Until recently China was perfectly happy to continue to purchase semiconductors from US and other companies. However the Trump Administration has placed enough road blocks for China, that it forces China to be develop a new strategy to ensure it will be able to source what semiconductors it requires for its industry.
Trump’s actions have crystallized to China that its aspirational vision of China contained within Made in China 2025 ,is the right direction for China to take.
Just as China is neck and neck with the US in some other technology like AI, etc; China will now provide the resources and motivation needed to no longer need to rely on American companies in this area.
Given the scale China could bring to the table, it is possible that China could drive down the price of semiconductors for the whole industry, thereby not only producing to serve itself, but also driving foreign companies into a new economic reality.
Could be another case of Trump’s geopolitics resulting in isolation of US industry from globalization leading to heart ache for US companies, that did not have to happen.
Sometimes in life the worst thing to happen is to get what you thought you wanted.
Trump’s actions have crystallized to China that its aspirational vision of China contained within Made in China 2025 ,is the right direction for China to take.
Just as China is neck and neck with the US in some other technology like AI, etc; China will now provide the resources and motivation needed to no longer need to rely on American companies in this area.
Given the scale China could bring to the table, it is possible that China could drive down the price of semiconductors for the whole industry, thereby not only producing to serve itself, but also driving foreign companies into a new economic reality.
Could be another case of Trump’s geopolitics resulting in isolation of US industry from globalization leading to heart ache for US companies, that did not have to happen.
Sometimes in life the worst thing to happen is to get what you thought you wanted.
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