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TechTech War

Tech war: China’s chip veterans predict huge challenges as US ratchets up tech restrictions

  • The US Chips and Science Act creates insurmountable difficulties in China’s drive to manufacture advanced semiconductors domestically, one expert said
  • While China’s chip industry sales seem to be doing well, its core technologies leave much to be desired, another industry insider said

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US President Joe Biden during a virtual meeting on the Chips and Science Act in Washington in July 2022. Photo: Bloomberg
Che Pan

China faces immense difficulties in developing its domestic semiconductor industry, as the US significantly ramps up export restrictions on advanced technologies, according to top Chinese chip experts and executives.

Washington’s efforts to dampen China’s semiconductor ambitions, which gathered speed last week after US President Joe Biden signed the Chips and Science Act into law, have become one of the most discussed topics at the 2022 World Semiconductor Conference and Expo, which kicked off on Thursday in the eastern Chinese city of Nanjing.

The new US law, which seeks to deter foreign investments in advanced chip-making technologies in China, creates insurmountable challenges, said Yu Xiekang, vice-chairman of China Semiconductor Industry Association (CSIA) – the state-backed trade group behind the mainland’s integrated circuit (IC) industry.

“It is impossible for China to tackle bottlenecks in semiconductor equipment and materials on its own,” Yu said during a panel discussion. He suggested that the country should consider alternative paths, such as shoring up its strength in advanced packaging, including chiplets.

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China condemns new US law aimed at boosting domestic semiconductor manufacturing

China condemns new US law aimed at boosting domestic semiconductor manufacturing
The CSIA, which represents 744 member-firms in China’s semiconductor sector, on Wednesday denounced the US chips act as a violation of fair trade, and warned of “chaos” in global supply chains.

China’s home-grown chip materials and equipment are not yet good enough to replace imports, Hu Wenlong – vice-president of Tongfu Microelectronics, a leading Chinese semiconductor testing and packaging company – said at the event.

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