Is China winning the chip war?

[Music] one of China's largest tech companies Huawei Technologies came out with its latest smartphone in the last week of August mate 60 Pro is being built as China's answer to the USS iPhone and experts believe through this phone China has also sent across a message to the West that sanctions can be counterproductive and the devil as they say is in the details it's not the phone but a tiny part which has sent out shock waves at the heart of mate 60 Pro is an advanced system-on-chip processor or 7 nanometer semiconductor chip it has led to hushed concerns in the US and it is believed that the chip was manufactured by semiconductor manufacturing International Corp or smic a partly Chinese government-owned semiconductor Foundry Company this has been the most advanced chip that smic has ever produced previously 14 nanometer was the most advanced chip that smic was able to manufacture in October last year U.S President Joe Biden had announced curbs on shipments of semiconductors used for artificial intelligence and Chip making tools the Netherlands and Japan too joined the US the aim was clear to make sure that China is not only deprived of the advanced chips but also of the tools to make them and in 2020 the U.S bought smic from acquiring the extreme ultraviolet lithography technology from Netherland based asml which is critical in manufacturing 7 nanometer chips but despite all the odds smic producing an advanced chip suggests that China has been making progress in building a domestic chip ecosystem so is China winning the chip war against the West these sanctions will not have any impact on China will grow China has already handled uh you know created a complete capacity and you know capability internally to do much bigger things than what uh people have ever thought of okay as per you know any of the technology whether it is artificial intelligence or uh chip manufacturing anything they have invested quite a lot and they have been far ahead of many other countries into the Western countries in the world okay so sanctioned from Western World will not have any major impact on the growth of China it will have an counter impact on Western World Tech insights Inc a semiconductor information platform had said in 2022 that to create seven nanometer chips smic might have been tweaking simpler asml machines that were with them before the sanctions were imposed but experts are suggesting that without the extreme ultraviolet lithography technology only 50 or fewer chips will turn out to be usable today the world's most advanced chips are made by a single company Taiwan semiconductor manufacturing company or tsmc which can produce three nanometer chips and the machines for producing Advanced chips are only made at Netherlands asml Japan contributes to the value Chain by providing other basic items needed for manufacturing and the US creates the software for Designing the chips now Reports say that China is set to launch a new state-backed investment fund that aims to raise about 40 billion dollars for its semiconductor sector previously in 2014 and 2019 too China invested huge funds targeting the two big chip manufacturing entities smic and Hua Hong semiconductor but these Investments didn't help China to disrupt the international semiconductor value chain so what's the current state of China's semiconductor ecosystem all this news about seven nanometer experience chip from basically smic for Huawei it may be true but basically at this point of the time my take on this thing is that even if they are able to manufacture seven nanometer technology this will not be very high yielding technology they will have to do much more work to basically make it high yielding and commercially viable technology right that's the Fab side there is basically another site which is semiconductor equipment manufacturing like asml manufacture semiconductor point so there is this company Shanghai SM ee right Shanghai manufacturing Electronics uh uh I think they are also very close to basically developing the advanced uh semiconductor manufacturing Machinery China meanwhile may not stop foreign and sometimes its timing can be perplexing too the Huawei phone was released during the visit of the United States Secretary of Commerce Gina Raymondo her Department was responsible for all the tech sanctions in a similar move China had unveiled its j-20 stealth fighter aircraft during the visit of U.S Secretary of Defense Robert M Gates caught off guard the U.S May slap another set of sanctions on China shares in smic plunged on Thursday after two U.S congressmen called on the White House to further restrict export sales to the company clearly China has found a way around U.S sanctions Paul triolo technology policy lead at washington-based business consulting firm Stonebridge group told Washington Post that the new phone was a major blow to all of huawei's former technology suppliers most of whom were U.S companies if you like this video share it 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Length: 7min 3sec (423 seconds)

Published: Fri Sep 08 2023