The Semiconductor Industry: A Strategic Look at China’s Supply Chain

Abstract

Restricting China’s access to advanced semiconductor technology has become the U.S. government’s chokepoint strategy in the emerging hi-tech cold war. The development of an indigenous semiconductor supply chain is increasingly vital for China’s next stage of development. This chapter documents China’s experience of semiconductor industry policy and development, and evaluates key Chinese players in the IC supply chain and their technological capabilities. A strategic look at the supply chain shows that China’s semiconductor industry is resilient even under the U.S. pressure, though significant weakness remains.