U.S. trade restrictions have fueled China’s push for a more self-reliant semiconductor industry.
- The push comes seven months after construction plans for a major state-backed semiconductor factory fell into disarray.
- The Biden administration has escalated a trade war, which cut China’s access to Western technology and workers essential for building advanced semiconductors.
Why it matters: The trade barriers, motivated by U.S. concerns over China’s use of tech companies to bolster its military arsenal, have led to a rapid overhaul of supply chains and business plans.
- While U.S. suppliers pull out, China is injecting state funding to develop homegrown alternatives.
Dozens of Chinese chip companies plan to raise money through public offerings this year.
- Beijing’s “Big Fund” has been reactivated to support tech companies, injecting roughly $1.9 billion into YMTC in February.
- Meanwhile, U.S. is considering further restrictions on venture capital investments in advanced chip companies in China.
The factory at the center of this issue belongs to … (continue reading)