China’s semiconductor industry is preparing for a challenging period with Donald Trump’s return to the U.S. presidency. Industry players are strategizing to reduce dependence on U.S. technology by increasing foreign chipmaking equipment purchases and seeking skilled talent from overseas markets. This approach is a key step towards resilience.
Trump previously targeted major Chinese companies, like Huawei and SMIC, restricting their access to critical U.S. technology. With a renewed administration, Chinese chipmakers are anticipating similar restrictions and potential tariffs. However, industry experts believe that China’s semiconductor sector is now better prepared than during the 2018 trade tensions.
Chinese companies are not only looking to bolster their talent pool but also aiming to form stronger alliances with countries and companies who may be alienated by U.S. policies. This move could bring new opportunities for China’s chip sector if global partnerships shift under the new administration.
Zhu Jing, a leading figure in China’s semiconductor association, encouraged companies to expand globally and attract overseas talent, particularly if U.S. policies limit Chinese professionals’ access to American firms. According to him, there’s potential for growth in talent and collaboration under Trump’s administration, despite anticipated hurdles.
In response to escalating restrictions, China is heavily investing in advanced lithography equipment crucial for chip production. From January to September, semiconductor equipment imports grew by a third, amounting to $24.12 billion. Most notably, Chinese firms imported $7 billion worth of machines from the Netherlands to ensure their capacity for high-tech chip production.
While new U.S. export controls and tariffs may emerge, industry leaders believe self-sufficiency and innovation will help China’s semiconductor sector remain competitive.
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