ABSTRACT
This paper examines the semiconductor’s industry growing importance as a strategic technology in the modern industrial system and in contemporary warfare. It also analyzes this industry’s evolution in China and the Chinese semiconductor industrial policy over the last years. We review the Chinese interpretation of the ‘revolution in military affairs’ and China’s perception of its backwardness as well as the possibilities of catch-up and evolution in the most sophisticated segments of this productive chain through domestic firms and indigenous innovation.
KEYWORDS:
China; industrial policy; semiconductors; strategic trade; technological change
Sources: Authors’ elaboration based on data extracted from SIA (2014, 2016, 2017) and ITA (2016).
Notes: (1) Overscript (a) represents a series break in 2009 and (b) represents series breaks due to revised industry statistics. (2) Semi stands for semiconductors; OSD, for opto-sensor-discrete; IC, for integrated circuits; AP&T, for assembly, packaging and test. (3) Semiconductors is the aggregate of the OSD and IC segments. (4) Self-sufficiency ratio is the ratio of production over consumption in China. (5) All data include both foreign and domestic firms. (6) IC design revenues for 2016 were obtained from PwC (2017a) by multiplying the percentage of design revenues in overall industry revenues, while the percentage over world fabless revenues was obtained dividing PwC data by ICinsights (2017) worldwide fabless revenues. Source: PwC (2004, 2007, 2008, 2010, 2012, 2015, 2017, 2017a), ICinsights (2017)
Source: Adapted from PwC (2017a).