Extreme Ultraviolet (EUV) lithography is a critical technology for manufacturing semiconductor chips smaller than 7 nanometers. For years, Dutch company ASML has maintained a global monopoly on EUV machines using the laser-produced plasma (LPP) method. However, since 2019, US-led sanctions have barred ASML from selling advanced EUV equipment to China, tightening restrictions further in 2024 to include EUV masks, etching machines, and other components.

China’s Innovative Approach to EUV

Chinese scientists are now pioneering alternative methods to bypass these sanctions. A breakthrough in EUV light generation has come from adopting the laser-induced discharge plasma (LDP) method, an innovative approach that avoids reliance on LPP technology. The LDP process involves vaporizing tin with lasers and using high-voltage discharge to generate plasma, which produces EUV light. This method is simpler, more cost-effective, and energy-efficient, though challenges remain in optimizing power output.

A significant milestone was achieved by the Harbin Institute of Technology under Professor Zhao Yongpeng, whose team developed a compact and efficient EUV light source using LDP technology. This innovation aligns with photolithography requirements and earned top recognition at the Harbin Provincial Innovation Achievement Competition.

Chinese Institutes make a Breakthrough

In January 2024, the Harbin Institute collaborated with the Shanghai Institute of Optics and Fine Mechanics to enhance EUV light focusing and control. Other institutions, such as Tsinghua University and Guangdong Bay Area Aerospace Information Research Institute, are advancing related technologies, including power optimization and future light sources.

Meanwhile, Shanghai Micro Electronics Equipment (SMEE) filed a patent in 2023 for EUV radiation generators, signaling progress toward domestic lithography equipment. However, SMEE lags behind global leaders like ASML, as it cannot yet mass-produce machines for chips below 28 nm.

Recent Progress and Strategic Investments

China is backing its chip-making ambitions with serious money, increasing its investment from $19 billion in 2014 to $41 billion in 2023. This investment is starting to pay off. SMIC, China’s biggest chipmaker, has already made 7nm chips for Huawei’s Mate 60 Pro smartphone. Another breakthrough is coming from SMEE, which plans to start making 28nm chip-making machines in early 2025. While this is behind the 3nm chips that global leaders can make, it’s still an important step forward.

These 28nm chips are useful in many products like cars and factory equipment, helping China rely less on foreign suppliers. This progress, along with China’s work on EUV technology, shows how the country is pushing ahead despite international restrictions.

Challenges faced by China in Chip Production

China’s semiconductor industry faces hurdles, including dependency on imported components and US-imposed restrictions. Despite this, the country’s multi-pronged approach, including technological innovation, collaboration, and strategic investment, demonstrates its resolve to overcome these barriers and achieve self-reliance in advanced chipmaking.

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China faces a challenging yet promising landscape in the high-bandwidth memory (HBM) chip market and the broader semiconductor industry, driven by surging global demand and strategic expansions.

High-bandwidth memory chips are experiencing a significant surge in demand, primarily driven by their critical role in AI applications within data centers. This growing demand is expected to contribute to an approximate 80% revenue growth in the global memory chip market this year, bouncing back from a low base in the previous year. The key players leading this market include SK Hynix, which holds a 50% global market share, followed by Samsung Electronics and the US-based Micron Technology.

China’s Position and Challenges

China accounts for 30-35% of global memory consumption. However, the country faces substantial challenges in producing high-end memory chips due to limitations in its semiconductor supply chain. Currently, China’s production capabilities are more suited to mid to low-end memory solutions. Consequently, as China’s AI ecosystem continues to expand, it will increasingly rely on imports, particularly from Korean memory chip producers.

Despite these challenges, China is actively working to strengthen its position in the HBM market. ChangXin Memory Technologies (CXMT) represents China’s leading hope for domestic HBM production. CXMT, in collaboration with TongFu Microelectronics, is developing HBM samples, although it may take up to four years for these products to reach the market. In the interim, China sees potential growth opportunities in lower-end memory products, particularly for AI edge devices such as autonomous vehicles, AI-enabled smartphones, and personal computers. By 2025, the demand from edge AI applications is expected to drive about 20% industry revenue growth.

External Challenges

China’s ambitions in the semiconductor sector are also constrained by external factors, including potential further restrictions from the US, Japan, and the Netherlands on developing HBM chips.

