2023-08-01 19:00:00
The US has been in a technological war with China for several years under the pretext that its military industry does not surpass that of the United States. To this end, it has prohibited the export to China of chips and lithographic production equipment that make use of US technologies. The situation has worsened in the last year, and it is finally clear that the Chinese semiconductor market is being impacted by the sanctions.
The import of chips to Chinese territory has fallen by 22%, while the import of chip production material has fallen by 23%. Especially from countries like Taiwan, South Korea, Vietnam, USA or Malaysia, which are the countries where chips are mainly produced or encapsulated. There is a rare exception like Japan since China has increased the import of chips.
In addition, the sanctions are causing the cost of importing semiconductors to rise significantly, although they have also spurred the development of Chinese chips and lithographic machinery. This is what has led the country to impose restrictions on gallium and germanium, which are necessary elements for the production of a good number of semiconductors and electronic devices.
This Chinese restriction has entered into force on August 1, so it will still take a few months before it is known how it will impact global chip production. It is a restriction, so exports must be approved by the Government, although it is expected to be in fact a ban on the US and its vassal states such as Taiwan or South Korea. But we have to wait and see exactly what China’s intentions are.
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