China will not be able to abandon imported equipment for chip production in the next ten years

China will not be able to abandon imported equipment for chip production in the next ten years
The Chinese company SMIC expected the introduction of sanctions from the United States, so in the second quarter it increased purchases of Japanese lithographic equipment. This does not fully solve the problem, but it shows the desire of the leading Chinese manufacturer to maintain the pace of development even in the face of increased sanctions restrictions.

Morningstar Equity Research experts quoted by CNBC claim that SMIC and other Chinese manufacturers of semiconductor components will inevitably suffer from us sanctions in the next three years. They will not be able to completely get rid of "American dependence" even in the next ten years, according to the source.

As an experiment, SMIC is already preparing to launch a production line that will produce 40-nm products without the use of American equipment. In three years, it plans to repeat the experiment with the development of 28-nm technology. Relying solely on Japanese suppliers in this situation would not be correct, since they also use American technologies, and therefore will be forced to comply with the US ban on cooperation with SMIC.

Independent Strategy representatives told CNBC that China's response to the sanctions against SMIC and the entire national semiconductor industry in its face will be measured. The Chinese authorities should not retaliate to harm their own economy. The business of any of the American companies operating in the territory of China may suffer. The initiative is still on the US side, as it has exacerbated tensions over Huawei's pursuit of pressure on Chinese mobile app developers (TikTok and WeChat), and now added to SMIC's problems. The Chinese side all this time limited itself to publicly censuring the behavior of the United States, but did not hurry with the introduction of "mirror and proportional" retaliatory measures.
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