China Ramps Up Chip Production Amid US Sanctions
China Launches Recruitment Drive
Overt Operator
August 25, 2023
China has initiated a recruitment drive to attract engineers from across the globe. This effort is further intensified by Huawei, a Chinese tech behemoth, with alleged plans to establish concealed semiconductor plants throughout the nation.
With the United States taking measures to restrict China's access to sophisticated technology, Beijing has been resolute in its commitment to prop up its semiconductor sector. This involves the revival of previous programs aimed at drawing in leading foreign-trained scientists to impart their crucial expertise.
A freshly launched scheme titled Qiming, helmed by China's Ministry of Industry and Information Technology, aims to parallel other local recruitment strategies. As revealed by sources to Reuters, these ventures highly regard candidates groomed in preeminent international institutions.
Meanwhile, as sanctions from the U.S. threaten its chip supply, Huawei is reportedly on a clandestine mission to set up semiconductor production hubs across China. The Semiconductor Industry Association (SIA) in the U.S. states that Huawei has acquired at least two pre-existing plants and is in the process of constructing a minimum of three more. Interestingly, this expansion seems to be under the banner of diverse companies, an alleged maneuver to shield Huawei's involvement.
This strategy might empower Huawei to dodge sanctions, enabling them to procure chip production tools and related resources that they'd otherwise be denied. Earlier this year, there was a call from Washington to completely halt the export of U.S. technology to Huawei.
However, China isn't the sole nation vying for semiconductor supremacy. As per Nikkei Asia, global chip producers are avidly purchasing pre-owned semiconductor equipment to meet escalating demands. This surge in acquiring used equipment began post-pandemic, highlighting the urgent need to address chip scarcity.
The used semiconductor gear market has historically accounted for about 10% of total sales. Yet, gauging its true size poses challenges. Estimates from Moov Technologies, a platform dealing in secondhand chip equipment, suggests the market could be valued close to a staggering $50 billion.
But there's a silver lining for China's tech firms. The U.S. has decided to prolong a one-year exception that permits South Korean and Taiwanese semiconductor companies to sustain their advanced chip and equipment exports to China. Initiated last year, this extension ensures giants like Samsung, SK hynix, and TSMC maintain their integrated circuit production operations in China. The overarching goal seems to be curbing further upheaval in the intricate global semiconductor supply network.