The South China Morning Post reports that the semiconductor industry in China is gearing up to face America in the era of Trump’s second term, employing various strategies such as accelerating chip production equipment imports, enhancing self-reliance capabilities, hiring skilled labor from abroad, and fostering relationships with countries that may have been overlooked by Trump’s protectionist trade policies, citing publications and research in the industry of over 30 pieces.
Sources from Reuters state that Chinese companies have now increased orders for semiconductor production equipment to the maximum extent possible to shield themselves from the impact of elections. Data from Chinese customs indicates that in the first 9 months of the year, the import of these goods amounted to $24 billion, up from 1 in 3 from the previous year.
Additionally, Zhu Jing, Deputy Secretary-General of the Semiconductor Industry Association in Beijing, has urged Chinese chip companies to strengthen their businesses overseas and expand to other countries, hinting that there may be a chance to reacquire certain types of chips if cooperation between the US, Japan, and Europe weakens under the Trump administration.
The positioning of Chinese chip companies this time around is much better than before, as there are plenty of examples indicating what may happen under the Trump administration. Nori Chiou, Director of Investment at White Oak Capital, stated, “This time, China is more prepared than during the trade war in 2018, including the upcoming elections in 2020.”
TLDR: Chinese semiconductor industry prepares for potential challenges posed by America under Trump’s administration, bolstering strategies and international expansion amidst increasing tensions.
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