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Strategy Analytics: China to Expand Its Semiconductor Industry

11/03/2020

Phase II of National Investment Fund Doubles Funding in Self-Sufficiency

BOSTON--(BUSINESS WIRE)-- According to Strategy Analytics, China’s recent announcement of Phase II of its National Integrated Circuit Industry Investment Fund will lead to near self-sufficient production of integrated circuits at the all-important 28 nm feature size, probably within two years. This is but one of the consequences of the technology cold war that has broken out between the U.S. and China, as outlined in the new report Self-sufficiency for China at the Important 28 nm CMOS node: The Plan Can Succeed.

Christopher Taylor, Director of RF & Wireless Components and author of the report, stated “Efforts by the U.S. Government to cut off the sales of semiconductors to some commercial electronics producers in China have led to an increase in China’s efforts to develop its own, indigenous semiconductors. With China facing increasing restrictions on importing chips, semiconductor production equipment, and electronic design software from the U.S. and its allies, the move to self-sufficiency should help reassure customers of Huawei, HiSilicon, Fujian, SMIC, and a host of consumer electronics firms in China. However, consequences will probably include lower market share and higher production costs for the U.S. semiconductor industry and U.S. allies.”

Stephen Entwistle, VP of Strategic Technologies at Strategy Analytics, added “China was expected to have been the largest buyer of semiconductor production equipment in 2020 up until the imposition of semiconductor equipment restrictions by the U.S. As it stands now, China plans to put a big proportion of its Phase II investment into developing its own photolithography, etching, thin film deposition and wafer cleaning equipment.”

For more on this topic, you can download a complimentary copy of the report here.

Source: Strategy Analytics, Inc.

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Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com .

For more information about Strategy Analytics

Service Name: RF & Wireless Components

Service Name: Advanced Semiconductors

Report contacts:
European Contact: Stephen Entwistle, +44 (0)1908 423 636, sentwistle@strategyanalytics.com
US Contact: Alexander Kutana, +1 617 614 0741, akutana@strategyanalytics.com
China Contact: Lin Qiu, + +86 10 8975 5246, LQiu@strategyanalytics.com

Source: Strategy Analytics

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