Strategic Expansion Amid US Sanctions

In response to fears of more US sanctions, Chinese semiconductor companies, including SMIC and Hua Hong Semiconductor Group, are ramping up their capacities. Investments are primarily focused on legacy chips used in applications like cars and consumer electronics. This year, China’s wafer fabrication capacity is projected to increase by 15% to 8.9 million wafers per month, with a further 14% increase to 10.1 million wafers per month expected next year. This rapid growth is set to make China account for about 30% of the world’s total wafer fabrication capacity, outpacing global growth rates.

Economic and Market Impact

The expansion efforts have led to a significant surge in sales of semiconductor wafer fab equipment in China, which saw a 48% increase last year compared to a mere 1% worldwide growth rate. Meanwhile, China’s imports of integrated circuits (ICs) dropped by 10.8% in volume and 15.4% in value.

Overcapacity Concerns and Domestic Advantages

Despite these aggressive expansions, analysts warn of potential overcapacity in the next two years, which could drive global chip prices down. Additionally, the Biden administration’s planned tariffs on $18 billion worth of Chinese imports, including a 50% hike on semiconductor imports, add to the complexities.

However, China’s drive towards self-sufficiency has benefited local foundries like SMIC and Yangtze Memory Technologies Corp. These foundries enjoy higher capacity utilization rates due to domestic substitution policies. For example, Hua Hong Semiconductor operates at maximum capacity and plans a 10% price increase in the latter half of the year.

Market Recovery and Demand

Local foundries in China are showing a faster recovery in capacity utilization compared to their global peers, supported by high customer demand during the traditional peak inventory stocking season. Recent price adjustments aim to alleviate profit pressures rather than indicating a full recovery in demand.

China is strategically expanding its semiconductor capacity to mitigate the impact of US sanctions and reduce reliance on imports. While rapid growth brings the risk of overcapacity, domestic policies, and self-sufficiency drives provide significant advantages, positioning China as a formidable player in the global semiconductor market.

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Beijing’s local government has introduced a subsidy plan to help local businesses buy Chinese semiconductors, especially GPUs, aiming to strengthen its computing capabilities and lessen reliance on foreign tech. This initiative comes as part of a broader effort to enhance the city’s smart computing capabilities by 2027.

Under the undisclosed subsidy scheme, local firms will receive financial incentives to purchase domestically manufactured GPUs, with the subsidies being proportional to the investment required for building computing services. The policy focus emphasizes the use of domestic-designed and manufactured GPUs, essential for high-performance systems in data centers, particularly for AI development projects.

Recent changes to US export regulations have made it difficult for Chinese companies to get their hands on advanced AI processors and semiconductor manufacturing gear. US trade sanctions have restricted companies like Nvidia from exporting sought-after components to China, prompting Chinese entities to seek alternative solutions.

Beijing’s smart computing initiative aims to support the training of both general and industry-specific large language models (LLMs), crucial for AI development. Access to advanced computing resources, particularly GPUs, is essential for AI development, driving Beijing’s subsidy scheme to ensure self-sufficiency in this area by 2027.

China’s strategic shift to become self-sufficient in AI technology

China is shifting its strategy towards promoting domestic production of AI chips over-reliance on international firms like Nvidia, Intel, and AMD. The subsidy scheme reflects a broader national strategy to encourage the adoption of homegrown AI chips, ensuring self-sustainability in AI semiconductor technology despite external restrictions.

Leading players in the Chinese AI chip market include Huawei, Alibaba, Baidu, and Tencent, with Huawei making significant advancements in AI chip technology. Other emerging companies are expected to gain market share with time and further development.

Beijing’s initiative shows its commitment to technological self-sufficiency amid escalating trade tensions and US export controls. Financial incentives provided to local firms aim to accelerate the adoption of AI processors, bolstering Beijing’s computing infrastructure and reducing dependence on foreign technology.

In addition to traditional semiconductor technology, China is also targeting advancements in silicon photonics and quantum computing chips to achieve full self-reliance on smart computing infrastructure by 2027. However, geopolitical tensions and potential expansion of US-led export restrictions pose business risks for chip makers and equipment suppliers like ASML.

