While the rest of the world is looking on at the tech
war involving high-end chips, China, I believe, is not too worried about
the hype. Sure, high-end chips are particularly essential for military
use, laptops, super computers and space exploration perhaps. Even
missiles may not need high-end chips.
China is quietly taking
advantage of the Western world taking their eyes off the importance of
mature chips, those in the range of 14 to 28 nanometer chips that are
enough to power EVs, consumer products like TVs, computers, washing
machines, solar panels which China is consolidating and moving further
ahead in domination.
I have a feeling the USA knows it is
barking up the wrong tree to sanction China in the high-end chips sector
alone. The bad news is that the USA can do nothing about the mature
chips sector, which China is able to produce itself, and now widely used
domestically, threatening the business of entities like Intel and AMD.
We
can just gauge the confidence prevailing in the Chinese Government's
decision to push off heavy dependence on Intel and AMD chips in
sensitive areas of the establishment. If China's domestic production of
mature chips pull ahead, Intel and AMD will face stiff competition in
China. Open sanctions against them will not be necessary, but stiff
competition in terms of price will win the day. Just like cars.
And
that, my friend is why Janet Yellen is warning China not to continue
its relentless industrial push. Imagine asking a country to stop
innovating and letting the USA and the West a chance to take over all
the leading industries. Doing that will suffocate China and lead to its
disintegration. The dumb can only fool those that are dumber, not the
smarter one.
Anonymous
2 comments:
The Chips War is making China stronger in the field of semiconductors, and this is becoming apparently clear. China has, by now already achieved the 5-nanometer chips breakthrough from 7-nanometer chips it achieved just six months ago. Sources have even been talking of China's 3-nanometer chips being on the table.
The USA and the West together with Japan and South Korea, are just pushing China to innovate faster, grow stronger and better in semiconductors. The perennial top chip manufacturers were betting on China not being able to do even the 10-nanometer chips production just not too long ago, not to talk of 7-nanometer chips which they brushed aside as an impossible goal for China.
Now China is even making its own lithography machines. ASML had boasted that even if they gave China the blueprints of those machines, China would never be able to build them. They are now foolishly eating their own words.
The West was said to have taken 5 years to progress from 7-nanometer chips to 5-nanometer chips, while China just did it in 6 months. China's speed of innovation is frightening for them, but they brought this upon themselves. While they could have continued to enjoy their domination, they tried to disturb the status quo in order to strangle China. By trying to start the chips war against China, they shot their own foot, and this is coming back to haunt them.
China will now be a competitor to Intel, AMD and others going forward, cannibalizing their dominant market share around the world in time. Of course, the narrative from the West now is claiming that the Chinese chips are not on par with theirs in the global market. China will first compete on price to gain market share while improving their product. They did that with EVs, solar panels and everything else. Never underestimate China like during the century of humiliation. China is no pushover today. You do it at your own peril.
Dear Anon 1144, the west did not shoot themselves in the foot. They shot themselves in the HEAD!
Suicidal tendencies that psychiatrists will be studying for years to come.
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