Excluded from M&A, China Focuses on Expansion

Alan Patterson, EETimes
4/2/2018 09:01 AM EDT

TAIPEI — Uninvited to the recent M&A party for the global semiconductor industry, China has been instead looking to build its own bustling ecosystem, a complete domestic supply chain including design, manufacturing, materials, and equipment.

The nation is betting it may have a market big enough to do everything on its own. China appears undaunted in its efforts to become a key chipmaking nation. Even so, the gap between the nation’s semiconductor imports and exports continues to widen. Despite the rapid growth of China’s domestic semiconductor industry, the nation imported $260 billion in chips but exported only $67 billion in 2017, ballooning imports to $193 billion from $166 billion in 2016.

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