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In semiconductor manufacturing, China will not be able to catch up with the United States for at least five years
US sanctions against Huawei and SMIC, introduced last year, not only limited Chinese companies in development, but also created conditions for the emergence of a global shortage of components. The authorities of many countries are now trying to achieve technological sovereignty, but this is very difficult. Experts believe that the Chinese semiconductor industry will not be able to catch up with the American one for another five years, at least.
Image source: TSMC
Of the five largest suppliers of lithographic equipment, according to CNBC, three are located in the United States, one is located in Europe and Japan. At the same time, the Chinese company SMIC is 80% dependent on the supply of American lithographic equipment. After the imposition of US sanctions, SMIC announced its intention to create an experimental production line that does not use equipment and technologies of American origin, but knowledgeable sources say that for this initiative the company depends on Japanese suppliers, which at any time can turn away from Chinese customers at the direction of American partners.
ASML Holding never shipped SMIC’s first EUV lithographic scanner to China, as US authorities intervened in a Dutch manufacturer’s relationship with this Chinese client. As Bank of America experts noted last week, there is no reason to expect significant progress in the Chinese semiconductor industry without access to American technology. It will take more than five years before China moves forward on this issue, analysts say.