United States of America and the History of Japan, It is chinesee the Chip Chip technology has reached the final stage in an important agreement to restrict its exports. But Japanese companies are concerned about possible threats of retaliation from China following these export restrictions. Well, China's chip production share of market What is it? What are the main objectives of the agreement? China USA and Japan The chip industry What are the possible retaliation strategies against export controls on it? China chip productionWhat are their strategic goals and what policies are they implementing to achieve them? What can be said about China's long-term chip production strategy? the Turkish Asian Center for Strategic Studies⁇ nden (TASAM) Prof. Dr. Sedat Aybar Thoughts on the subject Sputnik ⁇ e (disambiguation) He told me privately.
China is considering reducing its dependence on the outside in manufacturing in chip-using industries
Prof. Dr. Sedat AybaIndicating China's role in the global chip industry, he said that the country is considering reducing its dependence on outside production in chip-using industries.; “People of China⁇ in (disambiguation) the Chip IndustryIts global share has risen considerably, especially recently. China, which dominated 3 percent of the global chip market in 2010, increased its share to 5 percent as of 2022. Industries and products that use chips Considering the prevalence of the basis of China's production, this rate is not very much.. What this reality reveals is that the import dependence of the chips used in Çin ⁇ in products is high. Therefore, China will increase its chip production capacity from $10 billion in 2020. It aims to increase to 100 billion dollars by 2025. Thus, it considers reducing its dependence on imports and external dependence in the industries and production of products using chips. While China is reducing its import dependence, it wants to be a major player in the global chip supply chain by making such a serious breakthrough, especially to compete with Taiwan and South Korea in its region..”
China is implementing a series of policies to take over the scientific field in which the West is unquestionably superior.
Aybar, Talking about the Chinese government's incentives to the chip industry, “China is implementing a series of policies to take over the scientific field in which the West is unquestionably superior. He completes his thoughts on the subject with these words:
In order to achieve the goals of the Chinese government, In 2021, it invested $150 billion in the chip industry. Chinese companies producing chips were provided with tax reductions and Since 2020, large amounts of incentives have been provided for R&D studies through the Semiconductor Industry Development Fund. Chip production covers capital-intensive, high-tech production and labor processes. The sustainability of the technological infrastructure to carry out such production requires academic/scientific/intellectual advanced processes. This imposes a capacity building. The formation of such capacities, which are very expensive, and the scientific infrastructure did not exist in China until recently. The Chinese government is working to make breakthroughs in digital breakthroughs, technological applications that can land on the dark side of the moon, the use of Big Data, robotics, artificial intelligence, etc. In addition, he has recently made serious attempts to create a scientific/academic infrastructure. The resources allocated to R&D studies and efforts to transfer scientific publications to China should always be seen as part of these incentives. China is implementing a series of policies to take over the scientific field in which the West is unquestionably superior. China predicts that their output will produce a series of results for chip production.
The main issue of China is to be able to manage a very large economy without overthrowing it.
Prof. Dr. Sedat Aybar, China's long-term strategies “It aims to meet 70 percent of semiconductors with domestic production by 2025“ He stated in his sentence and “China's most important strategic goal, which feeds its appetite for such an increase in chip production, is to reduce external dependence on its production and thus to maintain its cost advantage in international competition. In particular, due to the increasing wages in the country, there is an effort to make its own economic internal and external balances sustainable behind its orientation to products with high technological added value. It is part of the desire to prevent the surplus economy from evolving into the deficit economy due to the increasing reality of total consumption at home. The main reason for the drive to promote chip production should be seen as a smaller part of the economic policy package to harmonize internal and external balances. This is different from the explanations that are emphasized too much in the West and emphasize the efforts to achieve a global leverage of power. The main problem of China is to be able to manage a very large economy with a very large population without overthrowing it. In addition, global power projections can possibly be explained in scenarios involving international relations. While all these scenarios are being set up It should be noted that Çin ⁇ in pursues policies such as supporting domestic companies in chip production, encouraging technology transfer and especially establishing international collaborations.“ He said it.
⁇ US and Japan's agreement to restrict Chinese exports causes a contraction in China's chip industry ⁇
Aybar, The U.S. and Japan said the agreement to restrict China's chip technology exports would cause a significant contraction in the Chinese chip industry if it came into force.
The fact that ABD ⁇ limits the export of high-tech semiconductors inevitably causes a significant contraction in China's chip industry. The main objective of this type of U.S. trade strategy towards China is to limit its military and strategic capabilities by blocking the access of high-tech semiconductors to China. In this way, Çin ⁇ in considers to control the situations where it can strengthen the semiconductor industry and reduce the impact of trade sanctions that can be imposed on it. ⁇
The U.S. predicts that if the deal is completed, China could lead to a contraction of up to 30 percent in the chip industry.
Prof. Dr. Sedat Aybar stated that the main goal of the new export controls planned by ABD ⁇ is to cause a contraction in the Çin ⁇ in chip industry and stated the following on the subject:
“The United States foresees that sanctions and trade controls could lead to a contraction of up to 30 percent in China's chip industry and does not want to lose this advantage. Therefore, the It also wants countries such as its allies South Korea, Taiwan and Japan to cooperate with it and restrict the export of high-tech semiconductors.. The U.S. provides financial and R&D support to help maintain the competitiveness of companies in this country, which is likely to be adversely affected by this situation. As a result of such supports, global chip supply times are projected to increase by 20-30 percent. Thus, further regional decomposition of the chip industry and the creation of independent semiconductor markets should be expected. ⁇
