A STUDY OF MODERNIZATION AND INNOVATION IN THE SEMICONDUCTOR INDUSTRY OF THE PEOPLE'S REPUBLIC OF CHINA
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Authors
Fontana, Robert J., III
Subjects
China
technology
semiconductor
microchip
integrated circuit
espionage
industrial policy
technology
semiconductor
microchip
integrated circuit
espionage
industrial policy
Advisors
Glosny, Michael A.
Date of Issue
2024-06
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
This thesis examines the factors that influence the continued development of the Chinese semiconductor industry by examining both broad trends and specific company case studies. It assesses internal and external influences on Chinese chip innovation and development, and finds external sources to be much more impactful. China’s industrial policy targeting semiconductor industry growth does not encourage innovation in spite of its publicity. Decentralized distribution of financing by the national and local governments and the tendency to choose specific companies as beneficiaries stifle indigenous innovation. External contributions are largely legitimate, including direct investment, training and expertise, licensing of designs and patents for production and use in China, and participation in joint ventures. Industrial espionage is also an external factor, including patenting designs from overseas in China, persuading employees of foreign competitors to provide designs and methods in exchange for bribes or positions, and direct theft of designs during joint ventures. The study finds that despite China’s significant investment in chip industry growth, it has not successfully motivated innovation as it has imitation. Even in cases of genuine indigenous innovation, Chinese companies are reliant on overseas methods to produce modern chips, and likely will remain so for some time.
Type
Thesis
Description
Series/Report No
Department
National Security Affairs (NSA)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Distribution Statement A. Approved for public release: Distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.