Why did China give up semiconductors?

Because the actual demand for semiconductors in the world is mostly in the last generation of technology.

Due to the technical unavailability of general-purpose products above 10 nm, the shortage of semiconductors has made automobile and consumer electronics manufacturers all over the world lament.

Because of China's investment in equipment, perhaps in three or four years, the global market will be full of the last generation of low-cost and high-quality semiconductors made in China. What the manufacturing industry needs most are power semiconductors, sensors and analog components for controlling motors. The linewidth is only 28, 40 and 65 nanometers. This will not change because of the popularity of electric vehicles (EVs) and the proliferation of data centers.

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If it is the last generation of semiconductor technology, it will not be restricted by security. Outside the regulatory framework of the United States, China manufacturers are almost free to export to all parts of the world. "Nano-competition" seems simple, but it ignores the price destructive power from China.

This is reminiscent of the former steel industry. Some large steel enterprises in Japan and even in the world were eliminated by China's overwhelming productivity. Although he won in technology, he lost in the market. What needs to be concerned is whether this history will repeat itself in the semiconductor industry.