Sure! Here’s the translation:
The intensification of sanctions imposed by the United States has accelerated the development of the semiconductor industry in China, while Taiwanese suppliers face pressure to diversify their operations and adapt to a changing geopolitical landscape.
Huawei Leads in Technological Self-Sufficiency
Huawei Technologies has embarked on an ambitious strategy to establish a domestic semiconductor supply chain in direct response to U.S. restrictions. The company is building advanced facilities in Shenzhen, including factories to produce 7-nanometer chips and Ascend artificial intelligence processors. These facilities are backed by the local government and in collaboration with companies like SMIC and SMEE, reflecting a coordinated effort to reduce dependence on foreign technologies.
State Investments Strengthen the Sector
The Chinese government has launched a $47 billion investment fund to boost its semiconductor industry, aiming for technological self-sufficiency. This fund is intended to support key companies like SMIC and YMTC, which are expanding their production capacities and developing advanced technologies, including 5-nanometer chips and 232-layer NAND memory.
Taiwanese Suppliers Adjust Strategies
U.S. sanctions have also impacted Taiwanese suppliers like TSMC, which is facing investigations for possible export control violations related to chips made for Huawei. The company could face significant fines and has intensified its investments in the United States to mitigate risks.
Furthermore, Taiwanese manufacturers of older chips, such as UMC and Powerchip, are losing market share to Chinese competitors like SMIC and Hua Hong, which offer lower prices and receive state support. To remain competitive, these suppliers are exploring more advanced and specialized processes.
Future Outlook
The combination of sanctions and industrial policies has accelerated the transformation of the semiconductor landscape in Asia. China is moving towards technological self-sufficiency, while Taiwan is looking to diversify its operations and strengthen international alliances. The evolution of this dynamic will have significant implications for the global supply chain and technological geopolitics in the coming years.
Sources: EE Times Asia, DIGITIMES Asia.