【Japan Himalaya League】 Author: Zichen  Translator: Ganxieguoshu

According to a report by The Epoch Times on January 25, CCP’s experts revealed that the provision of chips in Communist China will continue to be tight, especially in the automotive chip sector, where the gap will reach 20%, which is due to its own backward technology and sanctions by the United States.

At the beginning of 2022, Communist China’s chip shortage continues to worsen. According to data fed back by foundries and chip manufacturers, the automotive-grade microprocessors, storage, logic, and analog chips they produce in 2022 can only meet the needs of 4 million new energy vehicles in Communist China. The Chinese Association of Automobile Manufacturers (CAAM) said that compared with the supply of chips, the new energy vehicle market will face a 20% demand gap in Communist China.

Most industry insiders believe that the chip shortage is due to the epidemic and the US crackdown.

However, Chengyin Yuan, general manager of the National New Energy Vehicle Technology Innovation Center in Communist China, told Bloomberg in January 2021 that the main reason for the shortage of automotive chips in Communist China was not the impact of the epidemic, but the lack of domestic technical knowledge and the ongoing geopolitical tensions.

Previously, the United States sanctioned Huawei twice in 2019 and 2020, blocking Huawei’s access to chips. As a result, the chip industry has risen to the forefront of the US-Communist China conflict.

Photo from The Epoch Time

At the Chinese Automobile Forum held in June 2021, Ye Shengji, chief engineer and deputy secretary-general of the Chinese Association of Automobile Manufacturers, said that as of now, in Communist China, the semiconductor self-sufficiency rate is 15%, of which the auto chip self-sufficiency rate is less than 5%. Among all kinds of chips, MCU control chips are the most in short supply because in Communist China, MCU control chip companies are the weakest.

A MCU (MicrocontrollerUnit), also known as a microcontroller or single chip, integrates peripheral interfaces such as memory (Memory), counter (Timer), USB, A/D conversion, UART, PLC, DMA, and even LCD driver circuits on a single chip, forming a chip-scale computer.

In addition, according to Deloitte survey data, the average demand for chips for gasoline vehicles is 934, while the demand for new energy vehicles is 1,459. At the same time, with the improvement of intelligence, the demand for new energy vehicles for perception, memory, storage, and computing chips has increased significantly.

It is reported that in addition to low production capacity, the chip level of Communist China is also far behind Europe and the United States.

At present, the most advanced mass-produced chips in the world are 5nm chips, and the representative manufacturers are TSMC, Samsung of South Korea, and Intel of the United States. In addition, TSMC and Samsung are working on the technology of 3nm chips, which is expected to be launched in the first half of 2022, while in Communist China, SMIC will only start mass production of 14nm chips in 2020.

The CCP government invested US $2.3 billion in at least six major chip construction projects in Communist China, including Wuhan Hongxin Semiconductor (HSMC) and Quanxin in Jinan, all of which failed.

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Edited & Posted by: Ranting