ChinaTalk

China's Chip Dreams

Mar 27, 2021
John Verwey, an expert on the Chinese semiconductor industry and former government strategist, dives deep into the evolution of China’s chip sector. He discusses government funding influences and contrasts China’s ambitious initiatives with the slow progress of its semiconductor goals. Verwey explores the implications of the U.S. CHIPS Act on global technology dynamics and sheds light on the challenges of export controls. He highlights the strategic choices China faces in its quest for self-sufficiency and technological dominance in the industry.
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ANECDOTE

Apple and TSMC

  • Apple Watch uses the most advanced chips, demonstrating the demand for leading-edge technology.
  • TSMC benefits from Apple's demand, showcasing the rewards of being at the cutting edge.
INSIGHT

SMIC's Progress

  • Despite significant investments, SMIC hasn't reached the leading edge, highlighting the industry's difficulty.
  • Developing a leading-edge chip industry takes significant time, potentially 40 years, which the Chinese government recognizes.
INSIGHT

Made in China 2025 Midterm

  • China is missing production targets for Made in China 2025, falling short of goals for domestic chip production.
  • By 2020, China produced under 10% of needed chips from Chinese companies, and under 20% including international firms in China.
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