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Refine the Industrial Development Policies for a Safer and Sounder Semiconductor Supply Chain (No.243, 2021)

Nov 03,2021

By Sun Zhiyan, Department of Development Strategy and Regional Economy, DRC

Research Report, No.243, 2021 (Total 6308) 2021-9-3

Abstract: Viewing from the perspectives of technological complexity, market barrier and the strategic influence on national safety, this paper analyzes the bottle-neck issues and key risks in different links of China’s semiconductor supply chain. A systematic response policy system is suggested to be formulated based on the overall supply chain of semiconductor in China. Balancing between the long-term strategy and short-term response, China needs to prioritize key links which have great impact on national safety and bring bigger spillover effect, attract more resources to the pre-competition R&D area, and strengthen China’s R&D capability in basic sciences and engineering in the semiconductor industry. China needs to accelerate and deepen the technological development of refined semiconductor areas, sharpen international competitive edges of professional division of labor, and enhance China’s balancing ability in the global semiconductor supply chain. Besides, it is also necessary to construct a more open semiconductor innovation ecology and actively promote international cooperation with technologically advanced countries, so as to create a more favorable environment for the development of China’s semiconductor industry in the world.

Keywords: semiconductor supply chain, industrial policy, innovation ecology