Chip Wars Heat Up: China’S Last-Minute Scramble For U.S. Tech
Date
12/30/2024 3:21:23 PM
(MENAFN- The Rio Times) Chinese Semiconductor firms are racing against the clock to secure advanced U.S. chip materials before potential new restrictions take effect in 2025.
This urgent stockpiling reflects the intensifying tech rivalry between the world's two largest economies. China's integrated circuit industry sales reached 1.2 trillion yuan ($164.4 billion) in 2023, growing 7.8% year-on-year.
Despite this growth, China still lags behind in cutting-edge chip manufacturing. The U.S. aims to maintain this gap, with the Biden administration's December 2024 export controls targeting 140 Chinese entities.
Chinese companies are frantically ordering chemical-mechanical polishing pads, high-quality filters, and specialized containers from U.S. suppliers like DuPont and Entegris.
These materials are crucial for both current production and future technological advancements. The stakes are high. Semiconductors power everything from smartphones to military systems.
Control over this technology translates to economic and geopolitical power. The U.S. fears China could use advanced chips to enhance its military capabilities and AI technologies.
A High-Stakes Tech Race
China isn't standing idle. It's investing heavily in domestic alternatives, aiming to increase its semiconductor material self-sufficiency from 15% to 30% by 2025.
This would mean boosting domestic production from approximately 180 billion yuan ($24.7 billion) to 360 billion yuan ($50 billion). However, U.S. materials still outperform local options in quality and stability.
This tech race has global implications. The U.S. is pressuring allies to limit chip exports to China, while Beijing is tightening control over rare earth elements crucial for chip production.
China imported semiconductor and related equipment worth 310 billion yuan ($42.5 billion) from the U.S. in 2023, a 15% decrease from the previous year. As the new year approaches, the outcome of this high-stakes game remains uncertain.
What's clear is that the global tech landscape is being reshaped, with far-reaching consequences for innovation, economic competitiveness, and national security.
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