What you need to know
- China has been making moves to bolster its domestic semiconductor industry so as to avoid obstacles such as U.S. sanctions.
- To accomplish its mission, China has been steadily building domestic mirror companies that, as that name implies, mirror functions of foreign rivals' businesses.
- At the same time, the country is also keen on enlisting companies such as Intel and AMD to forward its initiatives.
China has been aggressively pursuing domestic semiconductor efforts over the past few years in an effort to minimize technological exposure and dependency on foreign rivals. But, as independent as it's striving to be, it still wants a little foreign help, according to a new report.
As detailed by Nikkei Asia, China is set to launch its "cross-border semiconductor work committee" platform in the first half of 2022. It will exist to foster collaboration between companies inside and outside of China. Two foreign companies being pursued as part of that initiative are AMD and Intel.
Based on the report, the end goal of the committee and its collaborations is ultimately to "acquire advanced semiconductor technologies" from rivals such as the U.S., Europe, and Japan. As a result, it's unlikely foreign governments are going to take kindly to China's efforts, however lucrative they may be for the companies involved.
Here is a valuable factoid from the report: "China generated 26% of Intel's sales in 2020." Take that figure and contrast it with Intel's remarks about the need to end dependency on Asia, as well as Intel's negative comments toward Taiwan with regards to the China factor. Also take into account Intel's recent apology to China and the response said remarks drew from Marco Rubio.
Though China is keen on overall self-sufficiency, this report indicates its mingling with U.S. corporations isn't stopping anytime soon. And, on the flip side, though U.S. corporations often talk about domestic efforts as a priority, their actions can cloud such remarks.
