China is aiming to boost its semiconductor prowess by focusing on continuing self supply for its 5G base stations and servers. This move is expected to show positive results by the second half of 2021, as per industry sources.
According to a DigiTimes report, the Chinese government is placing emphasis more on the qualitative part rather than the quantitative aspect for upgrades for its semiconductor development. This, in turn, means that the government if shifting its focus away from the consumer centric market, namely mobile chipsets, and networking products, and is seeking to grow 5G and server based applications, as per a source close to the matter.
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China currently accounts for over 50 percent of the global supply fo infrastructures and server based chip solutions, which are relatively expensive with a price tag between 400 to 1,000 US Dollars. Thus, if Chinese chipmakers can raise their own self supply of such chips, the country will effectively become more independent and would lean away from foreign technology and influence from the west in the two crucial areas.
The source also mentioned that the Taiwanese based semiconductor supply chain is also expected to greatly benefit from China’s efforts to build its own semiconductor supply, as Chinese chipmakers will be closely cooperating with its Taiwanese partners for its IC design services and other various technical supports. So, in other words, China is going full speed ahead with its self dependency plans.
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