Sep 04, 2020 17:00:00

Chinese government fully supports domestic chip industry in the fourteenth five-year plan and counters US regulations

by

Craig Nagy

China has formulated a “ five-year plan ” that is an economic strategy such as goals and methods to be achieved every five years, and a meeting to formulate the fourteenth five-year plan (2021 to 2025) is 2020. It will be held in October of the year. According to Bloomberg, China will focus on developing the 'domestic semiconductor industry' in the 14th Five-Year Plan to counter US regulations.

China Said to Plan Broad Chip Sector Support to Fight Trump-Bloomberg
https://www.bloomberg.com/news/articles/2020-09-03/china-is-said-to-plan-broad-chip-sector-support-to-counter-trump

In recent years, the United States has tightened regulations on Chinese companies, and in June 2020, major communication equipment manufacturer Huawei and smartphone manufacturer ZTE were designated as national security threats . Additionally, in August, the US Department of Commerce added 38 Huawei affiliates to the export ban to prevent Huawei from accessing US-made technology.

U.S. export control to Huawei and affiliates further strengthened, 38 affiliates added to list-GIGAZINE

Export restrictions by the United States have caused significant damage to China's technology industry, and Huawei has already been forced to suspend the production of the latest 5G compatible high-end chipset ``Kirin 9000'' under the influence of sanctions by the United States. ..

Huawei forced U.S. sanctions to discontinue production of high-end Kirin chips-GIGAZINE

China imports $300 billion in semiconductors annually, and its semiconductor technology relies on American chip design tools and patents, as well as the manufacturing technology of its US allies. However, as the relationship between the United States and China worsens, it becomes more difficult to import semiconductors that support China's high-tech industry.

Bloomberg reports that the Chinese government is preparing broad support for the so-called third-generation semiconductor industry in its 14th Five-Year Plan, according to a person who asked for anonymity who is familiar with the movement of the Chinese government. It was Of China Xi Jinping Jintao, and to invest in 2025 from the wireless network up to the artificial intelligence, estimated for the various technologies 1.4 trillion dollars (about 150 trillion yen) those promises have been.

Dan Wang, technology analyst at research firm Gavekal Dragonomics , said: 'Chinese leaders recognize that semiconductors support all advanced technologies and can no longer rely on American supplies. Pointed out.' Faced with strict US regulations, I think China has become a policy to develop its own semiconductor industry. Stock prices of semiconductor companies have risen on the Hong Kong Stock Exchange and mainland Chinese exchanges following the news that the Chinese government will invest in the semiconductor industry.

The third-generation semiconductors that China is paying attention to are chipsets that are mainly made of materials such as

silicon carbide and gallium nitride , and are excellent in high-temperature and high-frequency operation as well as high voltage operation resistance. It is expensive. Therefore, it can be used in a wide range of applications such as 5G communication chips, military radar, and electric vehicles.

It seems that CREE in the United States and Sumitomo Electric Industries in Japan are already developing third-generation semiconductors, but at the time of writing the article, there is no country monopolizing the third-generation semiconductor technology. Bloomberg points out that China is nationwide accelerating research on third-generation semiconductors and trying to win the race. 'This is a sector that is about to grow explosively,' said Alan Zhou, managing partner of An Xin Capital , a Fujian-based investment fund. Argued that there is a possibility of leading.