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In 2023, China’s semiconductor sector faced formidable challenges as escalating US tech sanctions tightened restrictions on access to advanced chip-making tools and AI processors. The US, in October, extended export controls on semiconductor wafer fabrication equipment, strategically limiting China’s access to less advanced Nvidia data center chips. This move was part of a broader effort to curb China’s technological advancement, with the successful persuasion of Japan and the Netherlands to join in restricting exports of advanced semiconductor tools.

These sanctions exposed vulnerabilities in China’s chip supply chain, prompting the country to intensify efforts toward self-sufficiency in semiconductors. State funding supported initiatives for domestic production of less-advanced tools and parts, leading to notable progress. However, challenges persisted in developing high-end lithography systems crucial for advanced integrated circuits.

In a breakthrough, Shanghai Micro Electronics Equipment (SMEE), backed by state-owned Shanghai Zhangjiang Group, announced China’s first 28-nm lithography system. Though not on par with leading-edge EUV lithography systems, this milestone marked a crucial development for China’s focus on mature chip technology.

With Western restrictions on purchasing advanced tools, China is expected to continue investing in mature process nodes, particularly those at 28 nm and older technologies. By the end of 2024, the capacity for mature chip production is set to expand at 32 Chinese fabs, leading to a significant increase in China’s global share of mature capacity. TrendForce predicts China’s global share of mature capacity to reach 39% by 2027, triggering concerns from the EU and US.

However, the semiconductor market faced headwinds globally in 2023, impacting Chinese chip makers. SMIC experienced a 15% year-on-year decline in third-quarter revenue, while Hua Hong Semiconductor reported a 9.7% decline in revenue. The challenging market conditions were attributed to softening chip demand and elevated inventory of consumer and mobile devices.

In response to these challenges, the US Department of Commerce initiated a Semiconductor Supply Chain Review to address national security concerns linked to Chinese-sourced chips. The survey aims to identify how U.S. companies source legacy chips and is part of a broader plan to allocate nearly $40 billion in subsidies for semiconductor chip manufacturing. Commerce Secretary Gina Raimondo expressed concerns about China’s expansion of legacy chip production, framing it as a matter of national security.

China’s embassy in Washington accused the US of stretching the concept of national security and engaging in discriminatory treatment. The Commerce Department’s report revealed China’s substantial semiconductor subsidies, creating an “unlevel global playing field.” Raimondo anticipates significant semiconductor funding awards within the next year to reshape the US chip production landscape, emphasizing the importance of addressing non-market actions threatening the US legacy chip supply chain.

As China continues to navigate these challenges and the US aims to secure its semiconductor supply chain, the semiconductor industry is transforming, shaped by geopolitical factors, market conditions, and the pursuit of technological self-sufficiency.

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In a strategic response to the intensifying tech war between Washington and Beijing, several non-tech Chinese firms are rushing to acquire Nvidia graphics processing units (GPUs) for artificial intelligence (AI) development. Among them is Shenzhen-listed landscape designer L&A Design, signaling a trend that highlights the broader impact of geopolitical tensions on the global technology landscape.

L&A Design’s Strategic Move:

L&A Design recently disclosed a substantial investment, amounting to 435 million yuan (US$60.5 million), to acquire up to 128 units of Nvidia servers with high-performance GPUs through a subsidiary. The move aims to bolster the company’s AI capabilities and navigate the complexities arising from the US-China tech conflict. The purchase, facilitated by Shenzhen Runxin Supply Chain, is set to be completed in two phases, with 64 servers expected by 2023, and the remaining by the end of 2024.

Market Response and Nvidia’s Adaptations:

Following the announcement, L&A Design’s stock price surged by the daily limit of 20%, reflecting investor confidence in the strategic decision. In response to US sanctions, Nvidia modified its chips, creating the A800 and H800 variants tailored for Chinese clients. However, subsequent controls in October restricted the sale of these modified chips to China, necessitating companies like L&A Design to explore alternative sources for their AI development needs.

Diversification Beyond Tech Firms:

L&A Design follows in the footsteps of Lotus Health, a powdered flavor maker, which previously revealed a deal to purchase Nvidia H800 GPU-based servers from Chinese server maker H3C. This growing trend underscores the broader impact of the US-China tech conflict on industries beyond the traditional technology sector.

Global Impact on Nvidia:

As US export restrictions impact Nvidia’s lower computing power AI chip products designed for the Chinese market, the company anticipates a significant hit to its fourth-quarter earnings. With over 90% of China’s $7 billion market for AI chips, Nvidia faces challenges from established players and emerging Chinese chip designers.

