Positive Progress in China's Electronics Industry: Expanding Domestic Market, Technological Breakthroughs, and Coping with US Sanctions
According to a report from Nikkei Asian Review[1], the Chinese government plans to expand the domestic market for electronic components to 2.1 trillion yuan (approximately 327 billion USD) by 2023. This is one of China's initiatives to further support its domestic technology industry amid increasing competition with the United States. China has been working to increase semiconductor production to cope with US restrictions, such as export bans, which have put pressure on domestic manufacturers. China is now expanding the scope of its efforts to consolidate its position as a technology superpower.
Furthermore, according to a report from The Diplomat[2], China's largest chip manufacturer, SMIC (Semiconductor Manufacturing International Corporation), has reportedly made significant breakthroughs. According to TechInsight, SMIC has advanced its technology to a quasi-7-nanometer (nm) process, which could serve as a stepping stone towards achieving true 7nm technology. TechInsight revealed that SMIC products manufactured using the quasi-7nm process have been shipping for a year. Some media outlets believe that SMIC's progress indicates that the US's blockade measures came too late and are already outdated, which is of significant importance to China's semiconductor industry. For China, having the ability to manufacture advanced chips is more important than chip prices. SMIC seems to be leveraging this older technology to achieve technological breakthroughs.
Additionally, Huawei executives have stated[3] that China's chip industry will "rejuvenate" due to US sanctions. Xu Zhijun, the rotating chairman of the Chinese telecommunications giant Huawei, has taken a firm stance against US export restrictions on China. He stated that China's semiconductor industry will actively strive for self-enhancement and self-reliance. Huawei will support the efforts of the Chinese semiconductor industry to self-rescue, strengthen, and become self-reliant.
In summary, the Chinese electronics industry is making positive progress in expanding the domestic market, technological breakthroughs in the semiconductor field, and coping with US sanctions.
References:
[1] Read more on Nikkei Asian Review: China to build $300bn electronics parts sector in break with US
[2] Find out more on The Diplomat: Chinese manufacturing hub Suzhou pushes expansion of local semiconductor sector in 2023 as US escalates chip tech restrictions
[3] Source: [Deloitte Research - China's economic and industry outlook for 2023](https://www2.deloitte.com/cn/en/pages/about-deloitte/articles
