A recent article titled ” The Cost of the U.S. Chip Ban on China ” analyzed in detail the disadvantages of the U.S. chip export controls on China .

The report pointed out that the U.S. government’s latest ban on China’s acquisition of the technology necessary to produce advanced chips is also prohibited from selling these chips to Chinese companies without permission and the equipment needed to manufacture these chips , thereby slowing down the development of its competitors in the field of high-performance chips . The process of achieving self-sufficiency.

Yet U.S. policymakers are unlikely to fully appreciate the corollary of bisecting the world’s semiconductor supply chain, which would be far more expensive for Western manufacturers and their customers. In addition, in the long run, the US ban on Chinese technology will increase the prices of various types of chips .

The United States accounts for 12% of the global chip market, but local companies cannot mass-produce high-end chips . Despite this lag, the United States maintains enormous influence over global chip supply, and many stages of the semiconductor production process—including chip design, research, development, manufacturing, and testing—rely on technologies that originated in the United States , making the latest This is especially true of the equipment needed for chips .

It is reported that the United States is home to the three major chip equipment manufacturers -Fanlin Group , Kelei and Applied Materials. Other Western equipment makers, such as ASML in the Netherlands, may not be directly subject to the U.S. ban, but that could change.

Murmann , a professor of engineering at Stanford University and an expert in chip design and machine learning , said, “The big question is how China will get the manufacturing equipment. The latest chips are made using a 5-nanometer process. The machines that make these chips have been developed for more than 15 years. China Not doing R&D on these early on was a very big mistake, and their time lag was huge.”

U.S. ban aims to maintain a roughly two-generation technology gap between China’s chip production capacity and the rest of the world , according to reports, and Mark Li, a Hong Kong-based semiconductor analyst at Bernstein, said the U.S. hinted that the restrictions would not grow with technological progress or time. Adjusted to the passage of time, the latest ban is now to maintain the largest possible lead, and this means that the scope of restrictions may be expanded over time.

The report mentioned that Chinese chip manufacturers will feel the most direct impact, and the wider group of Chinese technology companies will also feel the second-level impact.

In addition, the report argues that the risks posed by the latest U.S. export controls to Western manufacturers are twofold. On the one hand, China may implement its own technology export ban; on the other hand, China’s supply of low-cost chips to the West depends to a certain extent on the supply of chip manufacturing equipment and intellectual property rights. If China fails to replace its aging kit and intellectual property, its cheap chips may no longer work in the US or anywhere else. No matter how you look at it, costs will rise for Western manufacturers and their customers as China has quietly grabbed market share over the past five years for the cheap chips now used in nearly all consumer electronics and industrial equipment.

Donghwan Kim, chief executive of Hana Ventures, a technology-focused venture capital firm , said Chinese chipmakers are catching up much faster than anyone expected in terms of market share for mature-process chips , and China’s advantage lies in its Ability to sell chips at prices far below those of global competitors .

Finally, the report pointed out that the result of the US ban will be to push up the cost of all walks of life, from biotechnology, finance, autonomous driving to AI, and damage the competitiveness of Chinese products. American companies that have imported or used low-cost Chinese – made chips will also be affected. For example, the global surveillance camera market is dominated by Chinese companies, with Hikvision and Dahua controlling about 60 percent of the market. On the consumer side, China’s global market share in electric vehicles, smartphones, and cloud services has rapidly expanded.