TAIPEI (TVBS News) — Chris Miller, author of "Chip War," highlighted China's persistent drive toward semiconductor self-sufficiency during remarks on Tuesday (March 25). Miller noted China's strategic focus on this sector has led to a relatively significant allocation of resources to bolster its semiconductor capabilities compared to its counterparts, the U.S., Japan, and European countries.
Miller explained that China has been developing post-manufacturing and design capacities while taking initial steps to replicate semiconductor manufacturing tools. He cited reports suggesting numerous ASML employees have been hired by Chinese firms, and Chinese researchers reportedly enjoy unlimited salaries to advance photolithography, with suspicion of government-backed hacking to obtain designs.
While the U.S., Japan, and Europe can subsidize their industries as one tactic to counter China's efforts, Miller argued that China's willingness to sustain expensive policies might allow it to outpace competitors in a subsidy race. He pointed out China's readiness to invest in economically inefficient industries, even if they remain unprofitable and not globally competitive.
Miller emphasized that a DUV tool is necessary before producing an EUV tool, underscoring the challenges China faces. "China doesn't have its own competitors in the DUV tool. I think you probably need a DUV tool before you can make an EUV tool," Miller stated. Despite these efforts, China has struggled to acquire ASML's EUV tools for six years. Miller estimates that, given its lack of domestic competitors in DUV technology, it could take over a decade for China to indigenize lithography tools.