China is preparing to take control of global legacy chips by flooding the markets with cheap subsidized products, former US Department of Commerce Under Secretary Nazak Nikakhtar told EE Times. The move mirrors the successful Chinese efforts to destroy the overseas competition in the solar industry.
US export controls, implemented in October last year, are aimed at denying China access to 14nm manufacturing capabilities. Partly as a result of these sanctions, Chinese chipmakers are doubling down on mid-critical and mature nodes. They’ll start dumping these chips on the domestic market, forcing out overseas competitors, and then do the same on a global scale, according to a senior fellow at the American Enterprise Institute (AEI).
Meanwhile, China will keep leveraging access to its internal market to get its hands on Western (manufacturing) technologies – until it doesn’t need those anymore. China is “getting pretty close,” in that regard, Nikakhtar claims. “Not only the chips but their manufacturing equipment.”
Nikakhtar, nowadays employed at a law firm, also contends that China is dumping lithium-ion batteries used in electric vehicles and consumer devices.