China Chases Chip-Factory Dominance
China, having failed to achieve parity with the US, Taiwan and S. Korea in the design/production of cutting edge semiconductors, has embarked on a new strategy: boosting production of mature semiconductors now in high demand.
They started in 2020, and are expected to have 31 fabs, by the end of 2024. This is compared to 19 for Taiwan and 12 for the US.
While this is not cutting edge stuff, these semiconductors are the bread and butter of our technology infrastructure: cars, fridges, etc. and China can leverage that, to get cutting edge semiconductors.
The US Congress is pushing along a bill to allocate funds, allowing US companies to increase the number of "bread and butter" fabs, but some (myself included) believe this is corporate welfare, given the insane amount of money our chip vendors make. But, it may be a small price to pay, not to be caught with the short end of the supply stick.
They started in 2020, and are expected to have 31 fabs, by the end of 2024. This is compared to 19 for Taiwan and 12 for the US.
While this is not cutting edge stuff, these semiconductors are the bread and butter of our technology infrastructure: cars, fridges, etc. and China can leverage that, to get cutting edge semiconductors.
The US Congress is pushing along a bill to allocate funds, allowing US companies to increase the number of "bread and butter" fabs, but some (myself included) believe this is corporate welfare, given the insane amount of money our chip vendors make. But, it may be a small price to pay, not to be caught with the short end of the supply stick.
