Posted inAT+

US sanctions accelerating China chip self-sufficiency

Tougher US tech sanctions will make things more difficult for China’s semiconductor industry but should make it increasingly clear to the Chinese that self-sufficiency is the only long-run solution.

In fact, Chinese chip design companies, production equipment makers and foundries are already benefitting from the US Commerce Department’s punitive efforts to sever their supply chains in the name of protecting US national security.

On the other hand, tech exporters such as America’s Nvidia and the Netherlands’ ASML stand to lose a significant percentage of their global sales from US export restrictions while any gains from the Biden administration’s recent attempts to ease tensions with China may have already been erased.

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