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BahayBalitaUS experts: If China continues to develop chips, it will encounter an economic crisis

US experts: If China continues to develop chips, it will encounter an economic crisis

Dec09
As the core of today's information technology, chips are an important symbol of national competitiveness.
However, China's development in the chip field has been strongly suppressed and blocked by the United States, causing China's chip industry to face huge difficulties and challenges.
In this situation, how should China respond? Should we continue to insist on independent innovation, or give up chip research and development and turn to other fields?

Recently, an American expert published an article that severely criticized and warned China's chip research and development, believing that China's chip research and development is a dead end and will lead to an economic crisis if it is not stopped in time.
This article triggered widespread controversy and rebuttal. Are the views of this American expert justified? Is China's chip research and development really a wrong choice?

1. Chip battle, warning from American experts
An article by an American expert is titled "China's Chip Dream Will Become a Nightmare" and was published on the website of the American "National Interest" magazine.
This article believes that China's chip research and development is an "obsessive" behavior, a "self-destructive" approach, and an "unrealistic" fantasy.
And he listed the following reasons in the article to support his point of view:
First, the cost of chip research and development is too high and the benefits are too low.
The article quoted some data, saying that the cost of chip research and development is rising every year. From 28nm to 7nm, the cost of chip research and development has increased nearly six times, reaching US$297 million.
However, chip revenue has not grown simultaneously, and instead faces the risk of market saturation and price decline.

The article also stated that China's chip research and development mainly relies on government subsidies and investment, rather than market demand and competition. This is an unsustainable model. Once the government's funding is cut off, the chip industry will collapse.
Secondly, the technology of chip research and development is too backward and difficult to catch up with.
The article points out that there is a huge technological gap between China's chip research and development and that of the United States and other countries. Whether it is in terms of chip design, manufacturing, packaging, testing, etc., China has not formed its own core technology and intellectual property rights; Dependent on foreign technology and equipment.
In addition, China's chip research and development lacks innovation and breakthroughs. It only imitates and assembles foreign chip IP without forming its own characteristics and advantages, making it difficult to meet the diversified and personalized needs of the market.
Finally, the risks of chip development are too great to resist.

The article believes that China's chip research and development is facing severe crackdowns and blockades from the United States and other countries. No matter in terms of politics, economy, law, security, etc., China is in a passive and disadvantaged position.
China's chip R&D also faces various domestic problems and challenges, such as lack of talent, market chaos, inefficiency of management, lack of supervision, etc., which will affect the quality and efficiency of chip R&D.
The article concludes that China's chip research and development is a wrong choice, a wasteful and dangerous adventure. If China does not stop it in time, it will encounter an economic crisis and even trigger social unrest and political crisis.
The article recommends that China abandon chip research and development and turn to other fields, such as service industry, agriculture, tourism, etc. These fields are more suitable for China's national conditions and advantages, and can also bring stability and prosperity.

2. Technology blockade and China’s independent innovation
Chinese netizens and experts strongly refuted and criticized the American experts' article, believing that it was full of prejudice and malice, a typical "sour grapes mentality" and a "sinister intention" to hinder China's development.
The articles by these experts are full of prejudice and disparagement against China's chip research and development. They not only ignore the progress of China's chip technology and its contribution to the global chip market, but also try to promote the international community's distrust and suppression of China's chips in order to achieve their own political goals.

They also cited the following reasons:
Chip research and development costs are high but the benefits are higher. Chip research and development is a project with huge investment and high risk, but the benefits it brings are also huge.
Chips are not only a commodity, but also a strategic resource that can ensure national security and participate in international competition. Chip research and development can not only promote technological progress and innovation, but also drive the development and upgrading of other industries, improving national status and influence.
Chip research and development is a systematic project that requires the participation of governments, enterprises, scientific research institutions, universities and other parties to jointly promote technological progress and industrial upgrading.
Chip research and development technology has advanced and is catching up. In recent years, China's chip research and development technology has made significant progress, and in some fields it has even surpassed countries such as the United States.

China's chip research and development has entered the stage of independent innovation and transcendence from the stage of imitation and catching up. China's chip research and development focuses on applications and services to meet the diversified and personalized needs of the market and provide support for public welfare and people's livelihood.
Moreover, our research and development focuses on market demand and application scenarios. We not only produce a large number of high-end chip products, but also launch many application solutions that meet market needs, making great contributions to China's economic and social development.
Chip R&D risks are controllable and are being resisted. Facing the suppression and blockade by the United States and other countries, China's chip research and development is taking measures to actively respond and resist various risks and challenges.
China's chip research and development risks are controllable and it has strong resilience and ability to withstand pressure.

They also admit that there are some problems and challenges in China's chip research and development, such as talent shortage, market chaos, inefficient management, lack of supervision, etc., but these problems are not insurmountable and can be solved through reform and improvement.
These problems require the joint efforts of governments, enterprises, scientific research institutions, universities and other parties to solve them through reform and improvement.
They firmly believe that China’s chip R&D will continue to be improved and optimized to improve quality and efficiency.
As China's chip research and development continues to develop and improve, China will occupy an increasingly important position in the global chip market and make greater contributions to the development and improvement of the global chip industry chain.

3. Capital investment, future returns

The biggest misunderstanding in the article by American experts is that they regard chip research and development as a purely economic activity and ignore the strategic significance and long-term value of chip research and development. This is a one-sided and narrow view.
Chip research and development requires huge capital investment, which seems to be a waste of money, but in fact it is an investment in the future, an investment in technological autonomy, an investment in national security, and a an investment in international competitiveness.
Therefore, this investment is worthwhile, meaningful and rewarding.
Capital investment in chip research and development will not only bring economic returns, but also technical returns, social returns, and international returns.

These returns are not only reflected in the development of the chip industry, but also in the development of the entire country and society. Therefore, chip research and development is an act of strategic significance and long-term value.
Funding investment in chip research and development is a far-sighted choice, a courageous choice, and a wise choice.
Only with foresight, courage and wisdom can we make such a choice. Therefore, we should vigorously support chip research and development and work hard to achieve a technologically powerful country.
China's chip research and development is not a blind adventure, but a rational decision-making, an act that has been fully considered and evaluated.
This kind of decision-making takes into account not only the needs of the country, but also the needs of the industry, and the needs of international competition. Therefore, this kind of decision-making is feasible, well-founded and effective.

It can not only promote the development of China's science and technology, but also promote the development of Chinese society. Chip research and development is an industry, a technology, a culture, and a national image.
China's chip research and development will not stop because of the warnings of American experts, but will accelerate because of the warnings of American experts.
Because China has realized the importance of chip research and development, mastered the core technology of chip research and development, has a talent team for chip research and development, and already has policy support for chip research and development.
Therefore, China's chip research and development will not succumb to the suppression of the United States, but will rise because of the suppression of the United States, because China's chip research and development is for the development of the country, for the upgrading of the industry, and for the benefit of the people.

This kind of research and development is meaningful, valuable and effective. Therefore, we will not give up because of our own difficulties, but will make progress because of our own difficulties.
Chip research and development is a long-term process that requires continuous efforts and struggles, as well as continuous innovation and breakthroughs. Therefore, China's chip research and development is confident, determined and perseverant.

Conclusion
The article published by this American expert attempts to prevent China's chip research and development through the threat of economic crisis.
However, this threat did not achieve the expected effect, but instead inspired China's morale and confidence in chip research and development.
China's chip research and development is not a wrong choice, but a right choice.
In an era of rapid development of information technology, China's chip research and development will not stop, but will continue to move forward, contributing to China's technological development, national interests and people's happiness.


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