U.S. Hegemony Disrupts Global Chip Supply Chain
By GONG Qian
The U.S. has been continuously intensifying its restrictions on the sale of high-end semiconductors to China, pressuring relevant companies not to sell high-end chip manufacturing equipment to China, and adding Chinese enterprises and institutions to its so-called "entity list".
Coerced by U.S. hegemony, the world's top chipmakers are forced to halt the sale of high-end chips and high-end chip manufacturing equipment to Chinese companies, thereby incurring the loss of market share and revenues.
Such U.S. hegemonic moves will not only hurt enterprises' legitimate interests, but also severely disrupt the global supply chain in the semiconductor sector.
The global supply of high-end chips is expected to tighten further. From global perspective, new restrictions by the U.S. reveal the fragility of the semiconductor supply chain and the profound impact of geopolitical tensions on technological innovation and supply chains.
Though the technological blockade puts pressure on China's chip industry, the Chinese semiconductor sector has made significant strides.
Over the past decade, China's integrated circuit (IC) industry has maintained a high growth rate. In 2013, the ratio of domestically produced to imported ICs was 32.58 percent; by the first half of 2024, this ratio had risen to nearly 80 percent, reflecting the growing capability and self-sufficiency of China's IC production.
According to data by the General Administration of Customs, China's IC exports reached 640.91 billion RMB from January to July 2024, marking a 25.8 percent year-on-year increase. This significant growth reflects the rapid development of China's semiconductor industry and its expanding role in the global market.
Crisis breeds opportunity as well. Technology hegemony has led to an acceleration in China's independent innovation and enhanced the resilience of the industrial chain. By increasing investment in semiconductor research and development and improving self-reliant design and manufacturing, China's chip industry could reshape the global semiconductor market landscape.
