introduces against China in the semiconductor market. Author:The same Mikhail