Chinese Chip Designers Challenge Nvidia’s Dominance:

In response to Nvidia’s challenges, Chinese chip designers, including major players like Huawei and Tencent, are aggressively entering the AI chip market. Huawei’s Ascend 910B chip and Tencent’s Zixiao AI inference chip are positioned as alternatives, with Tencent actively promoting its offerings to attract Nvidia’s clients.

Market Opportunity Amid Restrictions:

Despite potential challenges in winning orders due to production capacity constraints, Chinese chip designers view the current situation as an opportunity. US export curbs inadvertently fuel China’s self-development capability, with Chinese tech giants prioritizing sustainability over performance and building AI ecosystems without reliance on US chips.

In essence, the rush of non-tech Chinese firms towards Nvidia GPUs signals a broader reshaping of the global AI landscape, driven by geopolitical tensions and the pursuit of technological self-sufficiency.

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In a landmark move, Qorvo the renowned US wireless connectivity chip company, has entered into a definitive agreement with Luxshare Precision Industry Co., Ltd. to divest its assembly and test facilities in Beijing and Dezhou, China. The transaction, expected to be finalized in the first half of 2024, marks a significant realignment in Qorvo’s global manufacturing strategy and underscores the broader trend of American tech companies diversifying their production networks.

Luxshare, a global advanced contract manufacturer and a key assembler for Apple, will acquire Qorvo’s operations, including property, plant, equipment, and the existing workforce at the Beijing and Dezhou facilities. Qorvo’s CEO, Bob Bruggeworth, highlights the historical significance of these facilities in supporting Qorvo’s highly integrated advanced cellular products.

Importantly, Qorvo is set to retain its sales, engineering, and customer support teams in China, ensuring uninterrupted service to its customers. Financial terms of the deal have not been disclosed, but Qorvo’s CFO, Grant Brown, emphasizes the alignment with efforts to reduce capital intensity and support long-term gross margin objectives.

The sale also includes a post-transaction supply agreement, wherein Luxshare will assemble and test Qorvo’s mobile phone products, reinforcing the strategic partnership between the two companies. Luxshare’s evolution from a computer cable assembler to a key player in Apple’s manufacturing supply chain aligns with the broader trend of American tech companies reducing reliance on China-based production facilities.

Luxshare’s recent wins, including securing orders for Apple’s Vision Pro mixed-reality headset, underscore the company’s growing ambitions and its increasing role in Apple’s product manufacturing landscape. The company’s expanded responsibilities came into focus following Foxconn’s Zhengzhou plant disruptions, leading to delays in iPhone 14 series shipments and influencing Apple’s decision to shift more work to Luxshare.

For Qorvo, the transaction is a calculated strategic move that reshapes its manufacturing footprint while maintaining a valued presence in China. As the deal progresses, it is poised to have a ripple effect on the global supply chain, contributing to the ongoing production shift from China to emerging manufacturing hubs in Asian countries such as Vietnam and India.

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Changxin Memory Technologies (CXMT), China’s leading dynamic random access memory (DRAM) developer, unveiled a significant technological breakthrough at the 69th IEEE International Electron Devices Meeting (IEDM) in San Francisco. The company showcased its prowess in advanced gate-all-around (GAA) transistors, a critical component for cutting-edge 3-nanometer grade chips.

CXMT’s presentation highlighted its design capabilities for GAA transistors, signaling a noteworthy achievement in the competitive landscape of memory chip production. Industry analysts have commended the company’s progress, especially its understanding of next-generation memory chip production.

Notably, CXMT faces challenges with US export restrictions, yet the company demonstrated progress despite trade limitations. Emphasizing the importance of the free flow of ideas for industry innovation, CXMT denied any violation of US sanctions or export controls.

CXMT recently announced the production of China’s first lower-power Double Data Rate 5 (LPDDR5) DRAM chip, positioning itself as a formidable player closing the gap with industry giants like Samsung and SK Hynix. The ongoing US-China tech war, marked by export restrictions on key chip manufacturing equipment, has not deterred CXMT’s pursuit of advanced semiconductor technologies.

The company, founded in 2016, has a strategic focus on high-bandwidth memory (HBM) chips crucial for AI applications and is actively developing next-generation logic chips using GAA transistors. Amidst challenges, such as US-imposed export controls on semiconductor-related technologies, including Electronic Design Automation (EDA) software, CXMT’s progress indicates resilience in the face of adversity.

