Article 58PFG The Global Semiconductor Market: China Deploys Sun Tzu to Prevail in the Chip War

The Global Semiconductor Market: China Deploys Sun Tzu to Prevail in the Chip War

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The Global Semiconductor Market: China Deploys Sun Tzu to Prevail in the Chip War - Global Research:

Let's cut to the chase: with or without a sanction juggernaut,China simply won't be expelled from the global semiconductor market.

The real amount of chip supply Huawei has in stock for their smart phone business may remain an open question.

But the most important point is that in the next few years - remember Made in China 2025 remains in effect - the Chinese will be manufacturing the necessary equipment to produce 5 nm chips of equivalent or even better quality than what's coming from Taiwan, South Korea and Japan.

Conversations with IT experts from Russia, ASEAN and Huawei reveal the basic contours of the road map ahead.

They explain that what could be described as a limitation of quantum physics is preventing a steady move from 5nm to 3nm chips. This means that the next breakthroughs may come from other semiconductor materials and techniques. So China, in this aspect, is practically at the same level of research as Taiwan, South Korea and Japan.

Additionally, there is no knowledge gap - or a communication problem - between Chinese and Taiwanese engineers. And the predominant modus operandi remains the revolving door.

China's breakthroughs involve a crucial switch from silicon to carbon. Chinese research is totally invested in it, and is nearly ready to transpose their lab work into industrial production.

In parallel, the Chinese are updating the US-privileged photo-lithography procedure to get nanometer chips to a new, non-photo lithography procedure capable of producing smaller and cheaper chips.

As much as Chinese companies, moving forward, will be buying every possible stage of chip manufacturing business in sight, whatever the cost, this will proceed in parallel to top US semiconductor firms like Qualcomm going no holds barred to skirt sanctions and continue to supply chips to Huawei. That's already the case with Intel and AMD.

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