Europe and the United States are worried about China's accelerated production of traditional chips!

[Global Times reporter Ding Yazhi] Since the US Biden administration introduced the policy of restricting chip exports to China in October last year, China has invested heavily in traditional chips that have not been banned in the semiconductor industry to achieve self-sufficiency. However, the United States' containment and suppression of China's chip industry has also continued to strengthen and upgrade. According to Bloomberg reported on July 31, China's accelerated promotion of traditional chip production comes at a time when Europe and the United States are discussing new policies to curb the development of China's chip industry.
It is understood that the world's most advanced semiconductors are currently produced using the thinnest etching technology, and the current technical level can reach 3 nanometers. Conventional chips, which typically refer to those made using processes of 28 nanometers and above, are used in products ranging from electric vehicles to military equipment. While the U.S. policy introduced last October slowed the development of China's advanced chip manufacturing capabilities, it largely did not affect China's ability to use chip technology at 14 nanometers and above. That has allowed Chinese companies to build new factories faster than anywhere else in the world. By 2026, China will have built 26 fabs using 200mm and 300mm wafers, compared with 16 in the United States, according to the International Semiconductor Industry Association.
Senior EU and US officials are concerned that China will dominate the market for traditional chips and dump them globally, driving foreign competitors out of business and leaving Western companies dependent on Chinese supplies, Bloomberg said, citing people familiar with the matter. People familiar with the matter also said that concerns about China's potential influence in Europe and the United States have led to further restrictions on the development of Chinese chips, and the United States is trying to prevent chips from becoming a bargaining chip for China. Senior Biden administration officials said that while no timetable for action has been set and information is still being gathered, all options are on the table.