China’s next 5-year plan, stretching from 2021-2025, is said to put an extra focus on technology in an effort to reach semiconductor self-sufficiency. The plan’s goal is to increase China’s IC production capacity by 40% compared to the last plan and to advance the country’s manufacturing technology to 7nm.
China’s first Five-Year Plan ran from 1953 to 1957 and was an ambitious economic program. Ever since then China has continued to set up new goals with each iteration of the plan – soon reaching the 14th 5-year plan. One of the goals that stands out in the latest edition of China’s economical program is the increased focus on technology with the aim to become “semiconductor self-sufficient”.
The semiconductor sector has become more polarised during the course of 2020 as a result of the ongoing trade war, with many companies choosing to set up new plants either in the US or in China. At the same time some manufacturers have chosen to stop trading with Chinese companies as a result of US pressure. It’s therefore easy to understand that both states are opting to build up a solid foundation of foundries in their respective domestic territories to minimise the effects of the trade embargoes.
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KitGuru Says: The semiconductor business has grown more tense since the beginning of 2020. Do you think we will continue to see friction between the US and China for a long time to come?