Here’s How China Is Achieving Global Semiconductor Dominance

    Greg Levesque

    Security, Asia

    A researcher plants a semiconductor on an interface board during a research work to design and develop a semiconductor product at Tsinghua Unigroup research centre in Beijing, China, February 29, 2016. REUTERS/Kim Kyung-Hoon

    Developing a world-class semiconductor industry is a cornerstone of the “Made in China 2025” plan.

    China is adapting to a range of new legislative efforts to curb its acquisition of cutting-edge technologies in the United States and Europe. Last week, the Chinese government launched a price-fixing investigation into Samsung Electronics, SK Hynix, and Micron—three companies that collectively account for ninety-six percent of global dynamic random-access memory (DRAM) production. It was also announced that the state-funded Hou An Innovation Fund acquired a controlling interest in the China operations of ARM, the world’s leading semiconductor IP provider. Hou An Innovation Fund purchased that controlling stake in ARM from Japan’s Softbank to the tune of $ 775 million. Furthermore, China’s Ministry of Science & Technology was involved in forming that $ 800 million Hou An Innovation Fund with funding from the Silk Road Fund, CIC, Singapore’s Temasek Holdings, and the Shenzhen municipal government.

    These most recent moves demonstrate China’s evolving tactics and determination to acquire the technologies necessary to transform the country into an innovative and technologically advanced superpower. Beijing isn’t about to let foreign lawmakers obstruct their grand plans.

    Developing a world-class semiconductor industry is a cornerstone of the “Made in China 2025” industrial strategy and numerous technology industry plans. It serves economic development and military modernization agendas. Yet, after years of being blocked from acquiring the capability overseas, the Chinese government appears to be adapting, deploying a “by all means necessary” strategy to achieve self-sufficiency in semiconductor R&D and production.

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