0:00
microchips are used in everything from
0:03
smartphones to cars to
0:05
airplanes China is the world's largest
0:08
consumer of microchips but it is also
0:10
heavily dependent on Imports to meet its
0:13
needs in recent years China has made
0:16
significant investments in its domestic
0:20
industry however these Investments have
0:23
not been enough to catch up with the
0:25
United States and other countries as a
0:28
result China is losing the microchip War
0:31
China is losing the microchip War for a
0:36
including lack of access to Advanced
0:41
Equipment China does not have access to
0:43
the most advanced microchip
0:45
manufacturing equipment which is
0:47
controlled by a handful of companies
0:49
outside of China this makes it difficult
0:52
for China to produce the most advanced
0:56
microchips us sanctions the US has
1:00
imposed a number of sanctions on China's
1:02
semiconductor industry which have made
1:04
it difficult for Chinese companies to
1:07
access the technology and resources they
1:11
microchips intellectual property theft
1:15
China has a history of intellectual
1:16
property theft and this has heard its
1:19
ability to develop its own microchip
1:23
technology lack of domestic Talent China
1:26
does not have a large pool of
1:28
experienced microchip in engers and
1:31
designers this makes it difficult for
1:33
Chinese companies to compete with
1:37
Rivals as a result of these factors
1:40
China is heavily dependent on Imports
1:42
for its microchip needs this makes it
1:45
vulnerable to supply chain disruptions
1:49
sanctions in addition to the above
1:51
factors China is also losing the
1:54
microchip War because of its government
1:56
policies for example China's government
1:59
has prioritized the development of its
2:02
domestic semiconductor industry over the
2:07
decades however these government
2:09
policies have often been
2:11
counterproductive and have stiffled
2:15
Innovation China's government has also
2:17
been accused of supporting the theft of
2:19
intellectual property from foreign
2:21
semiconductor companies this has made it
2:24
difficult for China to build trust with
2:26
foreign companies and has made it more
2:28
difficult for Chinese companies to
2:30
access the technology and resources they
2:35
microchips as a result of all of these
2:37
factors China is losing the microchip
2:40
War to the United States and other
2:42
countries it is unclear when or if China
2:46
will be able to catch up
