From the Factory of the World to a Technological Leader: China's Role in the Semiconductor Industry

The article is devoted to the transformation of China's role in the global semiconductor industry from the largest assembly center to a contender for global technological leadership. China, which has long dominated predominantly the low-tech stages of the global value chain, made unprecedented efforts between 2010–2025 to reduce the technological gap and reduce dependence on foreign chip manufacturers. The research was conducted on the basis of the concepts of technological leadership, technological sovereignty and industrial policy, as well as the theory of global value chains. The purpose of this study is to analyze China's role in the global semiconductor industry from the position of the largest manufacturing hub to a potential technological leader, evaluate the results of government policy, key achievements of Chinese companies, and identify the country's existing problems and prospects in the context of global technological competition. The paper examines government initiatives and programs, including large-scale strategies "Made in China 2025" and the National Fund for Investment in the Integrated Circuit Industry, aimed at developing its own innovation base and increasing the localization of semiconductor production. Special attention is paid to assessing the current state of the industry, analyzing the achievements of Chinese companies, as well as problems related to US sanctions, restrictions on access to key technologies, lithography equipment, and qualified personnel. It is concluded that, despite significant successes and large-scale government support, China has not yet achieved full technological autonomy. Geopolitical barriers and the continuing technological lag behind industry leaders remain significant obstacles to achieving this goal. However, the potential of the market, the constant growth of domestic demand, the level of investment and the strategic determination of China allow us to predict its further strengthening of its position in the global industry.

Semiconductor industry, China, Made in China 2025, Technological leadership, Microchips, Technological sovereignty, Sanctions, Investments, Innovations, Public policy