The U.S. has long dominated the advanced semiconductor industry and has gone to great lengths and expense to prevent China from catching up.

Tiny computing components are essential to almost everything that runs on electricity, from consumer electronics to consumer technologies like smartphones, computers, and cars, to defense systems, satellites, AI systems, and weapons of war. is.

In addition to pouring billions of dollars in subsidies and other incentives into the industry, the United States is seeking to build alliances with South Korea, Japan, the Netherlands, and Taiwan to expand production.

It also takes steps to severely limit China’s ability to access critical technology, also known as microchips.

But experts warn that the latest series of US moves in the so-called “chip wars” could backfire and force Chinese industry to develop its own advanced semiconductors.

“They are desperate to get better chips.”

green round computer chip
World-leading advanced chips are manufactured in South Korea and Taiwan.(ABC News: Mitch Denman Woolnough)

Andrew Kennedy, an associate professor at the ANU Crawford School of Public Policy, told ABC that “there is a huge gap between what China’s major chip makers can do” compared to the world’s leading producers.

To show just how much pressure is coming from China, the company announced a $1.4 trillion plan to boost its chip technology and manufacturing sector.

It aims to build 31 semiconductor factories within the next two years.


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