Strategy Analytics: China to Expand Its Semiconductor Industry

With China facing increasing restrictions on importing chips, semiconductor production equipment, and electronic design software from the U.S. and its allies, the move to self-sufficiency should help reassure customers of Huawei, HiSilicon, Fujian, SMIC, and a host of consumer electronics firms in China.

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Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Tuesday, November 3, 2020
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Tags: 
Electronic design automation, Semiconductor, Consumer electronics, Technology, Software, Hardware, Industries, Telecommunications, Semiconductor device fabrication, Companies of China, Huawei, Smartphones, SEMI, HiSilicon, Semiconductor industry, Semiconductor Manufacturing International Corporation
Geotags: 
Massachusetts, China, United States
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STRATEGY ANALYTICS
Summary
Key Points: 
  • With China facing increasing restrictions on importing chips, semiconductor production equipment, and electronic design software from the U.S. and its allies, the move to self-sufficiency should help reassure customers of Huawei, HiSilicon, Fujian, SMIC, and a host of consumer electronics firms in China.
  • However, consequences will probably include lower market share and higher production costs for the U.S. semiconductor industry and U.S. allies.
  • Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions.
  • Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies.


According to Strategy Analytics, China’s recent announcement of Phase II of its National Integrated Circuit Industry Investment Fund will lead to near self-sufficient production of integrated circuits at the all-important 28 nm feature size, probably within two years. This is but one of the consequences of the technology cold war that has broken out between the U.S. and China, as outlined in the new report Self-sufficiency for China at the Important 28 nm CMOS node: The Plan Can Succeed.

Christopher Taylor, Director of RF & Wireless Components and author of the report, stated “Efforts by the U.S. Government to cut off the sales of semiconductors to some commercial electronics producers in China have led to an increase in China’s efforts to develop its own, indigenous semiconductors. With China facing increasing restrictions on importing chips, semiconductor production equipment, and electronic design software from the U.S. and its allies, the move to self-sufficiency should help reassure customers of Huawei, HiSilicon, Fujian, SMIC, and a host of consumer electronics firms in China. However, consequences will probably include lower market share and higher production costs for the U.S. semiconductor industry and U.S. allies.”

Stephen Entwistle, VP of Strategic Technologies at Strategy Analytics, added “China was expected to have been the largest buyer of semiconductor production equipment in 2020 up until the imposition of semiconductor equipment restrictions by the U.S. As it stands now, China plans to put a big proportion of its Phase II investment into developing its own photolithography, etching, thin film deposition and wafer cleaning equipment.”

For more on this topic, you can download a complimentary copy of the report here.

Source: Strategy Analytics, Inc.

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About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com .

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Service Name: RF & Wireless Components

Service Name: Advanced Semiconductors

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