China’s Chip Industry Thrives in the First Half of 2023, Reducing Dependence on the US

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PROGRES.ID – Massive revenues from China’s chip industry saw a surge in the first half of 2023, according to the latest report from a research firm released this week. This reflects Beijing’s commitment to continue developing self-sufficiency in the semiconductor industry and reduce its dependence on the United States (US).

The top ten chip manufacturers in China collectively generated revenue of 16.2 billion yuan, equivalent to approximately 34.3 trillion Indonesian Rupiah, in the first half of 2023, based on a report from the CINNO research firm.

Semiconductors are a crucial technology for the development of various innovations, from smartphones to satellites. Previously, the US dominated the semiconductor sector.

The escalating tensions between the US and China have had a negative impact on the technology business in the country led by Xi Jinping. The US has even banned the export of advanced chip-making technology to China.

As a result, China fell behind the US, South Korea, and Taiwan, as reported by CNBC International on Friday (September 29, 2023).

However, China did not give up easily and slowly began to rise. Recently, Huawei, which has been blacklisted by the US, demonstrated its self-reliance by launching the Mate 60 Pro smartphone that supports 5G networks without relying on US technology.

This has angered the Biden administration. The US has accused China of violating its trade sanctions and refusing to acknowledge China’s capability to produce advanced chips independently.

In the future, analysts predict that China’s chip industry will continue to catch up. CINNO even mentioned Naura Technology Group as one of the largest chip manufacturers in China.

Naura’s revenue increased by 68% year-on-year, collecting 7 billion yuan during the first half of 2023. In second place is Advanced Micro-Fabrication Equipment China (AMEC), with a 28% increase in revenue to 2.53 billion yuan.

Meanwhile, in third place is ACM Research, which gathered 1.61 billion yuan in the last six months.

However, China still faces challenges in accessing advanced chip technology from the Dutch company ASML. The US has urged the Netherlands and Japan to join in restricting the export of advanced chip technology to China.

ASML is a manufacturer of advanced chip manufacturing equipment known as ultraviolet lithography machines. This expensive equipment is crucial for the efficient production of advanced chips.

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