SEMICONDUCTORS: THE ACHILLES’ HEEL OF CHINA
Have you ever heard of semiconductors? These are the parts that make the technologies we use today work. Without them, even the production of the simplest smartphone would be impossible. China is responsible for 60% of global semiconductor consumption and is highly dependent on this material – an aspect that can be considered its Achilles’ heel.
Discover how tensions with the United States affect China’s semiconductor supply and put it at a disadvantage in the technology race.
- Global semiconductor consumption
- Chinese dependence on this material
- Market share of chip companies
- Projections of this industry for the future
- And much more!
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1 trillion chips produced per year
The chip industry generates $450 billion a year
China imported $1 trillion in semiconductors in the last 4 years
China is only able to meet 15% of its domestic demand. Currently, the most advanced chips are made by Samsung and Taiwan Semiconductor Manufacturing Company (TSMC). Due to the great difficulty in receiving supplies from the USA and Taiwan, in addition to political and commercial tensions, as well as the lack of technology to manufacture more advanced and competitive chips, China plans to reduce its dependence, becoming a reference in the production of semiconductors in the next few years.
The Chinese government has set aside $200 billion to build semiconductor factories. The biggest challenges will be geopolitical, economic, and timing issues to catch up with global competitors.
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