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China is attempting to achieve technological “self-reliance” | Nepalnews

wants Alibaba Group to enter the difficult and expensive business of designing its own processor chips in order to help the country become a self-sufficient “technology superpower,” according to the ruling Communist Party. This is a business that the world’s largest e-commerce company has never done before.

T-Head, Alibaba’s three-year-old chip unit, unveiled its third processor in October, the Yitian 710, which will be used in the company’s cloud computing business. For the time being, Alibaba says it has no plans to sell the chip to third parties.

Other rookie chip developers, such as Tencent, a and social media behemoth, and smartphone brand Xiaomi, are pledging billions of dollars in of the Chinese government’s plans to develop computing, clean energy, and other technologies that will help the country its wealth and influence around the world.

Processor chips are becoming increasingly in a wide range of products, from smartphones and automobiles to medical devices and household . In response to the coronavirus pandemic, shortages are disrupting global manufacturing and increasing concerns about supply.

A priority in the ruling Communist Party’s marathon campaign to reduce China’s reliance on technology from the United , Japan, and other suppliers that views as economic and strategic rivals is the development of chip manufacturing technology. It is possible that if it is successful, it will slow down innovation, disrupt global trade, and make the world poorer, according to business and political leaders.

According to President Xi Jinping, in a speech delivered in March, “Self-reliance is the foundation of the Chinese nation.” He urged China to develop into a “technology superpower” in order to ensure “ economic security” for the country.

“We must strive to become the world’s foremost scientific and technological center, as well as a global leader in innovation,” Xi said.

could be on the verge of a costly disappointment. Although the government has made significant investments, businesspeople and analysts believe that chipmakers and other companies will struggle to compete if they disengage from global suppliers of advanced components and technology. This is a goal that no other country is attempting to achieve.

“It’s difficult to imagine any one country rebuilding all of that while also having the best technology,” said Peter Hanbury, a Bain & Company industry analyst who follows the industry.

Beijing’s campaign is escalating tensions with the United States and Europe, which regard China as a strategic competitor and accuse it of stealing technological know-how. They restrict access to tools that are necessary for the improvement of its industries.

If the world were to decouple, or split into markets with incompatible standards and products, it is possible that parts made in the United States or Europe would not work in Chinese computers or automobiles. Those smartphone manufacturers who have one global operating system and two network standards may find themselves having to create different for different markets…. This could cause development to be slowed.

In September, UN Secretary-General Antonio Guterres stated that the United States and China must work together to “avoid that the world becomes separated.”

Smartphones and tablet computers are assembled in China, but components from the United States, Europe, Japan, Taiwan, and South Korea are required by the country’s manufacturers. Chips, rather than crude oil, are China’s most important import, accounting for more than $300 billion in sales last year.

Government officials became more concerned about this after Huawei Technologies Ltd., China’s first global technology brand, was denied access to US chips and other technology in 2018 to sanctions imposed by the Trump administration.

The telecom equipment maker’s ambition to be a leader in next-generation smartphones was severely hampered as a result of this. officials claim that Huawei poses a security risk and may be assisting Chinese espionage, an accusation that the company vigorously denies.

According to industry analysts, Huawei and some of its Chinese competitors are on the verge of matching Intel Corp., Qualcomm Inc., South Korea’s Samsung Electronics, and the United Kingdom’s Arm Ltd. in terms of their ability to design “bleeding edge” logic chips for smartphones.

TSMC, or Taiwan Semiconductor Manufacturing Corp., which manufactures chips for Apple Inc. and other global brands, is up to a decade behind industry leaders such as SMIC, a state-owned foundry in Shanghai.

Even companies such as Alibaba, which can design chips, will almost certainly require the services of Taiwanese or other foreign foundries to manufacture them. Alibaba’s Yitian 710 requires a level of precision that no Chinese foundry is capable of providing. The company did not disclose which foreign it will be relying on.

“My country still has a significant technological gap in chip technology,” said Liu Chuntian, an industry analyst with Zero Power Intelligence Group.

China has a 23 percent share of global chip production capacity, but only a 7.6 percent share of global chip sales.

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