The competition in semiconductor industry between China and the U.S.

As China-U.S. relations reach a complicated phase, the technology, especially the semiconductor industry, is becoming the heart of this long-running battle. China, as one of the world's leading purchasers of semiconductors, is ramping up its chip industry to catch up with global peers and reduce its reliance on foreign technologies. So, how have the China-U.S. trade tensions affected the global semiconductor supply chains? What are the prospects of China's semiconductor industry? How long will it take for China to close the gap with the U.S.?

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[kckoay]

I am a Malaysian. I am inclined to think that what China has achieved over the 4 decades were not just the glittering buildings, and first class infrastructure. But the inherent strength generated by its commitment and investment made towards embracing science and technology. Besides, China is consciously investing in environmental protection and green technology - as the underpinning for its sustainable growth and continuous development - as evidenced by the increase of its forest cover from just 12%, 40 years ago, to to 27% now. That is simply awesome, when one takes into consideration that China’s national frontier covers 8.6 million in square kilometres.

The great momentum created by a vibrant China with 1.4 billion population - an economy which is already 1.2 times that of the size of America’s if measured in purchasing power parity, or PPP of $25.3 trillion - is unstoppable.

In 2007, China spent $124 billion in reserch and development (R&D) to that of US’s $380 billion; and Japan’s $148 billion.

But by 2016, China’s R&D investment has increased to $450 billion to that of US’s $513 billion; and Japan’s $164 billion.

These comparisons were measured in nominal exchange rate.

Adjusted for PPP, China’s R&D investment in 2016 of $860 billion was actually 1.6 times larger than that of US at $513 billion; and over 4.7 times of what Japan had spent at $180 billion.

Truth be told, if America were to treat China as its adversary or enemy, and persist on working towards technological decoupling; my bet is China will surface as the standard-bearer of a new global paradigm.

[krosny]

When you try to stop the Chinese the outcome would be counterproductive to you in the long run. Take the International Space Station for example, exclude the Chinese and what happened? They built one themselves and they're going to lead the world in this field in the future. Accuse them of stealing or copying or imitating or photostating or whatever, they just don't give you a 💩. If the Chinese can master space tech so fast, semiconductors would be child's play for them.

[views-pmjn]

i can sense china semiconductor will be very successful in developing new age of era

[sirjamesgray]

the United States should explore scientific cooperation and mutually beneficial development with China. Closing our economy off will only isolate us

[larsnystrom]

This would have been more interesting if they had focused on the semiconductor industry, as the title of the video said. Instead they strayed into general things about the general computer business. Focus on the current problem, which is producing chips!

[jooky]

Lol I like how the professor actually went on to explain the size of an IC transistor in nanometers just to highlight how much people have become aware of technology in the trade war.

[manolexing]

China​ needs to​ be​ ready to​ walk the​ path of​ the​ pioneer.​ We​ very​ much​ understand and​ support China.​ Jaiyoe!!!

[JA-pnji]

The US makes a lot of noise. Intel the US Champion is still using 14nm. AMD its competitor is a design house like ARM that subcontracts to Korean and Taiwanese fabs. ASML of the Netherlands is the main lithographic equipment maker. The US has a few chip foundry equipment suppliers Applied Materials, Lam Research with the Japanese making up the rest. It is the Korean and Taiwanese fabs that are at the cutting edge (4nm).

[davidjacobson]

Focusing on competition between China and the United States in semiconductors is highly misleading. TSMC is already the global leader in processor technology. Huawei is TSMC's second largest customer. Apple is the first. Samsung is the world leader in memory chip technology. So the question is really whether China mainland can count on China Taiwan and Korean companies. SMIC appears to be China mainland's leading company. It is a few years behind on achieving 14 nm chip processes. Probably the question of how competitive it will be on cost and volumes is more significant than whether it will be able to achieve the narrower widths. The cost of these plants is high. But, it is modest on the scale of Chinese and American defense spending. China will certainly find a way to keep SMIC at work developing its expertise at the manufacturing processes. Whether or not SMIC scales up to be a major provider probably depends both on how successful SMIC is at becoming cost competitive and how much concern there is about working with TSMC. As far as designing the chips goes, the processes seem to have been mastered by a fairly wide range of companies. Huawei is probably already in more than adequate shape to design its own chips.

[jajo]

next time... please put caption as it is not that easy to understand at times.. 🤔🙄😐

[wolf-man-bear-pig-torque]

It takes years of planning to get from design to final product. All 500+ processes of making chips and the buildings themselves are complex and they can only do incremental changes nothing major. A entirely new fab might need to be created for new products and that in itself takes a lot of money, energy and time. So, the critics of China's semiconductors industry weren't wrong in saying China might be years away from being same level as the other big players, even if China has all the know how and talent.

[MARILYNANDERSON]

It seems some US executives report unfair competition. Perhaps unfounded. Yet the President listens, believes and takes disruptive action against an industry that serves the World, and employs the various countries as well, distributing products and jobs and building markets. He must believe he is taking the correct action. NARROW VISION.

[tschoong]

To compete, you need to change your mindset to a completely different way of doing things. If you continue to try to catch up with the leaders, you are going to fail. Very different innovative methods are the methods to use to change completely the way things are done and produced. You should never copy the existing setup.
Therefore since you are not burdened with the actual high costs of manufacturing semiconductors, you may look at other methods for achieving even better performance than the present system can offer.
The way forward is to start with basic research in a very deep level and provide the best facilities for the eventual development of new technology.

[sammoussa]

Which stock i must buy for Semicondur China??

[bernaun]

Dear English CGTN, please the English captions are necessary...

[pauljmeyer]

As China is the manufacturing powerhouse of the world its potential to develop specialized semiconductors is greater than that of the declining US, therefore a catchup will be sooner than later.

[rosesachin]

China's main issue is the attitude of CCP. CCP has helped china to grow and will be responsible for its fall.

[basook]

how you have competition in semiconductor industry between China and the U.S, when US put sanctions on China over chips?
for china, they are force to make their own chips, and US consumers have to pay more for items that contains chips, which is almost everything

[gritnltw]

US has long lost the race. Actually the competitor is Taiwan. But I assume is a matter of time to surpass Taiwan as well.

[Taktiker]

When idiots are the masters, the intelligence become relative