SOURCE / ECONOMY
Biden's call to revitalize chip manufacturing a 'strategic adjustment' to further contain China
Published: Apr 13, 2021 11:19 AM
A chip manufacture machine Photo: VCG

A chip manufacture machine Photo: VCG


US President Joe Biden calls for manufacturing semiconductors in the US to protect its supply chain and revitalize American manufacturing in a virtual event on Monday, which observers said reflects the Biden administration's strategic adjustment in further containing China by severing international industrial chain cooperation.

"These chips, these wafers… batteries, broadband - it's all infrastructure. We need to build the infrastructure of today and not repair the one of yesterday," Biden said at the event held to address the semiconductor shortage that has impacted key industries. "The plan I propose will protect our supply chain and revitalize American manufacturing."

"The Chinese Communist Party is aggressively planning to reorient and dominate the semiconductor supply chain," Biden said, citing a letter from senators and House members. China and the rest of the world is not waiting, and there's no reason why Americans should wait, he said.

Ma Jihua, a Beijing-based industry analyst, told the Global Times that the Biden administration adjusts its strategy to boost development of its high-end manufacturing sector so as to squeeze China from the international industrial and supply chain, as it found out that only crackdown on Chinese tech companies couldn't contain China.

"Washington has deemed chips as a weapon to contain China's tech rise and also as a key bargaining chip at the negotiating table," Ma said.

The US has elevated the development of the chip industry into a national strategy for political gains. Since February, the Biden administration has embarked on a review of key US supply chains, including semiconductors, aiming to make them less reliant on other countries.

However, observers said that the US will be unable to build chip manufacturing without years' effort due to difficulty in developing a workforce, and lack of a complete supply chain, and volatile market demand.

"US semiconductor companies will be neither willing nor able to abandon the huge Chinese mainland market," Ma said, noting that profit-seeking US companies will remain "in China, for China."

China accounts for roughly 45 percent of global chip demand each year, industry data showed.

Liang Zhenpeng, a senior industry analyst, told the Global Times on Tuesday that "the US ambition for high-end chip manufacturing sounds an alarm to the Chinese industry, reminding it of the urgency of building self-reliant high-end chip manufacturing industry."

Liang urged all domestic industry players to make long-term plans, including the cultivation of talent and capital investment, to seek breakthroughs in key chip products such as CPU, GPU and flash memory.

Global Times


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