The White House published a report which says, Chinese investment in US semiconductor industry will be a threat to the nation. John Holdren, a senior advisor to the President Barack Obama on science and technology issues, prepared the report. Obama administration finalized the report which wraps Chinese policy on investment in U.S. semiconductor industry. The report contains, Chinese investment in the semiconductor industry is a threat to the local chip manufacturers.
China’s blueprint to be the leader in the semiconductor industry
According to the report, China’s goal is to have the topmost place in the industry. As the report says, “…one stated aim of Chinese policy is for China to be at an ‘advanced-world-level [semiconductor capability] in all-major segments of the industry by 2030”.
The report further informed that “China’s strategy relies in particular on large-scale spending, including $150 billion in public and state-influenced private funds over a 10-year period, aimed at subsidizing investment and acquisitions as well as purchasing technology”. John Holdren opined that the policy Chinese semiconductor manufacturers are adopting a policy which is not positive for the United States. As a matter of fact, China’s investment in U.S. will obstruct the traditional invention flow. Additionally, the direct investment will put the country’s [U.S.] national security in danger by taking over the semiconductor market.
For the sake of ensuring the security of the industry, the report also contains several supplications. U.S. government signifies the semiconductor industry as one of the most important and potential sectors. However, such two-faced Chinese investment policy is quite questionable as China even does not believe in the open market system. In fact, many U.S. technology companies cannot operate their business in China. Nonetheless, China invests billions in U.S.A. Such self-centric policy impairs China’s image certainly.