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Agency: Export controls could lead to China dominating global low-end chip market

According to foreign media reports, the U.S. Office of the Director of National Intelligence (DNI) stated in its annual threat assessment released recently that U.S. export controls on China may lead to the country dominating the global industry in the field of “low-capability” chip technology. The DNI also warned that China, which is rapidly building new chip factories, remains “the greatest threat to U.S. technological competitiveness.”

DNI said China was “redoubled efforts to promote independent innovation and achieve self-sufficiency”, especially in the chip industry. The U.S. imposed new export controls on semiconductor-related items shipped to China last October, but the DNI said the restrictions on advanced chips had led China to focus on meeting the world’s demand for low-level chip technology. “Because China faces difficulties with export controls from Western countries, it is focusing on less capable commodity chip technology, and China’s potential to become a powerhouse in this field may ultimately make some buyers more willing to rely on China,” the report said. “

China is also leading the world in building new chip factories and is expected to account for 18% of global manufacturing facilities by 2025, up 7% from 2019.

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While it focuses on older chip technology, Beijing also continues to seek to obtain “proprietary commercial and military technology from U.S. and allied companies and institutions,” the DNI said. “Beijing’s willingness to use jd activities, subsidies, and trade policies to try to provide its companies with a competitive advantage not only represents an ongoing challenge to the U.S. economy and its workers, but also drives Beijing’s attempts to achieve leadership in world technological advancement and standards s hard work”.

The DNI expects China to “sustain its efforts to acquire foreign scientific and technological information and expertise,” including through “extensive” collaborations with foreign scientists and researchers. The DNI also warns of China’s malicious “investments and acquisitions, talent recruitment, economic development activities, and network DQ to acquire and transfer technology and technical knowledge.”


Post time: Mar-21-2023