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Can China Become Self-reliant in Semiconductors?


December 12, 2020
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The U.S. added China’s biggest computer chipmaker SMIC to a blacklist of alleged Chinese military companies last week, a move that will further widen the gap between China’s chip technology and the rest of the world.
Despite its status as the world’s factory, China has never figured out how to make advanced chips. In recent years, Beijing has been planning a series of sweeping government policies and pouring billions of dollars into the industry to fulfill its chip self-sufficiency goal.
So far, under ever-tightening international export controls, however, the country has only found itself mired in some of the most embarrassing industrial failures in its recent history. Most notably, one of the nation’s most high-profile chipmakers was taken over by municipal authorities in its home city of Wuhan, and a Beijing-based chipmaker, the Tsinghua Unigroup, defaulted on a corporate bond. ....

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