Chinese chip makers began to refuse foreign orders for the sake of the domestic market

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One of the largest Chinese chipmakers warned that next year it may have to abandon orders from overseas customers to prioritize orders from local companies, as the PRC authorities insist on creating a “safe and controlled” supply chain. This is reported by the Nikkei Asia resource.

Hua Hong Semiconductor, the second largest contract chip manufacturer in China, has informed several of its foreign clients, including Taiwan’s Holtek, that it will not be able to provide them with the required manufacturing capacity. Hua Hong has warned that it may have to completely abandon some orders from non-Chinese chip developers.

China is grappling with global semiconductor shortages while trying to boost its technology self-sufficiency amid tensions with the United States. The demand for chips in China is huge and growing rapidly. SMIC, the country’s leading contract chip manufacturer, recently announced that demand for its semiconductor products is increasing as many Chinese companies, including leading smartphone makers, seek to use more locally made chips.

Industry sources report that in addition to securing the required supply chips for domestic use, China prioritizes its technology industry. For example, leading technology companies have gained priority access to electricity during recent supply disruptions. Companies such as Luxshare Precision Industry, Lens Technology and BOE have not been affected by power outages. They also did not touch SMIC, which in its financial report said that the authorities had assured the company that it would have enough electricity during the massive blackouts.

efforts to strengthen its internal chip supply chain. They urge chip makers to relocate the production of their most important products to the territory of the country. The US is in the process of approving a $ 52 billion budget to support the local semiconductor industry. The country’s president recently issued an executive order to stockpile defense equipment and raw materials to ensure uninterrupted supplies. Analysts believe the move could further exacerbate the global semiconductor shortage.

Source: 3dnews

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