In financial developments, Bloomberg reported a delay in CXMT’s initial public offering (IPO) due to volatile market conditions. The company now plans to raise funds privately at a valuation of approximately 140 billion yuan ($19.5 billion). The funds will be utilized to expand production capacities, aligning with CXMT’s anticipation of a memory market revival in 2024.

However, CXMT’s success in developing advanced DRAM technology may attract increased scrutiny and potential tightening of sanctions by the United States. With CXMT having received significant financial support from the Chinese government’s investment fund, American officials may scrutinize the source of funding, potentially impacting the company’s activities. 

CXMT’s strategic focus on positioning itself for growth in the semiconductor industry reflects its determination to navigate global challenges and emerge as a key player in the evolving landscape of memory technology.

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China’s import of integrated circuits (ICs) during the first seven months of 2023 has shown a 16.8% decline compared to the same period in the previous year. This data reveals a modestly improving trend, indicating a slow recovery in the country’s domestic chip market. Notably, this decline is less severe than the 18.5% drop experienced in the first half of the year, suggesting a potential turning point for China’s IC industry.

In a positive sign, China’s chip production increased by 5.7% year-on-year in June, contributing to the sector’s overall rebound. The contrast between the current performance and the previous year’s numbers is evident in the production of ICs during January and February. These months have seen a rise to 44.3 billion units, diverging from the mere 1.2% decrease recorded during the same period last year, as reported by the National Bureau of Statistics (NBS).

However, despite the volume decline in IC imports, July showed a glimmer of hope. China imported 42.4 billion IC units in July, a 2.6% increase from the previous month. The trade dynamics have led to intriguing shifts in imports from different nations. Imports from South Korea and Taiwan have decreased by 24.7% and 22.8% respectively, while chip imports from Japan surged by over 40% in June.

Interestingly, the economic value of chip imports has witnessed a more pronounced decline, plummeting by 21.6% to $191.3 billion for the first seven months of the year. These intricate fluctuations between volume and value underscore the evolving landscape of China’s IC market.

In the midst of global tech trade tensions, China’s efforts to bolster chip production and reduce dependency on imports are becoming increasingly apparent. The trajectory of IC imports, coupled with the rising domestic production, could reshape China’s role in the international technology trade arena. This unfolding narrative holds the potential for significant changes in the dynamics of the semiconductor industry. As China’s chip industry navigates complex trade dynamics, the measured progress in both import volume and domestic production signals resilience in the face of adversity.

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In a rush to beat trade restrictions, Chinese imports of semiconductor manufacturing equipment from Japan experienced a significant surge in June. According to non-public Chinese customs data reported by the chip industry portal Ijiwei on Thursday, imports of chip-making gear reached a staggering US$804 million in June, marking a 41.6 percent increase from the previous month. This surge in imports occurred despite a year-on-year decline of 10.5 percent compared to the same period last year.

The spike in imports comes in response to Japan’s recent imposition of tighter controls on the export of certain advanced semiconductor tools, which took effect on June 30. The move by Japan seems to be aimed at targeting China and follows similar export restrictions imposed by the Netherlands and the United States, both major players in the production of cutting-edge semiconductors.

Among the imported equipment, photolithography steppers, used for printing chip designs on wafers, saw an astounding growth rate of 137.1 percent, reaching a value of US$62.4 million. Additionally, the value of etching and stripping machines brought into Japan surged by a remarkable 370.1 percent, amounting to US$44.4 million.

The export controls imposed by Japan listed 23 types of semiconductor technology that are now subject to restrictions since July 23. This list includes critical advanced microchip manufacturing equipment, such as machines responsible for depositing films on silicon wafers and devices used to etch out the microscopic circuits of chips.

Yoshiaki Takayama, an analyst at the Japan Institute for International Affairs in Tokyo, explained that the restricted measures put in place by Japan complement the export controls initiated by the United States. With only a limited number of companies capable of manufacturing cutting-edge chips, China’s ability to produce advanced chips is expected to be seriously affected. Not only will importing advanced chips be difficult, but manufacturing them locally will also face significant challenges.

As a response to these trade restrictions, it is speculated that Beijing may shift its semiconductor strategy to focus on middle- and low-end semiconductor manufacturing instead of pursuing cutting-edge capabilities.

