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.
Anonymous
2 comments:
I never realised that China had such domination in other areas besides EVs, high speed rail system construction, solar panels, rare earths, car batteries among others, areas that the MSM talks about almost daily.
TCL, a Chinese Company is a big player in the TV manufacturing business, outperforming many other world-renowned Japanese and Korean brands. Price is the factor for its rise, and it beats the competition using the same modus operandi. That is what having a huge industrial capacity can do, and TCL is not just any TV manufacturing outfit producing only TVs. It also produces smartphones, communication equipment, consumer appliances like air conditioners and consumer electronics like laptops.
Lenovo, a Chinese computer giant is also a big player in the laptop business, their 'ThinkPad' overwhelming other Japanese well-known brands like Toshiba and Fujitsu and even USA Dell. with pricing also playing a big part. Who would have thought this was possible a decade or two ago. It was a sector that was untouchable and dominated by USA and Japanese computer makers.
Now China, from a nobody, is going to dominate the semiconductor sector as well, and may even be a big player in lithography machine export. Necessity is the mother of invention, and nowhere is this more apparent than in the context of China.
As Boeing self-destruct, China's commercial jet venture will also gain global acceptance and momentum eventually. Will China also dominate global aviation is the question. If space exploration and HSR technological advance is any indication of China's ability, I would not bet against it. But you can be sure hurdles will be placed in front of its jet business, like airworthiness certification. Putting others down so that it can rise is the usual procedure adopted in the West, not open competition based on merit.
Forget about the argument that China is using State subsidies to help their industries. It is an old argument, knowing that the USA had been doing this for decades on end.
Anyway, USA will still dominate and cling on to another form of chip making. MacDonalds is untouchable in that area, LOL. They will still be the king of potato chips. Good luck to them.
And I believe China is not going to start a potato chip war against MacDonalds to wrestle for that crown.
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