China Chipmaking Industry’s Countermeasures Toward U.S. Sanctions and the Most Recent Achievements
DOI:
https://doi.org/10.54691/bcpbm.v38i.4250Keywords:
Economics; Finance; Chipmaking; China semiconductor.Abstract
The Sino-US technology war has greatly impacted China’s technological sector, including the semiconductor industry, which is instrumental in the production of technological products that are crucial in commercial and military technology. Previous research has failed to explore the specific development situation and development prospects of the leading emerging technology companies in China. Hence, this research aimed at addressing the identified gap in the literature on the Sino-US technology war, using a case study approach that focused on three main companies in China’s RF chip industry: Maxscend, Vanchip, and Microgate. Generally, the results reveal that although China’s domestic RF chip industry has grown rapidly in preparation for self-sufficiency, local companies in the industry are still facing several obstacles that are hindering self-sufficiency, mainly competition from the US, Japan, and other developed RF chip industries. Consistent with previous research, this case study urges the Chinese government to continue providing subsidies to its semiconductor industry and ensure that local technology companies have adequate funding for their development projects. Additionally, this case study proposes that the Chinese government should collaborate with local technology companies to increase human capital, since inadequate human capital is identified as a key barrier in China’s progress toward achieving self-sufficiency. Furthermore, China should make improvements in explicit knowledge transfers, as advancements in aspects such as intellectual property theft will assist local companies in keeping pace with the competition in the global semiconductor industry.
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