Chinese government’s 37 billion euro move to reorganize the semiconductor industry

Semiconductors have become an important pillar of the global economy and technological security. In this context, China announced an unprecedented investment of 37 billion euros to accelerate its technological autonomy, which has so far been hampered by the dominance of Europe and the United States. This strategic sector, embodied by companies such as ASML, the world leader in photolithography equipment, is currently at the center of intense competition. Beijing aims not only to catch up, but also to redefine the balance of power, aiming to achieve full independence. This effort could reshape the contours of global innovation and increase tensions in an already stressed market.

An unprecedented technology offensive

China has announced ambitious plans to counter growing technological and economic pressure from the United States and Europe. The project is based on a huge investment of 37 billion euros and aims to develop domestically produced lithography equipment, an essential technology for advanced semiconductor manufacturing. Currently, the field is still largely dominated by ASML, a Dutch equipment manufacturer that has a near monopoly on cutting-edge photolithography. Additionally, with this program, the Chinese government aims to reduce its dependence on foreign suppliers to avoid restrictions imposed by the US government.

This strategic move fits into our broader industry vision and is accelerated by achievements such as the launch of the Huawei Mate 60 Pro. In fact, this smartphone with domestically produced chips demonstrates China’s ability to overcome technological barriers despite strict international sanctions. This example reinforced the idea that the Chinese government can not only withstand external pressure but also innovate under unfavorable conditions. For many experts, this initiative marks a decisive turning point. This reflects China’s firm determination to achieve technological self-sufficiency in areas considered essential for economic and strategic development.

Towards a geopolitical redefinition of the semiconductor market

China’s technological ambitions are part of a dynamic that goes beyond simple industrial challenges. This escalating conflict between the Chinese government and the West over semiconductors reflects larger geopolitical interests. Therefore, controlling this critical technology, which is essential to both the civilian and military sectors, will ensure decisive influence over global innovation and strategic supply chains. This quest to master semiconductors has become a central pillar of national security policy around the world.

European leaders like ASML continue to play a dominant role. The Dutch company continues to innovate through the development of next-generation EUV equipment that can produce chips smaller than 2 nanometers. While these technological advances strengthen Europe’s position as an industry leader, they also increase the challenges China must face to close this technological gap. However, the Chinese government is not satisfied with simply bridging the gap. With significant funding, we are turning these challenges into a springboard for increasing autonomy and redefining power relations in this strategic industry.

This evolution raises serious questions about the future of the semiconductor industry. Will China succeed in questioning the technological superiority of the West? Or will this new momentum further exacerbate disruptions in global supply chains already under pressure from rising geopolitical tensions? What is clear is that this major investment heralds an era of intense competition in which innovation will become a strategic and economic tool. The outcome of this race could reshape the contours of the global economy and, in the long run, redefine the geopolitical balance.

Luc Jose A.

Toulouse Scientific Diploma and Certification Consultant Alila Blockchain Exam Rejoined 2019 Coin Tribune. Consider the potential of blockchain in the field of economics and learn economics with great sensitivity and engagement with informants in public safety and environmental systems and evolution. The month is about understanding blockchain and its opportunities. Analyze the purpose of reality, decipher trends in Marche, analyze innovative technologies and perspectives, and analyze social revolution in Marche.

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