How the US is trying to maintain dominance in the advanced semiconductor industry and limit China’s ability to develop its own

The United States has long dominated the advanced semiconductor industry and is doing everything it can to prevent China from catching up.

Small computing components are essential to just about anything powered by power these days, from home appliances to consumer technology like smartphones, computers and cars, to defense systems, satellites, AI systems and weapons of war.

In addition to pumping billions of dollars in subsidies and other incentives into its industry, the US has sought to build alliances with South Korea, Japan, the Netherlands and Taiwan to boost production.

It has also taken steps to drastically restrict China’s ability to access critical technology, also known as microchips.

But experts warn that the latest set of US moves in so-called “chip wars” could also backfire and push China’s industry to develop its own advanced semiconductors.

‘They’re dying for better chips’

A round green computer chip
The world’s leading advanced chips are manufactured in South Korea and Taiwan.(ABC News: Mitch Denman Woolnough)

ANU Crawford School of Public Policy Associate Professor Andrew Kennedy told ABC there was a “very significant gap between what the major Chinese chipmakers can do” compared to the world’s leading producers.

To give an idea of ​​how massive China’s push is, it has announced a $1.4 trillion plan to promote its chip manufacturing and technology sectors.

Its goal is to build 31 semiconductor plants in the next two years.

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