The West is concerned about the wave of cheap Chinese chips

The Financial Times also said that the number of Chinese chips will increase by 60% in the next 3 years. For this reason, some experts believe that Western competitors will not easily withstand this onslaught.

China's chip manufacturing boom worries the West

GLOBAL TIMES SCREENSHOT

Professor Chris Miller, author of The Chip Wars and an expert on the global semiconductor market, shares the concerns of other industry experts who believe that the unchecked expansion of China’s core component makers could lead to overproduction and overstocked markets in the coming years. Despite lacking access to advanced lithography technologies, Chinese companies are aggressively increasing production volumes of rudimentary chips that are not subject to sanctions from the US and its allies.

While TSMC management has acknowledged the threat of global overproduction of complex chips, it has also said that this does not pose a direct threat to TSMC’s own business. TSMC CEO CC Wei said that in the field of advanced lithography, the company not only focuses on customizing technical processes to the needs of a specific customer, but also signs long-term contracts that guarantee stable profits. For this reason, TSMC is not only not afraid of competition from China, but can also increase capacity, even with older technology chips like 28nm.

Chris Miller believes that the acceleration of Chinese chips will not affect all segments of the semiconductor market, especially when Chinese chipmakers are not strong enough to attract customers compared to foreign competitors.

In addition, Western countries can continue to put pressure on Chinese manufacturers by restricting access to chip manufacturing equipment and can expand as needed.

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