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Chinese Tech Giants Will Still Rely on Foreign Tools for Chip Making

China is heavily pursuing the chip-making business dominated by foreign tech giants. However, the country could still become reliant on what semiconductor titans offer to it.

Expert Says China Will Still Depend on Foreign Tools

(Photo : Brian Kostiuk from Unsplash )

According to an expert, China will still depend on foreign technology if they want to be competitive in the chip-making business. Read more about this article here.

According to CNBC on Sunday, Oct.24, China is still struggling to invade the semiconductor business against well-known companies. 

An expert claims that the nation still lags behind its foreign counterparts that’s why it still needs help from the international chip makers.

The tension has become more intense following the tight tech war between it and the United States. Indeed, the dominance in creating powerful and effective chips paves the way for many advancements in many fields such as smart home, gaming, and other industries.

Even though China has invested a lot in local chip development in the past, it still has a long way to go to catch up with other chip companies abroad. As of this day, the companies believe that a high-quality chip could dictate the country’s technological advancement.

Recently, Alibaba, one of the largest e-commerce firms in the world, has unveiled Yitian 710, its first server processor. According to the company, this chip is compatible with the latest Armv9 architecture.

In an interview with CNBC via email, Bain & Company’s Peter Hanbury said that what China is doing right now will drive it to be more self-sufficient in creating chips.

“Specifically, these are examples of locally designed chips but a lot of the IP [intellectual property], manufacturing, equipment, and materials are still sourced internationally,” Hanbury added.

Companies push developing their own unique set of processors for one reason: they want to manufacture a specific chip that will compliment particular apps. Moreover, self-sufficiency in the chip business would mean that a firm could compete with other semiconductor titans.

Read Also: Computer Chip Shortage Now in Alarming ‘Critical Point:’ Price Increase on Smartphone, Car Products to Happen This Year

Geopolitical Issues Hamper China’s Plans

According to a report by Business Insider, the supply chain crisis has become more difficult for China to cope up with the chip problems. There’s still ongoing tension between it and the US. The report also mentioned that China has been behind for many years from the US when it comes to cutting-edge technology. 

Taiwan Semiconductor Manufacturing Corporation or TSMC is currently testing the production of 3-nm chips and even smaller ones.

On China’s part, the Semiconductor Manufacturing International Corporation (SMIC) is just getting started. It was only in 2019 when it commenced making 14-nanometer processors.

Jingjia Micro to Release Two GPUs

Last month, Tech Times reported that Jingjia Micro, a Chinese manufacturer, was planning to release two graphics cards that could come at par with AMD RX Vega 64 and GeForce GTX 1080.

Over the past years, the China-based company was preparing for the development of its GPUs that could enter the domestic market. Besides the two above-mentioned chips, Jingjia Micro’s entry-level chip is allegedly close to the performance of the Radeon RX 560.

Elsewhere, Intel CEO believes that they should oust Apple in chip-making business if they want to win it back.

Related Article: Bosch China Believes Chip Shortage Will Push Next Year | Supply to Remain ‘Very Low’ in the Remaining Three Months of 2021

This article is owned by Tech Times

Written by Joseph Henry

ⓒ 2021 All rights reserved. Do not reproduce without permission.

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