Vulnerabilities And Resilience In China’s Semiconductor Supply Chain: A Comprehensive Analysis

Zhengzhou No.7 Senior High School, Henan, China

^* Corresponding author: lifuyu@ldy.edu.rs

Abstract

Amidst the escalating global competition in semiconductor technology, this paper critically examines the vulnerabilities and strengths of China’s chip industry supply chain, juxtaposed against the backdrop of stringent U.S. export restrictions. Recognizing the strategic importance of semiconductors in national security and economic development, we delve into the nuanced dynamics of the ongoing trade conflict between Huawei and Qualcomm, two industry giants representing different continents. This analysis uncovers the root causes of the confrontation, highlighting the interplay between technological prowess and geopolitical strategies.Drawing upon extensive literature review and case studies, our research underscores the imperative for China to fortify its domestic chip ecosystem. We propose a multifaceted approach to optimize the supply chain, aiming to mitigate dependencies that exacerbate trade tensions. This strategy encompasses nurturing indigenous innovation, enhancing collaboration among stakeholders, and diversifying sourcing channels.The paper acknowledges its limitations, primarily the evolving nature of U.S. policies and the inherent challenges in accessing comprehensive data on proprietary technologies. Future research directions are outlined, emphasizing the need for continuous monitoring of policy shifts and the cultivation of a more transparent information exchange framework between competing nations.