China is on track to make its own 28nm chips by late 2021, and 20nm chips by early 2023 without recourse to US fabrication technology and equipment.
Source: First China Made 28nm Lithography Machine Expected For Delivery in 2021
China is on track to make its own 28nm chips by late 2021, and 20nm chips by early 2023 without recourse to US fabrication technology and equipment.
Source: First China Made 28nm Lithography Machine Expected For Delivery in 2021
While U.S. companies can once again do business with Huawei, telecoms still can’t use its equipment.
Source: U.S. Partially Lifts Ban on Huawei, But Android’s Status Unclear | Tom’s Guide
Even if its companies can achieve self-sufficiency, that doesn’t mean they’ll be able to compete globally.
Source: Why China Is Likely to Lose Technology Cold War With U.S. – Bloomberg
For a case study of why the Pearl River Delta is trying to upgrade its manufacturing capacity, look no further than the Californian tech giant Apple. More than a decade ago a team of academics at the University of California looked at the value-creation in the making of an iPod. Their findings were that – while the iPod was assembled in China (by Foxconn, the Taiwanese contract manufacturer) – the lion’s share of the profits were earned in the United States. The researchers estimated that retailers were adding $75 in mark-up to the iPod’s $224 wholesale price. The unit costs for the parts for the iPod were about $144, paid mostly to Korean, American and Japanese suppliers. Apple was deriving the best returns with $80 in gross profit on each unit. And the factories in China that put the iPods together were at the bottom of the pile, with no more than $4 in contract fees. Four years later the researchers ran the same exercise for the iPad and the iPhone. The results were similar: only a
Robots, satellites, solar panels: which products will be hit by US tariffs in a US-China trade war?
Source: Made in China 2025