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China technology
TechTech War

With TSMC, ASML and Intel nowhere to be seen, China’s small semiconductor players take centre stage at industry expo

  • Small Chinese companies are getting all the attention at a semiconductor expo in Chongqing after trade restrictions have made them more appealing options
  • China’s domestic semiconductor industry has gotten a boost as the country scrambles for self-reliance in all parts of the industry supply chain

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A visitor views the exhibits during the 17th China International Semiconductor Expo in Shanghai on September 3, 2019. Travel and trade restrictions are now putting small Chinese semiconductors companies front and centre at domestic expos as the government pushes for self-reliance. Photo: Xinhua
Che Panin Chongqing
Small Chinese semiconductor companies are getting an unexpected boost from US restrictions on technologies needed for advanced chip-making, according to experts and industry insiders, as the tech war pushes domestic manufacturers to give them a try.
While the odds are still stacked against China being able to build a formidable semiconductor industry without US technologies, there are some bright spots along the industry value chain as Beijing pushes for localisation of research and production, according to interviews with exhibitors and experts at the 2021 Global Semiconductor Industry Expo, a three-day exhibition in Chongqing that started on Thursday.
The show is largely global in name only this year, with few international exhibitors, as China continues to implement strict travel controls and trade restrictions reduce the cooperation of companies like Taiwan Semiconductor Manufacturing Co (TSMC), Intel and ASML.
Attendees walk the floor at the 2021 Global Semiconductor Industry Expo on Friday. Photo: Che Pan
Attendees walk the floor at the 2021 Global Semiconductor Industry Expo on Friday. Photo: Che Pan

As a result, the floor was dominated by delegates from local Chinese governments trying to woo potential investors and small players eyeing fresh business opportunities.

“Previously, the slots of level-1, level-2 and level-3 suppliers were all occupied by foreign brands, and local brands can only wait in line,” said Teng Ran, head of integrated circuit research at CCID Consulting, referring to the priority of supplier selection. “But many companies in China are now proactively looking for domestic suppliers … and this creates business opportunities.”

Teng said that China has no other choice but to try to build up a “full supply chain”, a process that could take years, while noting that no country has yet been able to have a semiconductor supply chain solely reliant on local suppliers.

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