US-China, here is the risk on semiconductors
The United States wants to implement an embargo on sales of deep ultraviolet lithography tools that are used to produce semiconductors. The article by Giuseppe Gagliano
The CHIPS Act, which would provide $ 52 billion in subsidies to domestic and foreign semiconductor companies investing in America, is still standing .
Precisely for this reason, the US government is putting pressure on the Netherlands to prevent ASML Holding NV from selling the technology used to produce most of the world's chips to China. Washington is also lobbying the Japanese government to ban the sales of chip manufacturing technologies in China.
In practice, the United States wants to implement an embargo on the sales of deep ultraviolet lithography tools that are used to produce semiconductors. If this were to happen, this embargo would constitute a real attack on the entire Chinese semiconductor industry even if it would not prevent China, as it is sometimes claimed, from producing the many less advanced semiconductor products it now produces.
Regarding a new embargo, the Dutch and Japanese may not agree to US pressure. They both have a lot to lose in not selling to China, as do the Americans.
Sales of semiconductor manufacturing equipment (SPE) to customers in China increased by 58% in 2021, accounting for 29% of world sales. This figure includes sales to non-Chinese companies with factories in China.
China was the world's largest buyer of semiconductor manufacturing equipment in both 2020 and 2021.
In 2021, semiconductors worth $ 31.2 billion were produced in China, of which $ 12.3 billion were made by Chinese companies. The rest came from the local factories of TSMC , Samsung, Intel and other foreign companies.
By comparison, China consumed $ 186.5 billion worth of semiconductors in 2021, accounting for 36.5 percent of the world market. Only 17% of Chinese semiconductor demand was met by manufacturing in China and only 7% by Chinese companies. These figures are likely to rise, but the fact remains that China represents a huge market opportunity for chip makers.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/usa-cina-ecco-il-risiko-sui-semiconduttori/ on Sat, 16 Jul 2022 05:08:57 +0000.