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China's Chip ambitions challenged by technological hurdles

BNE News Desk , September 27, 2024
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Beijing:  China's ambitious efforts to counter U.S. chip restrictions are facing significant technological challenges.Despite massive investments and state support, the country's ability to manufacture advanced semiconductors remains limited due to the complexity of the underlying technology.

The crux of the issue lies in lithography scanners, crucial equipment for producing intricate chip designs. Netherlands-based ASML is the sole provider of these advanced machines, but U.S. pressure has restricted their sale to China. This has forced China to invest heavily in developing its own lithography technology, but progress has been slow.

While China has made strides in improving its lithography capabilities, it still lags far behind ASML's most advanced machines. Experts suggest that a substantial technological breakthrough would be needed for China to bridge this gap.

Meanwhile, ASML continues to sell less advanced equipment to China, indicating that the country still relies on foreign technology. The U.S. is also actively working to bolster its domestic chip industry, further widening the technological divide between the two nations.
China's efforts to catch up in the semiconductor sector are hindered by the intricate nature of the technology and the need for a highly skilled workforce. While the country has shown success in other industries like electric vehicles, the chip industry presents a more formidable challenge.

As the U.S. continues to impose restrictions on China's access to advanced technology, the country's ability to achieve self-sufficiency in semiconductor manufacturing remains uncertain.