At a semiconductor trade fair in Shanghai, industry insiders emphasized the need for global collaboration despite increasing trade tensions with the U.S. Executives highlighted the importance of international partnerships and innovation in the face of challenges posed by U.S. trade restrictions. While China aims for self-sufficiency in the semiconductor sector, these restrictions may drive advancements and breakthroughs within the industry.

Industry professionals participating in a semiconductor trade fair in Shanghai advocated for increased collaboration between the Chinese chip sector and international markets, despite escalating tensions with the United States. The Semicon expo attracted numerous visitors, with exhibitors showcasing a wide range of products, including silicon wafers, chip testing equipment, and adhesives.

China’s rapidly growing semiconductor industry has encountered significant pressure from the U.S. and certain European governments. Recently, Washington blacklisted numerous companies due to national security concerns, and President Donald Trump has committed to intensifying trade restrictions on Chinese chip manufacturers, urging allies to limit business with Beijing.

However, Xiao Jincheng, co-founder of Suzhou Zunheng Semiconductor Technology Company, expressed optimism, stating, “it is our dream to expand globally.” China’s efforts to achieve self-sufficiency in the semiconductor industry have led to substantial investments by the government, including billions allocated to a large chip fund.

Xiao emphasized the importance of global cooperation, asserting that in the future, collaboration across the global industrial chain will be necessary. This sentiment was mirrored by Ram Trichur, a semiconductor specialist at the German materials company Henkel, who noted, “Semiconductor innovation cannot happen in isolation. The ecosystem has to work together to be productive.”

At the trade fair, Chinese businesses displayed lists of foreign clients and expressed a desire for international partnerships, with one company inviting foreign agents to collaborate. Nonetheless, anxiety regarding U.S. trade limitations was prevalent, as multiple Chinese firms spoke cautiously about the subject. Zhou Dongdong, a product manager at Wuxi Evergrand Electronic Scientific Technology Co., remarked that U.S. restrictions have impacted operations but could also encourage breakthroughs within China’s chip supply chain.

Trichur suggested that the challenges posed by these restrictions might promote innovation among Chinese firms, potentially leading to significant advancements in front-end technologies. In the global economy, computer chips have become essential for a myriad of products, including household appliances and electric vehicles. While China is often seen as lagging behind the United States in access to advanced semiconductors, the recent launch of an AI chatbot by Chinese company DeepSeek demonstrates resilience amid U.S. trade constraints.

Despite these developments, challenges remain for Chinese chipmakers. For example, leading firm SMIC reported a dramatic decrease in profits for 2024 compared to the prior year, largely due to deteriorating trade relations between China and the United States.

The semiconductor trade fair in Shanghai highlighted industry calls for global collaboration amid rising trade tensions with the U.S. Despite facing significant restrictions, executives express a strong desire for international partnerships to foster innovation and growth. While China strives for self-sufficiency in the semiconductor sector, the ongoing challenges may ultimately catalyze breakthroughs within its supply chain. The situation remains complex, and the global semiconductor landscape continues to evolve amidst geopolitical complexities.

Original Source: www.kpvi.com

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