Growth of the Chinese Semiconductor Industry
DOI:
https://doi.org/10.58445/rars.252Keywords:
China, SemiconductorAbstract
This research paper discusses the current state of the semiconductor industry in China, how the Chinese government has invested in the industry to increase its production capacity and quality of semiconductors, and the impact of US policies on the growth and development of the Chinese semiconductor industry. It further examines the components of the semiconductor manufacturing process, the countries’ involvement in the process, and the implications of the US-China trade war on the semiconductor industry. Additionally, it analyzes the Chinese government's policies to accelerate the growth of the industry, the effect of Chinese labor costs on the industry, and the potential of the Chinese semiconductor industry to become a major player in the global semiconductor industry. Finally, after examining economic growth statistics, politics and policies, international trade, and other aspects of the semiconductor industry, the paper concludes and recommends how China can continue to grow its semiconductor industry in the long term, and what this could mean for its future economic growth. All in all, the following paper provides a comprehensive overview of the semiconductor industry in China and its potential to become a major player in the global semiconductor industry.
References
Amaro, Silvia, and Arjun Kharpal. "The U.S. imposed semiconductor export controls on China. Now a key EU nation is set to follow suit." CNBC, 9 Mar.2023, www.cnbc.com/2023/03/09/asml-netherlands-to-restrict-semiconductor-machine-exports-after-us-pressure.html. Accessed 19 Apr. 2023.
Ann LaRocco, Lori. "China, 'factory of the world,' is losing more of its manufacturing and export dominance, latest data shows." CNBC, 20 Oct. 2022. CNBC, www.cnbc.com/2022/10/20/china-factory-of-the-world-is-losing-its-manufacturing-dominance.html#:~:text=China%20is%20losing%20more%20manufacturing%20and%20export%20market%20share%20in,time%20dominance%20of%20global%20trade. Accessed 12 Apr. 2023.
Bao, Anniek, and Liu Peilin. "China's Stumbling Sprint to Semiconductor Self-Sufficiency." Caixin Global. Caixin Global, www.caixinglobal.com/2020-11-20/chinas-stumbling-sprint-to-semiconductor-self-sufficiency-101630701.html. Accessed 4 Apr. 2023.
Batisse, Cécile. "The Location of Manufacturing Industry and Spacial Imbalance." China Perspectives, vol. 2005, no. 4, 1 Aug. 2005, https://doi.org/10.4000/chinaperspectives.502. Accessed 24 Mar. 2021.
Bulloch, Douglas. "China Is Running Out Of Cheap Rural Labor And It's Because Of Failed Reforms." Forbes, 3 Mar. 2017, www.forbes.com/sites/douglasbulloch/2017/03/03/china-is-running-out-of-cheap-rural-labor-and-its-because-of-failed-reforms/?sh=6ebd650325c6. Accessed 15 Apr. 2023.
Casanova, Robert. "Despite Short-Term Cyclical Downturn, Global Semiconductor Market's Long-Term Outlook is Strong." Semiconductor Industry Association, 8 Feb. 2023, www.semiconductors.org/despite-short-term-cyclical-downturn-global-semiconductor-markets-long-term-outlook-is-strong/#:~:text=Over%20this%20same%20period%2C%20unit,increase%20by%2056%25%20by%202030. Accessed 4 Apr. 2023.
"China's grip on electronics manufacturing will be hard to break." The Economist, 11 Oct. 2018, www.economist.com/business/2018/10/11/chinas-grip-on-electronics-manufacturing-will-be-hard-to-break. Accessed 29 Mar. 2023.
Coates, Rosemary. "Global Labor Rates: China is no longer a low-cost country." Logistics Management, 5 Jan. 2023, www.logisticsmgmt.com/article/global_labor_rates_china_is_no_longer_a_low_cost_country. Accessed 4 Apr. 2023.
"Global Semiconductor Sales Increase 3.3% in 2022 Despite Second-Half Slowdown." Semiconductor Industry Association, 3 Feb. 2023. Semiconductor Industry Association, www.semiconductors.org/global-semiconductor-sales-increase-3-2-in-2022-despite-second-half-slowdown/. Accessed 8 Apr. 2023.
Leng, Sidney. "China's semiconductor dream takes a hit as local authority takes over 'nightmare' Wuhan factory." South China Morning Post, 18 Nov. 2020, www.scmp.com/economy/china-economy/article/3110368/chinas-semiconductor-dream-takes-hit-local-authority-takes. Accessed 4 Apr. 2023.
Orr, Gordon, and Christopher Thomas. "Semiconductors in China: Brave new world or same old story?" McKinsey & Company, 1 Aug. 2014, www.mckinsey.com/industries/semiconductors/our-insights/semiconductors-in-china-brave-new-world-or-same-old-story. Accessed 2 Apr. 2023.
Shah, Rishi. "What is 'Lewis turning point' and its importance for China." The Economic Times, 30 July 2012, economictimes.indiatimes.com/news/international/what-is-lewis-turning-point-and-its-importance-for-china/articleshow/15263147.cms. Accessed 11 Apr. 2023.
Thomas, Christopher. "A new world under construction: China and semiconductors." McKinsey & Company, 1 Nov. 2015, www.mckinsey.com/featured-insights/asia-pacific/a-new-world-under-construction-china-and-semiconductors. Accessed 3 Apr. 2023.
Thomas, Christopher A. "Lagging but motivated: The state of China's semiconductor industry." Brookings Institution, 7 Jan. 2021, www.brookings.edu/techstream/lagging-but-motivated-the-state-of-chinas-semiconductor-industry/. Accessed 4 Apr. 2023.
"Will China dominate the world of semiconductors?" The Economist, 29 June 2022, www.economist.com/international/2022/01/29/will-china-dominate-the-world-of-semiconductors. Accessed 4 Apr. 2023.
Downloads
Posted
Categories
License
Copyright (c) 2023 Jaehee Choi
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.