The Chinese regime seeks to become a technological superpower, so they have no qualms in pushing tech behemoths like Alibaba, Tencent, and Xiaomi to invest in exotic, complicated, and expensive chip designs, according to Liberty Time Net.
However, that is only the Chinese Communist Party leaders’ hard-won wish. Their technology is ten years behind world leaders such as TSMC. The CCP’s investments are manifestly inferior to those of the global giants.
TSMC’s investment in R&D and production is expected to reach $100 billion in the next three years.
Meanwhile, Beijing has pledged to invest $150 billion in the growth of China’s semiconductor industry over the next 16 years, from 2014 to 2030.
China’s semiconductor foundries, such as Shanghai’s large-scale state-owned producer SMIC, are far lag behind the world leaders, like TSMC. SMIC’s 14nm process is still improving, while TSMC, which supplies iPhone maker Apple and other worldwide manufacturers, has moved up to the 2nm process.
Even if China has chip design companies like Alibaba, they still need to rely on Taiwan or other foreign manufacturers for OEM production. Any Chinese foundry, for example, cannot attain the precision required for the Etian 710 chip.
In 2018, the U.S. sanctioned Huawei for allegedly creating a security risk and perhaps assisting Beijing with espionage. Since then, Huawei has been denied access to American processors and technology sectors. The CCP’s aspirations are likewise hampered as a result of this.