14:25 GMT25 November 2020
Listen Live
    Asia & Pacific
    Get short URL
    by
    2150
    Subscribe

    Several key emerging technologies will facilitate China's growth in the semiconductor sector in the mainland's battle for technological self-sufficiency, the South China Morning Post reported on Monday.

    China is set to facilitate numerous opportunities in domestic semiconductors for 5G, artificial intelligence (AI), connected car and autonomous vehicles, officials at accounting consultancy KPMG said on Friday.

    “The Covid-19 pandemic has spurred market demand for 5G chips, memory chips and logic semiconductor products,” Jamie Li, partner at KPMG’s integrated chips intelligence industry group in Shanghai, said on the sidelines of the third-annual China International Import Exposition (CIIE) as quoted by the SCMP.

    Li added that the Chinese chipmaking industry would keep "sound and continuous" growth and become semi-autonomous over the next few years, but warned it would be unrealistic to reach full self-sufficiency in any country.

    “China has a huge consumer market to make technologies originating from universities and research institutes come to fruition,” Li said.

    KPMG vice-president, Gong Weili, said that China was reaching a major stage in technological progress, adding: “How to strengthen technological innovation and enhance overall competitiveness is a broad focus of the industry”.

    The statements comes after KPMG released its Chiptech 50 list of semiconductor startup firms with the potential to grow due to "good patents and products". Roughly 70 percent are based in the Yangtze River Delta region, consisting of Shanghai as well as the Jiangsu, Anhui and Zhejiang provinces.

    Most respondents in the KPMG survey were optimistic about China's semiconductor market due to the country's massive market in the global chipmaking industry, the SCMP said.

    But despite optimistic outlooks, the Information Technology Industry Council has warned US president-elect Joe Biden may continue Trump's policies via a multilateral approach and others measures.

    "Despite statements during his campaign underscoring the negative impact of China Section 301 tariffs, President-elect Biden has not indicated whether or when the Biden-Harris Administration would rescind them. The Biden-Harris Administration would likely re-engage with [US] allies to collectively push back against China’s unfair trading practices and supply chain security concerns rather than utilizing unilateral tariffs to address concerns around the United States’ goods trade deficit with China," the analysis read.

    The news comes amid the State Council's sweeping $1.4tn plan aimed at boosting the nation's domestic production of emerging technologies, including semiconductors, AI, infrastructure, green technologies, and others.

    Beijing has urged the reforms in its 14th five-year plan in a bid to reduce dependence on foreign tech firms.

    Numerous Chinese tech giants such as Huawei Technologies, Semiconductor Manufacturing International Corp, ZTE, TikTok's ByteDance and others have been targeted by the Trump administration, who cited national security risks and allegations the firms could use their technologies to spy for the Chinese government.

    Beijing, Huawei, ZTE and ByteDance have all repeatedly and strongly condemned the accusations as false.

    The first CIIE was held in 2018 and has aimed to boost trade liberalisation between China and global markets, as well as facilitating trade and global economic growth as part of the Chinese government's market reforms.

    Related:

    Huawei to Join Forces With Chinese Tech Companies to Limit Nvidia-ARM Buyout Deal Amid US Trade War
    US-China Chip Wars To Force Beijing To Adopt 'Warp Speed' Steps In Global Tech Divergence - Futurist
    US Cold War on China to End in Failure, Multipolarity to Replace Thucydides Trap Policy - Academics
    China Vows to Step Up Tech Self-Sufficiency in Five-Year Plan Amid Trade Tensions With US - Report
    Tags:
    trade, 5g mobile internet, 5G network, 5G, Artificial Intelligence (AI), tech wars, US-China trade war, KPMG, semiconductors, China
    Community standardsDiscussion