US Commerce Secretary Gina Raimondo says that stopping China's semiconductor craze is a "fool's errand" and that the only way to defeat them is to focus on in-house production.
US's Export Control Measures For China Haven't Worked Out Too Well, As The Hostile Nation Witnesses Record Industrial Growth
The US-China chip war have seen a new high in the span of the Biden administration, given that both entities are focused on fueling the development of their native semiconductor industries to maintain global dominance in this particular segment. With the US constantly revising its trade policies to thwart the progress of China's semiconductor industry, it seems like the latest comments by US Commerce Secretary Gina Raimondo (via WSJ) indicate that this strategy isn't working at all. Instead, domestic innovation is what is required here.
Trying to hold China back is a fool’s errand. The only way to beat China is to stay ahead of them. We have to run faster, out innovate them. That’s the way to win.
- Gina Raimondo via WSJ
Under the Biden administration, the country saw its biggest incentive to promote semiconductor progress with the "CHIPS Act," which marked $53 billion in tax credits, grants, and loans to companies interested in setting up facilities in the US. The scheme marked the beginning of what is being called the modern-day "industrial revolution," with firms such as Samsung, TSMC, and Intel opening up billion-dollar chip facilities. This is indeed one step for the US towards achieving semiconductor independence, although there's still a lot to do.
Despite the US and its allies, such as Japan and the Netherlands, restricting Beijing's access to high-end semiconductor equipment, China has seen a massive rise in semiconductor development, especially for "mature nodes," which is why the nation's significance in this industry cannot be ignored. Domestic manufacturers like SMIC have seen massive breakthroughs over the past few years, and with this, it won't be wrong to say that the US measures against China haven't worked out too well.
It will be interesting to see how the US changes its stance once the Trump administration takes over, given that he has criticized the effectiveness of the "CHIPS Act." Whatever the case, it's safe to assume that the competition is only going to ramp up from hereon.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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