While the impact of the new crown epidemic on the economy has stretched China’s finances, the 100 billion fund aimed at supporting China’s chip industry has had little effect, which has aroused doubts from China’s top leaders. According to the analysis, under the continuous consolidation of the United States’ chip technology blockade alliance against China, China will continue to spend money helplessly, but it will be difficult to become a semiconductor technology power.
China seems to want to change its huge subsidy strategy represented by the “big fund”, but its alternative approach may continue to violate the national guiding line of market economy principles. Bloomberg reported that the Chinese government will instead put pressure on domestic semiconductor material suppliers, asking them to cut prices in order to reduce the production costs of Chinese semiconductor manufacturers.Scott Lincicome, director of economic and trade policy research at the Cato Institute, said it is difficult to predict whether China will change its investment route in the chip industry.
“China’s (semiconductor) industry has indeed been very dependent on the US, the Netherlands and other European regions, as well as Japan and South Korea, in terms of materials, equipment and talent. The money spent over the years to build national champions has not been successful,” he said. , coupled with serious problems of corruption and embezzlement in China’s semiconductor industry, and several well-publicized failures by certain semiconductor companies, there is a reason why China may be reconsidering this (national investment) approach.”
Analysis: China’s “independent” chip dream is as difficult as reaching the sky
The latest round of sanctions imposed by the United States in October last year blocked China’s access to high-end chips in the fields of artificial intelligence and supercomputing. At the same time, it restricted the export of chip manufacturing equipment to China, making it difficult for China to import advanced chips and chip manufacturing. tools, and also face technology and component trade controls in the development and manufacture of chip equipment.
Although China sketched out the dream of self-sufficiency and the establishment of a domestic closed-loop semiconductor industry ecology long before the US sanctions. However, analysts generally believe that advanced chip design and manufacturing is the “most complicated” process in human history, and China’s “chip dream” is difficult to realize.“In a way, China has put the Self-isolation from participating in these global chains (whether it is self-blaming, relentless efforts to steal foreign intellectual property and leading semiconductor technology), China found it extremely difficult to take the lead in the global semiconductor industry.”