Re-globalization and the rise of vertical supply chains

G. Dan Hutcheson

The Chip Insider®

Summary:

Re-globalization and the rise of vertical supply chains: Can it prevent WW III? It is now reasonable to believe that the decoupling of China from the supply chain outside its borders is real. This started the National People’s Congress introduction of “Made in China 2025” ten years ago. The progress, while slow, has been steady. Meanwhile, China’s pivot to its “wolf-warrior” stance led to a military buildup, pointing to a perceived threat of war at some point in the future on its part. Now the U.S. is responding with additional military enhancements as it mirrors the perceived threat.

Paradoxically, this has nothing and everything to do with semiconductors. Nothing because it’s about rising animosity between two countries. Everything because developing a vertical supply chain in chips was central to “Made in China 2025.”

This significance of chips to China’s efforts is that in this century they have proven on the battlefield to be an unbeatable advantage – what China might call an assassin’s mace: 杀手锏 or in pinyin a Shashoujian…

Happenings, Comments, Q & A: China’s EUV Capability … China at 7nm … SMIC’s 7nm Capacity: Hi Dan, any idea what SMIC’s 7nm capacity is? … Huawei’s Smartphone Profitable Production Scale…

"History never repeats itself but it often rhymes.” — as Mark Twain is reputed to have said

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