Last night, the China Semiconductor Industry Association suddenly spoke out, and their words were very straightforward:
American chip products are no longer safe or reliable, and Chinese related industries will have to be cautious in purchasing American chips
The China Semiconductor Industry Association will uphold the fairness principles and industry consensus formed by WSC, and resolutely defend the interests of Chinese semiconductor enterprises and global supply chain partners
We call on enterprises in relevant countries and regions to strive to become reliable semiconductor product suppliers, and also call on the Chinese government to support the stable development of reliable semiconductor product suppliers
The window has been punctured!

The statement is nearly a thousand words long, sharp and straightforward between the lines.
In my opinion, this is a flattering article, with a feeling of being unbearable and even tearing one’s face apart.
Although it is the voice of the industry, is there another possibility? The government no longer holds any hope for the separation of politics and economy in the semiconductor industry, which means they have no intention of turning to the US government. They are determined to unify their internal ideas and wage a direct technological war.
At the same time, gather countries outside the United States to unite and jointly develop the semiconductor industry.
So, allowing the association to speak out and warm up will have a better effect. In the future, there is still room for the official to maneuver.
Also, the unwarranted blockade and suppression by the United States have reached a very shameless level, sanctioning 140 Chinese semiconductor companies and prohibiting American suppliers from shipping. This is equivalent to the US government sanctioning all companies related to chip design and production, from chip design software, raw materials, lithography machines to finished products, which have become parallel lines.

Is there still a way out for China to endure and compromise again and again?
Just a few hours before the association made its statement, China announced a ban on exporting gallium to the United States. Please note that this is a ban, not a regulation.
The byproduct of this aluminum industry, refining 6 tons of bauxite, can yield up to 500 grams of gallium, with extremely low production. Gallium is an essential element in the development of semiconductors and weapons, and I have previously written articles specifically on gallium and germanium.
Some people say that the United States can open its own alumina smelter. They have the capital and technology, but Americans will never make dumplings for a dish of vinegar.
If you say that the United States is a market economy, very free, even ghosts don’t believe it!
How can American society not eliminate the “zombies” and zero dollar purchases that fill the streets if this ruthless effort is put on cracking down on drug lords and illegal immigrants?
Looking at it from a different perspective, the extreme blockade imposed by the United States has precisely stimulated a breakthrough in the entire Chinese chip industry chain – the US government’s suppression has won votes and political benefits, but American chip manufacturers have lost economic benefits, while Chinese manufacturers have also suffered losses. They cannot buy lithography machines and raw materials, nor can they buy high-end chips. However, they cannot do business globally and are forced to develop their own chips.
A country with the largest research and development of chips is trying to encircle the largest consumer country, and most of these chips are used in finished equipment for export worldwide. Since they are forced to a dead end, they can only do their own research and development from start to finish.
China imported chips worth 440 billion US dollars in 2021, 420 billion US dollars in 2022, and reduced to 350 billion US dollars in 2023. This is the “masterpiece” of the US blockade.
The action to replace domestic chips began in 2020, without organization or agreement, but everyone did it. After the inventory of imported chips was depleted, the technical compatibility of domestic equipment was redesigned.
No matter what, no one is afraid of facing the same situation as ZTE and Huawei. The risk of using American chips is too high!
Why is the scale of imported chips still so large? Mainly high-end chips such as mobile phones, computers, servers, and artificial intelligence, which cannot be completely replaced at the moment.

Except for a few companies such as Qualcomm, Intel, and AMD, other American chip and supporting companies have almost lost the Chinese market.
We cannot buy high-end chips, and we cannot afford mid to low end chips.
Besides these, the replacement of domestic chips has long been completed.
For example, imported car chips used to cost over 100 yuan, but for the same quality, domestic chips cost 8 yuan directly. The replacement work not only solves the political risks from Europe and America, but also significantly reduces the development cost of automotive intelligence.
Even for ordinary household goods, the localization of key equipment is even more resolute. Power plants, substations, charging stations, smelters, shipyards, civil aviation, banks, and so on, do not require government orders to call for action. Most of them took action when the trade war began in 2018.
Our unit took action in 2013 when our superiors discovered that Cisco switches had backdoors. They immediately replaced them with switches from a certain domestic brand. Other electronic devices such as printers, shredders, scanners, fax machines, etc. from foreign brands were not allowed to access the network or were replaced with domestic ones.
The problem still lies in the chips, but before the China Semiconductor Industry Association spoke out, we knew that there were problems with American chips, but we silently replaced them. Now we are directly pointing out that their chips are unsafe and unreliable. So, lifting the back of the table indicates that we have overcome most of the challenges of self-developed and mass-produced chips.
At the same time, we express our attitude towards domestic enterprises – the action of completely domesticating and replacing American chips is almost completed, and the action is faster than everyone imagines!
In February 1953, the great Chairman Mao Zedong said at the Fourth Plenary Session of the National Committee of the Chinese People’s Political Consultative Conference: “We should not make a decision on how long to fight for the Korean War. In the past, it was up to Truman, and in the future, it was up to Eisenhower, or the future president of the United States, to decide. That is to say, they should fight as long as they want, and fight until complete victory
In today’s situation, the teacher’s words also apply!