Since 2017, China’s foreign chip purchases have exceeded $300 billion for three consecutive years. In 2018, global chip production totaled $468.8 billion, while China imported $312 billion, or 66 percent.
The importance of the Chinese market to the global chip industry speaks for itself. Analysts expect China to still buy $300bn of chips from the world this year.
Recently, Microsoft founder Bill Gates in an interview with the media made it clear: against the United States cut off Chinese chips and said that there will be a lot of high-level and new jobs lost, in the long run, the United States is the most seriously damaged party.
Some scholars have pointed out that any form of the technical blockade is impractical for a big country like China. Whether it was the atomic bomb of that year, or Beidou navigation satellite, high-speed rail, and so on, China has successfully built after breaking through the heavy technical blockade abroad.
But more crucially, it’s not just built to meet domestic demand, technologies such as high-speed rail and Beidou are already exportable to generate foreign exchange. Therefore, some scholars believe that China’s current high-end semiconductor chips are likely to replicate the development of the high-speed rail experience. First, attack manufacturing technology, and then wait for the product to mature, direct exports to the United States chip to seize the market.
As Bill Gates said in this interview: Is it really good to force China to become fully self-sufficient?
But it is clear that the U.S. is aware of the problem, and recently the U.S. approved AMD’s supply application to Huawei, which AMD can continue to supply. At this point, there is a new perception: the U.S. crackdown on Huawei is in fact aimed at crushing semiconductor companies in Japan, South Korea, Taiwan, and other places.