A siege broken? China’s processor sector under US sanctions
A siege broken? China’s processor sector under US sanctions

Author(s): Paulina Uznańska
Subject(s): Politics, National Economy, Supranational / Global Economy, Geopolitics
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: China; Chinese-US rivalry
Summary/Abstract: Processors are at the heart of the Chinese-US rivalry. They are among the key technologies in which the US holds such global dominance that it can slow China’s growth. The unprecedented export restrictions that the US introduced in 2022 were designed to hinder the growth of China’s semiconductor sector and prevent this country from manufacturing chips smaller than 14 nm. However, these sanctions have proved to be porous, allowing Chinese companies, which have benefited from extensive state support, to partially develop the production of relatively advanced semiconductor technologies. They have so far failed to achieve the 2–3 nm level that characterises the most advanced chips; they also remain dependent on imports of chip-making equipment. Nonetheless, the ultimate outcome of global competition in this industry will depend not only on the actions of the US and China, but also on the attitudes of other actors involved in international microprocessor supply chains, such as the Netherlands, Japan, Taiwan, and South Korea.

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