Can China establish leadership in semiconductor sector?

China imported more semiconductor chips than oil for the first time in 2013. According to BCG, China imported US$350 billion worth of semiconductor chips in 2020, which represented about 60% of the global semiconductor market. The amount was twice as much as China’s oil imports. Self-sufficiency therefore has become the most critical part of China’s national development strategies. Backed by strong state support, YMTC raised its goal of attaining a 3-4% share of the global market in 2022 to 7%. SMIC also has plans to build four new fabs. However, there have been reports that Chinese corporations including YMTC and SMIC are having difficulty acquiring production equipment from abroad. The US has China’s semiconductor sector in a stranglehold amid intensifying conflicts. Uncertainties are lying ahead for China’s semiconductor industry.

SOURCE: Digi-times ASIA