Morgan Stanley: US controls technology, China's semiconductor industry is forced to make steel using primitive methods

A Morgan Stanley report recently pointed out that the United States still has "selective control" over China's semiconductor industry technology exports. At the same time, China's power semiconductor industry has taken another step forward in developing localized supply of silicon carbide (SiC).

On November 24, the U.S. Department of Commerce added 12 Chinese companies, including Hangzhou Zhongke Microelectronics, Hunan Guoke Microelectronics, and H3C Semiconductor Technology, to the export control list due to concerns about national security.

This is consistent with Morgan Stanley's estimate of "selective control", that is, certain sensitive technologies, such as 5G, supercomputers, and 14nm processes, are still restricted from export to China. As for the impact on Goke Micro's supercomputer chip supply chain, Morgan Stanley believes that the impact on Alchip-KY, which provides design services, and TSMC, which does foundry work, is limited.

While the United States restricts technology exports, China is actively developing its domestic semiconductor industry. According to China's Luxshare Technology, it will supply 150,000 6-inch silicon carbide substrates to Tianyu Semiconductor (TYSiC) from 2022 to 2024.

China's leading chip manufacturing company Semiconductor Manufacturing International Corporation (SMIC) announced that the China National Integrated Circuit Fund (Big Fund) Phase II will invest US$531.3 million in SMIC Shenzhen. It is reported that China's Big Fund Phase II currently holds 24.49% of SMIC Beijing, 16.77% of SMIC Shanghai and 16.7% of SMIC Shenzhen.