In conclusion, the rapid increase in Chinese imports of chip equipment from Japan in June reflects the urgency of local chip makers trying to stock up before Tokyo’s new export restrictions took effect. These measures are expected to impact China’s semiconductor industry and its ability to produce advanced chips, prompting possible shifts in its strategic approach moving forward.

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In the face of ongoing restrictions imposed by the United States and its allies on China’s access to advanced chips and technologies, the country has experienced a notable slump in its imports of integrated circuits (ICs). Newly released customs data reveals that China’s IC imports dropped by 18.5 percent in the first six months of 2023 compared to the same period the previous year, further exacerbating concerns about the nation’s semiconductor supply chain.

According to data published by the General Administration of Customs on Thursday, China’s imports of integrated circuits declined to 227.7 billion units during the first half of 2023, a significant decrease from the 279.6 billion units recorded in the corresponding period in the previous year. While this represents a slight improvement over the 19.6 percent drop observed in the first five months of 2023, it still highlights the challenges faced by China in meeting its demand for essential electronic components.

The customs data also revealed a considerable decline in the total value of chip imports, which fell by 22.4 percent to reach USD 162.6 billion during the first half of the year. This decline in value far exceeded the marginal 0.1 percent contraction in China’s overall imports for the same period, indicating the severity of the impact on the integrated circuit sector.

The sharp decline in China’s IC imports underscores the difficulties the country faces in securing the necessary components to support its rapidly growing technology industry. The ongoing restrictions imposed by the US and its allies have limited China’s access to advanced chips, which are critical for the development of cutting-edge technologies such as artificial intelligence, 5G telecommunications, and high-performance computing.

The data further emphasizes the urgent need for China to enhance its domestic semiconductor capabilities and reduce its reliance on foreign sources. The Chinese government has been taking proactive measures to strengthen its homegrown semiconductor industry through increased investment in research and development, as well as the establishment of semiconductor manufacturing facilities.

However, achieving self-sufficiency in chip production will take time, and until then, China may face continued challenges in meeting the demands of its technology sector. The decline in imports of integrated circuits serves as a stark reminder of the importance of a resilient and secure semiconductor supply chain for China’s economic development and technological advancement.

As the global landscape for semiconductor trade continues to evolve, it remains to be seen how China will navigate the complex web of restrictions and develop a sustainable strategy to address its chip supply concerns.

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Taiwan Semiconductor Manufacturing Company (TSMC), announced that it does not expect China’s recent export controls on gallium and germanium to directly affect its production. The Chinese Ministry of Commerce and Customs revealed on Monday that starting from August 1, a license would be required for the export of these rare metals due to security concerns related to the ongoing trade dispute with the United States.

TSMC, a crucial supplier for major tech companies like Apple and Intel, expressed confidence that these export restrictions would not have a direct impact on its operations. While the company did not elaborate on potential long-term indirect consequences, it stated that it would closely monitor the situation. TSMC the chip manufacturer with the biggest contracts worldwide, controls over half of the global output of silicon wafers, a vital component in semiconductors used in various applications ranging from consumer electronics to military systems.

The announcement by the Chinese government came as tensions between China and the United States continue to escalate. Beijing’s decision to restrict exports of gallium and germanium, two metals widely used in semiconductors and electric vehicles, is seen as a response to U.S. export restrictions aimed at limiting China’s access to critical technologies used in artificial intelligence.

Despite the geopolitical tensions, TSMC’s Chairman, Mark Liu, sought to allay concerns and highlight the potential role of Taiwan’s chip industry in improving relations between the two superpowers. Liu argued that if Taiwan’s chip industry thrives, it would have a positive impact on geopolitics. He emphasized that both China and the United States understand the indispensability of TSMC’s chips, which could lead to a more cautious approach in their actions. Liu expressed hope that TSMC and Taiwan’s flagship chip industry could contribute to stabilizing the tension between the two global powers.

Taiwan, a significant chip producer, plays a crucial role in the global supply chain, providing chips for smartphones, cars, and even military aircraft. With TSMC at the forefront, the island nation has emerged as a key player in the semiconductor industry. The company’s optimistic outlook regarding the impact of China’s export controls reflects its confidence in its ability to navigate the complex geopolitical landscape while maintaining stable production.

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