SEMI Chairman: The United States should view China as a competitor, not an enemy

The United States continues to impose restrictions on China's semiconductor industry, which has evolved into a challenge facing the entire technology industry. After the US election, what impact will the US-China confrontation have on the semiconductor industry? Ajit Manocha, chairman and CEO of the Semiconductor Industry Association (SEMI), recently explained his views.

In an interview with CommonWealth Magazine, Ajit Manocha made it clear that, first of all, decoupling is not the answer to the current geopolitical tensions between China and the United States. Semiconductors are the technological foundation for improving the quality of life of people around the world, but the amazing complexity of new technology development has made the global electronic manufacturing and design supply chains served by SEMI more interdependent. The disruption of the global supply chain not only threatens innovation, but is also likely to undermine the leadership of American semiconductor companies. The United States should view China as a competitor, not an enemy.

Biden has been elected president, and there are many signs that the new administration will continue to put pressure on China through the semiconductor industry, but at the same time will pay more attention to international cooperation.

Ajit Manocha pointed out that if we look at the entire semiconductor manufacturing and design supply chain, in terms of semiconductor manufacturing equipment (SME), US suppliers are the market leaders, accounting for about 50% of the global market. In addition, the US also has a very strong position in design software. It can be said that the US is driving forward-looking technologies in the field of semiconductor manufacturing and design.

He also emphasized, "But I think no one should underestimate China's commitment and determination to achieve self-sufficiency in semiconductor manufacturing. The export restrictions we see today would have had a disastrous impact on China 10 years ago; but over the past 10 years, China's semiconductor industry has gradually developed and can remain competitive."

Ajit Manocha further said that from the perspective of government policy, what should be paid more attention to is that the unilateral export control of the United States may erode the competitiveness of American semiconductor product projects because these products are made with American equipment and design tools. The loss of revenue leads to a reduction in R&D expenditures for forward-looking technologies. In the long run, the US market share may also decrease due to the reduction in export volume.

It is worth mentioning that Ajit Manocha wrote a letter to US President Trump in early April this year, pointing out that the new US regulations to prevent Chinese companies from purchasing high-tech products such as semiconductors from the United States will damage local chip manufacturing equipment exports, and more than US$20 billion in US revenue will be affected, and the US technological leadership will be at risk.