The high demand for chips in China can be a solution for the restrictions that the United States has just implemented, as per experts from the industry. 

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TOPSHOT - Employees make chips at a factory of Jiejie Semiconductor Company in Nantong, in eastern China's Jiangsu province on March 17, 2021. - China OUT

Chips Can Shelter Companies in China

After the United States imposed restrictions on China's progress in advanced chips, the domestic market of the country will launch a shield to protect the industry for the domestic semiconductor.

According to the South China Morning Post, this was announced by a group of industry insiders in the country during a forum at the Semicon China executive summit in Shanghai. This event conducted several forums, especially made for executives, researchers, and government officials, for them to share their insights.

Experts' Statements 

Semi China President Chu Lung stated that these restrictions that target the advancements and ambitions of the country would have an important effect on the country as he can sense a dangerous outcome for the whole industry. Chu was a former employee in KLA, a U.S. chip process control systems company.

China will be maintaining to open their market for the investors' support as per Shanghai Municipal Commission of Economy and Informatization Deputy Director Tang Wenkan. Currently, Shanghai is also planning to construct five industrial parks dedicated to chips despite high demand, which also focuses on mature node products.

Because of the progression of China's digital economy, the chip market of the country will be growing continuously, as stated by China Electronics Chamber of Commerce President Wang Ning. Amidst that, the United States adopted the mentality of a "cold war" for them to restrict the advancement of the country, and the government will still be supporting the semiconductor sector.

Lastly, Zhejiang University Professor We Hanming stated that adjusting the road map of the country is also a good solution for them to focus more on mature process nodes. He added, "Advanced process technology development is extremely challenging, so China's technology road map has to be refocused." 

Also Read: US-China Tech War: ASML, Lam Research Pulls American Engineers From China Amid New Chip Restrictions

US Restrictions 

According to a report from CNBC, international chip makers will have to apply for a license first if they want to sell the market advanced computing semiconductors equipment to China. These rules halted several companies' access to key tech, which started to be effective last month. Chip stocks also fell in China when the controls were implemented last month.  

"These rules make clear that foreign government actions that prevent BIS from making compliance determinations will impact a company's access to U.S. technology through addition to the Entity List," as per a released statement from the Bureau of Industry and Security United States Department of Commerce. The temporary license will be effective until April 2023. 

Related Article: China Boosts Chip Manufacturing Support Amid US Restrictions

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Written by Inno Flores