● Chip War Escalates

Global Semiconductor War: The Full Story of Changing U.S. Sanctions and China’s Semiconductor Industry Leap

1. Changes in U.S. Semiconductor Sanctions Strategy (Recent Policy Shift by the U.S. Government)

The U.S. government recently withdrew its AI chip export control policy.
The AI Diffusion Framework, which was scheduled to take effect in May 2025, was completely abolished.
Originally, the policy was intended to control exports by classifying countries into grades, distinguishing between allies and non-allies.
The main content of the policy was to prohibit AI chip purchases from U.S. semiconductor companies in Tier 3 countries such as China and Russia.
There are signs of a shift to a one-on-one negotiation system to coordinate technology and economic diplomacy issues with individual countries.
The U.S. aimed to curb China’s AI and semiconductor technology development, but sanctions have instead caused diplomatic friction with allies.
Nvidia CEO Jensen Huang warned that export restrictions would lead to competition for industrial leadership rather than military capabilities.
In addition, the reality is that U.S. companies are missing out on the Chinese market (worth about $50 billion), while Chinese companies are growing instead.

2. Leap of China’s Semiconductor Industry (Self-Sufficiency and Rapid Growth)

China has been strengthening its domestic semiconductor industry since 2014.
It aims to restore its semiconductor market share and achieve industrial self-reliance through ‘Made in China 2025’.
A total of 1.5 trillion won has been raised and invested in 2014, 2019 and 2024.
Concentrated investment in each field of semiconductor design, production (foundry), materials, parts and equipment (SoBujang).
Local foundry companies such as SMIC and Hua Dao gradually narrow the technology gap due to government support and investment effects.
Sales are rapidly increasing in the global market by expanding sales not only in advanced processes but also in mature processes.
Chinese companies are developing in various fields such as AI chips, memory, EDA software, deposition and atomic layer deposition equipment.
In particular, it is foreshadowing a major change in the global industrial structure by targeting the general-purpose semiconductor market.

3. Trends in Foundry and Other Fields (Investment, Technological Development, Global Competition)

About 195 trillion won of China’s foundry investment is poured into the foundry industry.
SMIC’s entry into the 7nm process and the production of Huawei’s smartphone chips and AI chips are representative examples.
SMIC and Hua Dao are increasing the production of mature process products and rising in the rankings in global sales competition.
Chinese memory semiconductor companies are also expanding their market share with various products such as HBM2 and DDR4.
In the SoBujang field, Chinese companies account for about half of the global semiconductor equipment market, and sales are expected to expand by 2027.
Technological localization achievements are also emerging in EDA and other core parts and equipment fields, strengthening the foundation for independence.
Despite U.S. sanctions strategies, China is increasing its competitiveness through technology circumvention and building its own ecosystem.
China’s aggressive pricing policy in the general-purpose semiconductor market is likely to pose a major threat to global top-tier companies.

Summary

The U.S. government withdrew its AI chip export control policy and shifted its sanctions strategy to a one-on-one negotiation method.
China has been promoting semiconductor self-sufficiency and technology reinforcement with strategies such as ‘Made in China 2025’ since 2014.
Foundry companies such as SMIC and Hua Dao are rapidly growing in mature processes, and are also laying the foundation for independence in memory, EDA, and SoBujang fields.
In the global economy, keywords related to semiconductors, AI, technological innovation, the U.S., and China play a key role, and the market landscape is being reorganized.
Changes in U.S. and Chinese semiconductor strategies are expected to have a significant impact on global industrial competition.

[Related Articles…]
Analysis of Changes in U.S. Sanctions
Trends in China's Semiconductor Growth

*YouTube Source: [티타임즈TV]

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