The Chinese government has made semiconductors a key pillar of its so-called Made In China 2025 plan, an initiative to boost the production of higher value products. China aims to produce 70% of the semiconductors it uses by 2025, and that drive is backed by billions of dollars of investment by the government.
On top of that, the U.S. has recently threatened key Chinese technology firms like Huawei with being cut off from American products, so that’s sharpened Beijing’s focus on cultivating its domestic chip industry, analysts have told CNBC.
Analyst firm China Renaissance estimates that SMIC is about 17 quarters behind TSMC when it comes to 14nm and 16nm chips.
If Chinese foundries are not able to manufacture the latest chip sizes, that means companies like Huawei, which design their own chips, have to go to rivals. For example, Huawei’s “Kirin” series of processors for its smartphones have a 7nm design and are manufactured by TSCM.
Currently, only 16% of the semiconductors used in China are produced in the country, and only half of those are made by Chinese firms, according to a report by the Center for Strategic and International Studies. There are signs, however, that the ratio could change.
China’s semiconductor production capacity is growing at the fastest in the world, according to industry body SEMI.
Still, experts have told CNBC that China won’t close the gap with other countries for at least a decade.
https://www.cnbc.com/2019/08/06/smic-chinas-biggest-chipmaker-is-still-years-behind-its-rivals.html
If something would happen to Taiwan we have a problem.
If the Chinese want a certain technology, they will pursue it at all costs. But there may be a hitch: