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Huawei sanctions will destroy US chip industry

Next month, Chinese leaders will ratify a plan to dominate the world’s semiconductor industry by 2025, in response to US restrictions on Chinese imports of high-end computer chips made with American equipment.

Directed against China’s telecom equipment makers Huawei and ZTE, the new US regulations published in July stop Huawei from producing its house-designed chips at Taiwan’s state-of-the-art fabricators.

Computer chips, the core technology of the digital age, are a top priority in China’s proposed US$1.4 trillion, five-year plan to leapfrog the US. Chinese initiatives include:

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