The United States upgraded the "chip war" to hit the global semiconductor industry

Recently, the United States "chip war" against China has a great escalation of the trend - first, the Netherlands and Japan, under pressure from the United States, agreed to start the export control of semiconductor manufacturing equipment to China; Later, foreign media reported that the US government is considering cutting all ties between US suppliers and Huawei, and banning US suppliers from providing any products to Huawei. The Biden administration is also preparing to unveil an executive order that would limit U.S. investment in sensitive Chinese tech sectors... Soon after the beginning of 2023, the United States has made bad moves to curb the development of China's semiconductor-related industries.
In recent years, the United States has never stopped cracking down on the development of China's "core", while accurately suppressing the semiconductor production and supply chain to China, while building a "de-Sinicized" semiconductor industry chain alliance, and attempting to completely "throw off" China in the advanced semiconductor industry. Whether it is to draw South Korea to establish a "technology alliance", or to establish a chip "quartet alliance" with South Korea, Japan and Taiwan, China, or to establish a semiconductor industry chain "small circle" through the US-Japan, India-Australia "four-sided mechanism" and "Indo-Pacific Economic framework" mechanisms, the United States introduces political, camp and weaponized means into the semiconductor industry. It attempts to build a closed production and supply chain cycle led by the United States, so as to make up for its shortcomings in the field of chip manufacturing and maintain its dominant position in the global chip industry.

However, the United States fanfare against China "core tactics", but also "hurt the enemy a thousand self-damage 800." Recently, the well-known US chip manufacturing equipment supplier Fanlin Group announced that due to the latest round of chip manufacturing equipment export ban to China, the group will lay off 1,300 full-time employees, and plans to lay off 1,400 temporary employees in the next two quarters. Global lithography giant ASML Holdings of the Netherlands recently warned that banning the export of semiconductor manufacturing equipment to China could lead to a rise in semiconductor prices. According to US media analysis, after the US government brutally suppressed China's chip and semiconductor industries, many US companies suffered, including electronic design automation tool developers, chip designers, wafer manufacturing equipment manufacturers, chip manufacturers themselves and so on.

The so-called suppression of China's advanced semiconductor industry by the United States has dragged down the global semiconductor industrial chain and supply chain. The semiconductor industry is a high-tech and knowledge-intensive industry, which has long formed a closely connected global semiconductor industry chain. According to professional estimates, based on specialized division of labor, the entire production process of semiconductor products needs to cross the borders of countries more than 70 times, and the whole process reaches 100 days. Although the United States has a strong semiconductor industry foundation, it is relatively weak in manufacturing capacity, especially in advanced process technology, and relies heavily on East Asia. Even if the United States tries to guide the advanced chip production and supply chain to the "small circle" regional development led by the United States, the regional distribution and interdependence of the global semiconductor related industries is difficult to change. The United States has strongly "reshaped" the "de-Sinicized" semiconductor industry chain, hitting the global semiconductor industry hard.

The chip is the core of the global future industry, and the development of the chip industry cannot be separated from the joint participation of countries around the world. In recent years, the United States has taken a series of unilateral actions, including the Innovation and Competition Act, the America Competes Act 2022, and the Chip and Science Act, to consolidate its technological leadership by leveraging its technological hegemony. It has been "benevolent and coercive" to its Allies, enticing chip manufacturers such as Intel, TSMC, and Samsung to set up factories in the United States, and vigorously ensuring the global leadership of the United States in the chip field.

In the short term, the United States has indeed created trouble for the development of China's chip industry and related industries, and has reaped practical benefits. However, in the long run, the United States hysterically suppressed, forced the Chinese chip industry to continue to break through, and lost the huge Chinese market, which will ultimately greatly weaken the innovation willingness and innovation ability of American technology companies, and damage the development of the global chip industry.