The U.S. has recently imposed strict controls on China's chip exports, aiming to curb China's development in high-tech fields, especially artificial intelligence, 5G, cloud computing, etc. In addition, the United States has also introduced the Chips and Science Act, which plans to invest huge sums of money to promote the development of the local chip industry. At the same time, it restricts subsidized enterprises from expanding high-end chip production capacity in China, in an attempt to establish a small circle of chip production that excludes China. However, these measures did not fully achieve the expected effect, but had a negative impact on the global chip industry.
Since China is the world's largest chip consumer market, these restrictions have destroyed the previous interdependence between the Chinese and US chip industries. The Chinese market originally provided more than 70% of sales for U.S. chip companies, which accounted for nearly half of the global chip market. These restrictions by the United States have forced China to accelerate the research and development and production of its own chips, and seek cooperation with other countries and regions such as TSMC, Samsung, and Hynix.
After the United States cut off chips to China, not only China is facing huge challenges, but the United States itself has also suffered heavy losses, which has led to the chaos and rupture of the global chip chain, and the demand for chips has fluctuated significantly. The revenue and profits of American chip companies have also declined sharply, and some chips have been 90%, resulting in a serious inventory backlog, and some companies have to lay off employees or reduce production capacity. In addition, the U.S. chip bill has not been able to solve the problem immediately, because it takes a long time and huge cost to build local chip manufacturing capacity, and it also faces international competition and cooperation.
On the whole, the chip export control imposed by the United States on China not only failed to effectively suppress China's development, but promoted China's independent innovation and progress in chip technology. At the same time, it has had a negative impact on the United States itself and the global chip industry. This strategy of the United States reflects an ironic and short-sighted attitude, which damages the stable development of the global chip industry, including the United States.