Thread by @kevinsxu

"China’s Semiconductor Future: What Can $1.4 Trillion Buy?"

Enjoyed writing my 1st column on @thewirechina + working w/ @DavidBarboza2 to help simplify/demystify semiconductors & China's proposed 1.4T investment in that sector.

Some highlights...(thread)
thewirechina.com/2020/10/04/chi…

A semiconductor chip's life cycle is complex, though can be roughly broken down to 4 big stages:

- acquire raw material
- design chips
- marry the design to manufacturing capabilities
- produce at scale

Some stages can be accelerated w/ more 💰💰, i.e. raw material (China produce the most silicon of any country) & building huge chip fabs for mass production.

Others (e.g. chip design) require brain power, R&D, IP & long-term patience — things that money can’t buy.

China's current access to chip design IP (e.g. instruction set architectures), design software (e.g. electronic design automation or EDA) & high-end manufacturing equipment are all under sanction or could be.

Domestic or open source alternatives are all immature.

This trillion+ investment should still be taken seriously, but perhaps not so literally, if only because its literal value is less than meets the eye.

For more, please check out the entire column on @thewirechina 👇
thewirechina.com/2020/10/04/chi…