BEIJING - China's chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei Technologies to Hikvision spurred appetite for home-grown components.
That supercharged growth underscores how tensions between Washington and Beijing are transforming the global US$550 billion semiconductor industry - a sector that plays an outsized role in everything from defence to the advent of future technologies like AI and autonomous cars. The rise of indigenous names has caught the attention of some of the pickiest clients: Apple was said to consider Yangtze Memory Technologies as its latest supplier of iPhone flash memory.
At the heart of Beijing's ambitions is the impetus to wean itself off a geopolitical rival and more than US$430 billion worth of imported chipsets in 2021. Orders for chip-manufacturing equipment from overseas suppliers rose 58 per cent last year as local plants expanded capacity, data provided by industry body Semi show.
SMIC and Hua Hong Semiconductor, the biggest contract chip makers, have kept their Shanghai-based plants operating at almost full capacity even as the worst Covid-19 outbreak since 2020 paralyses factories and logistics across China.
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