Clashed out at a $52 billion program to expand American chip manufacturing, criticizing the groundbreaking blueprint for just It contains elements that violate market principles and targets Beijing's own efforts to build it, he said. semiconductor industry.
The US Chip Act, signed this month and part of an overall package of incentives worth more than $200 billion, is meant to give Chinese rivals a helping hand. said China's Vice President Yu Xiekang. Semiconductor Industry Association. Some of them clearly discriminate against Asian countries, he said, without elaborating.
US law contains provisions that specifically prohibit funded companies from expanding production of advanced chips in China. Yu's comments are Washington's accusations that the Chinese government is using subsidies and other non-specific policy measures to drive the growth of local companies such as Semiconductor Manufacturing International Corp. and Yangtze Memory Technologies Co. reflects the
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Attended an industry conference in Nanjing. “It contains provisions that are inherently discriminatory in market competition, creating an unfair playing field that is contrary to the WTO Fair Trade Principles.”
It has stepped up its campaign to contain its manufacturing ambitions. Washington said major suppliers, like his ASML Holding NV in the Netherlands and Nikon Corp. in Japan, had imposed technology blockades.
China needs to continue to provide policy support to the semiconductor industry to resolve "chokepoints" or bottlenecks that hinder technological breakthroughs, he said.
The country may have had some success in its efforts. SMIC may have advanced his production technology by two generations despite US sanctions. China has also significantly increased memory chip capacity through Yangtze Memory and Changxin Memory Technologies Inc.
Sales by the world's largest domestic chip sector increased by 18% in 2021, but this year he is expected to slow to 15%. Yu added, as the economic slowdown and Covid lockdowns are holding back demand.
"We may enter a new structural adjustment period," warned Ma Weiqing, vice president of China Resources Microelectronics. Shipments have started to decline since June and may potentially have peaked, he told the Nanjing delegation.
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China's top leadership has spent years failing to develop semiconductors capable of replacing US circuits, despite allocating more than $100 billion to the sector in the past few years. The Nanjing Forum was the industry's first major official gathering since Beijing launched a series of investigations into possible misconduct within the industry.
Critics of Beijing's top-down policy point to enormous inefficiencies in freely distributing subsidies. Local media reports of companies with little experience in getting incentives or grants to pursue research. Powerful local stakeholders have pursued government funding by championing projects in hopes of securing subsidies and sometimes political prestige.
Tongfu, one of China's largest chip packaging companies, says the US chip law will only bring more uncertainty to the entire industry and China will have to counter its efforts. said Hu Wenlong, vice president of Microelectronics Co.
"In the face of new challenges, governments, businesses, finance, investment firms and universities need to work more closely together for technological breakthroughs," he said at the conference. rice field. Please contact us at
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