Institution: Export controls may lead to China dominating the global low-end chip market

Source: Electronic Technology Application ChinaAET

    According to foreign media reports, the Office of the Director of National Intelligence (DNI) of the United States stated in its annual threat assessment recently that US export controls against China may lead the country to dominate the global industry in the field of "low capacity" chip technology. DNI also warned that China, which is rapidly building new chip factories, remains "the biggest threat to the technological competitiveness of the United States.".

    DNI stated that China is "redoubling its efforts to promote independent innovation and achieve self-sufficiency", especially in the chip industry. The United States imposed new export controls on semiconductor related goods shipped to China last October, but DNI said that restrictions on advanced chips have led China to focus on meeting the world‘s demand for low-level chip technology.

    "Due to the difficulties faced by Western countries‘ export controls, China is focusing on commodity chip technology with lower capabilities, and China may become a strong country in this field, which may ultimately make some buyers more willing to rely on China."

    China is also a world leader in building new chip factories, and is expected to account for 18% of global manufacturing facilities by 2025, an increase of 7% compared to 2019.

    DNI stated that although it focuses on older chip technology, Beijing also continues to seek to obtain proprietary commercial and military technology from "American and allied companies and institutions.". "Beijing‘s willingness to use jd activities, subsidies, and trade policies to try to provide its companies with a competitive advantage not only represents a continuing challenge to the US economy and its workers, but also promotes Beijing‘s efforts to gain leadership in world technological progress and standards.".

    DNI expects China to "persist in its efforts to obtain foreign scientific and technological information and expertise," including through "extensive" cooperation with foreign scientists and researchers. DNI also warned of China‘s malicious "investment and acquisition, talent recruitment, economic jd activities, and online DQ to acquire and transfer technology and technical knowledge."