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Issue Brief VII: The Long-Term Effect of the US-China Trade War On China’s Semiconductor Industry: By Deepak Srinivasan

Guided by Shri Arun Mamphazhy, Semiconductor Professional and Author

Image Courtesy: Reuters


Issue Brief: 07/202



C3S launched its Issue Brief initiative. An issue brief is a summary of the knowledge surrounding an issue or a problem. It summarizes the issue by giving clear, concise, and complete information describing all facets of a particular issue including a detailed illustration in the form of images, data, and facts. It also includes recommendations for action and predictions on the future course of an issue.


Abstract


In October 2022, the Biden administration imposed a set of export controls on China preventing their access to semiconductor manufacturing equipment from the US. These controls were the latest in a trade war between the US and China that had been going on since 2018 when the Trump administration imposed tariffs on Chinese imports. These trade barriers had a significant impact on China’s semiconductor industry and its goals to become self-sufficient in its production. This paper tracks the imposition of trade barriers by China, the US, and other countries in 2018 and how these have affected China’s semiconductor industry in terms of production capacity, cost of manufacturing, and most importantly terms of technological advancements made, which a field China was lagging in even before the trade war. Through this, the paper analyses the long-term impact of these trade barriers on the growth prospects of China’s semiconductor industry.



Read the full Issue Brief at this link

C3S Issue Brief VII (2)
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(Deepak Srinivasan is a Research Intern at C3S. He is pursuing his B.Sc. (Research) in Economics with a Minor in Mathematics at Shiv Nadar University. The views expressed are those of the author and do not reflect the views of C3S.)

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