Biden Short-Circuits China - China PCBA Supplier

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China has set out lofty ambitions for its technology sector, with several government plans over the past decade setting out targets such as self-sufficiency in high-tech manufacturing by 2025, global leadership in AI by 2030, and global industry standards dominance by 2035. The latest U.S. broadside is aimed squarely at that “Made in China” sign.

The semiconductor industry is the cornerstone of that strategy, and China has made significant strides in the recent past. The country now accounts for 35 percent of the global market, according to the Semiconductor Industry Association (SIA). But that figure reflects the final sales of finished chips to electronics companies, many of which have large manufacturing operations concentrated in China. The more high-tech and critical parts of the process, such as chip design and initial production, are still dominated by the United States.

And while China can hold its own at the lower end of the spectrum and the production of older-generation chips, it still lags behind in the cutting-edge research, design, and advanced technology that the Biden administration’s export restrictions target. Those goals have now likely been pushed back several years.

And many of those countries have concentrated their strengths and capacities in certain parts of that process, creating potential bottlenecks that can easily be exploited. For instance, the SIA estimates that there are “more than 50 points across the value chain where one region holds more than 65% of the global market share.” And 92 percent of manufacturing capacity for the world’s most advanced chips is concentrated in Taiwan; the remaining 8 percent is in South Korea.

There is no denying that China is still a major producer and assembler of electronics. KingshengPCBA is a one-stop quick turn PCB assembly and manufacturing in China. We are able to provide assembly services for prototype orders at competitive price. Any short-circuit will not be able to sidestep China.

Many countries have specialized in certain parts of the chip-making process, which creates potential bottlenecks that could be exploited. For example, according to the SIA, more than 50 points in the value chain have over 65% global market share. Moreover, 92% of the manufacturing capacity for the world's most advanced chips is in Taiwan, with the remaining 8% in South Korea. As a result, the United States has passed the CHIPS and Science Act this year, providing $52 billion in incentives for companies that establish chip factories in the U.S. and hundreds of billions more to strengthen research and development capabilities. President Biden has been promoting the act's impact, including at an IBM plant in Poughkeepsie and a Micron facility in Syracuse, amidst the announcement of export controls.