Chip Shot

🌈 Abstract

The article discusses China's efforts to develop a domestic semiconductor industry and become a global leader in this technology, drawing parallels to China's past successes in conquering other industries like electric vehicles and solar power.

🙋 Q&A

[01] Chip Shot

1. What is the key message or argument of this article?

• The article argues that China is following a familiar pattern of developing domestic capabilities in strategically important industries, just as it has done with electric vehicles and solar power.
• Despite Western efforts to prevent China from succeeding in semiconductors, the article expresses doubt that the US and its allies will be able to stop China from becoming the global leader in this technology.

2. What examples does the article provide to illustrate China's approach?

• The article describes how Chinese companies that are unknown in the industry begin appearing at conferences, asking questions and developing relationships with Western suppliers.
• These Chinese companies then release primitive products to compete in the domestic market, before suddenly launching a superior product that combines the best of the incumbent technology and undercuts international competitors on price and supply.
• This pattern has played out in other industries, with the West often seeming "blind to the game China is playing."

3. What is the significance of semiconductors for China?

• The article states that the development of a domestic semiconductor supply chain is a matter of "urgent national importance" for China.
• The US and its allies are actively trying to prevent China from succeeding in this effort, leading to rising geopolitical tensions.

4. What is the author's overall assessment of China's chances of becoming the global leader in semiconductors?

• The author expresses doubt that the US and its allies will be able to stop China from achieving this goal, stating "Count us among the doubtful."

[02] Conclusion

1. What is the key takeaway from the article?

• The article suggests that China is likely to follow a familiar pattern of developing domestic capabilities in strategically important industries, including semiconductors, despite efforts by the West to prevent it.