China goes on the offensive in the chip war

Abstract

The United States has sought to manage its technological competition with China by restricting Chinese access to advanced semiconductors and manufacturing equipment while bolstering domestic production. This strategy is being challenged by a two-pronged Chinese offensive. China is demonstrating unexpected progress in developing advanced processors despite export controls, while simultaneously moving to dominate the global market for “legacy” chips—older-generation semiconductors essential for critical infrastructure, industrial systems, and consumer electronics. This creates a dual risk for the U.S. of losing its technological edge in high-end computing and becoming dependent on China for foundational components. An effective response requires a multi-faceted approach. For leading-edge technologies, the “small yard, high fence” strategy should be maintained and reinforced by closing loopholes and expanding controls on upstream technologies. For legacy chips, where containment is impractical, policy should focus on diversifying supply chains with allied nations and enhancing security screenings to mitigate dependency. Finally, the U.S. must strengthen its own leadership in chip design through strategic government investment and industry collaboration. – AI-generated abstract.