Analysis: China's massive older chip tech build up raises U.S. concern

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Analysis: China's massive older chip tech build up raises U.S. concern
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China’s largest chip maker SMIC is ramping up production of a decade-old chip technology, key to many industries' supply chains, setting off alarm bells in the United States and prompting some lawmakers to try to stop them.

People visit a booth of Semiconductor Manufacturing International Corporation , at China International Semiconductor Expo in Shanghai, China October 14, 2020. REUTERS/Aly Songis ramping up production of a decade-old chip technology, key to many industries' supply chains, setting off alarm bells in the United States and prompting some lawmakers to try to stop them.

, has a track record of dominating key technologies by flooding the market with cheaper products and wiping out global competition, say China watchers. “It would give Beijing coercive leverage over every country and industry - military or civilian - that depend on 28 nanometer chips, and that's a big, big chunk of the chip universe," he said.

Hutcheson, who has been monitoring chip production capacity for four decades, said the concern is that Semiconductor Manufacturing International Corp

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