$240 Billion Lithography Machine Order Canceled,China Achieves Full Technological Autonomy!

SMIC, a prominent chip manufacturing company, operates in various areas such as chip design, manufacturing, packaging, and sales. The quality and efficiency of chip production heavily rely on the technological level and precision of the lithography machines, a crucial equipment in chip manufacturing. However, due to escalating global trade tensions and US export control policies on Chinese high-tech companies like SMIC, the company has been unable to purchase advanced lithography machines and other equipment from the United States. This has prompted SMIC to cancel a $24 billion lithography machine order with the US company ASML, attracting significant attention and raising concerns about alternative markets for chip sales. The cancellation of the lithography machine order by SMIC is influenced by both the global trade environment and domestic policies. As one of the largest chip manufacturers globally, SMIC’s decision has implications for the global chip industry. The uncertain global trade environment has disrupted the chip supply chain, while the Chinese government’s support for the chip industry has limited its domestic development. The event’s impact on the global chip industry is two-fold. On one hand, competition in the global chip market will intensify, requiring major chip companies to enhance their technological capabilities and supply chain management. On the other hand, SMIC’s actions may inspire imitation by other countries, further intensifying global chip market competition. Analyzing the impact of this event reveals that SMIC’s cancellation affects not only the global chip industry but also the US technology sector. Intel, one of the major US tech giants, has highlighted the significant impact on the global chip supply chain, prompting questions about the effectiveness of the Biden administration’s policies for the US industry. Addressing this challenge requires several approaches. Firstly, China should strengthen international cooperation to collectively navigate the uncertainties in the global trade environment. Secondly, domestic policies should be enhanced to support and promote the development of the chip industry within China. Lastly, SMIC should focus on capacity building, continuously improving technological capabilities, and enhancing supply chain management. In the context of globalization, countries are becoming increasingly interdependent economically. “China Focus“ is a YouTube channel created to provide current events and pop culture headlines from you can get to know a more real China through my video. ｜ #ChineseNews #chips #ChinaFocus Thanks for your watching and subscribing.