Mainland Semiconductor impact chip leading position

When TSMC Chairman Zhang Zhongmou accepted an interview with the Wall Street Journal a few days ago, he mentioned that the next wave of threats came from mainland China. The “New York Times” also reported that the mainland has used its pressure and money to pursue the foundry industry and hopes to achieve world leadership in 2030.

According to the New York Times, following the development of smart phones, computers, and complex network devices, the mainland has designed and constructed chips that support electronic products with double power. Last year, it imported 232 billion U.S. dollars worth of semiconductor products, higher than oil.

According to the report, in order to shorten the distance between the development of industries in various countries, Beijing authorities have made large investments to gain experience of foreign chip companies. Experts also claimed that the chip industry is already one of the main focuses of espionage activities in mainland China.

China’s mainland is led by Deputy Prime Minister Ma Kai to form a task force and hopes to reach the world’s leading position in chip manufacturing by 2030. According to McKinsey & Company, a management consultancy, the team includes four ministries and is expected to invest 170 billion U.S. dollars in the development of the semiconductor industry in the next 5 to 10 years.

The report quoted Daniel H. Rosen, founder of New York-based Rhodium Group, pointing out that "currently it is clear that semiconductors and chips are particularly in a sense of urgency," especially for the mainland, relying entirely on foreign high-end imports. The chip is related to the national security of the mainland.

The former United States National Security Bureau employee Edward J. Snowden deepened the mainland’s concerns. China’s recent antitrust investigation into Qualcomm, the leader in the mobile communications chip market, can also be seen.

According to the report, in the past 15 years in mainland China, the government has made great efforts to develop mainland chip makers with subsidies, financing, and privileges. Shanghai SMIC also set up bilingual schools and churches to attract talent from Taiwan. Although still unable to level with Intel, Samsung and TSMC, SMIC has begun to take shape and has become a major semiconductor manufacturer in mainland China.