Historically, the semiconductor value chain has flourished thanks to transnational
divisions of labor that supported high levels of economic efficiency and innovation.
As a result, interdependencies throughout this value chain exist between different
regions around the globe. The US-China technology rivalry, the COVID19 pandemic
,and global shortages in semiconductors have led many governments to scrutinize
these interdependencies in the transnational semiconductor value chain. The US
government for example has completed a review of the semiconductor supply chain.
Europe’s new industrial strategy focuses on assessing and managing strategic dependencies
in different technology ecosystems, including semiconductors.
China’s capabilities in the semiconductor value chain play a key role in these considerations.
China’s government is making great efforts to raise the competitiveness
of the Chinese industry in the semiconductor sector, building on and supporting China’s
role in global electronics manufacturing and emerging technological ecosystems.
With growing strategic concerns in the US and Europe about China, a better understanding
and systematic assessment of China’s capabilities in producing semiconductors
is needed. What is the position within the semiconductor value chain
of Chinese companies? In which areas is China highly reliant on foreign technology
providers? How likely is China to catch up within this decade in a particular production

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