This will be a boon not just for China but also for countries that suffered from criminal sanctions imposed by Western regimes.
Once Chinese companies ramp up production, we’ll likely see similar thing to solar and EVs happening in the near future where cheap Chinese chips will flood the world and Western companies like Nvidia simply won’t be able to compete with that.
The west will almost certainly start banning Chinese tech on “security” grounds as they always do, but the rest of the world will be using chips from China going forward. That has huge implications in terms of who gets to set global tech standards. The west may easily find itself completely technologically isolated and incompatible with what the rest of the world uses.
It’s also worth noting that the whole chip industry runs on incredibly thin margins and relies on volume to stay profitable. Having a big chunk of their revenue cut off will necessarily impact the scale of R&D that Western companies are doing, and slow down their ability to develop new chips. So the tech gap with China is likely to start becoming a self-reinforcing effect. The farther ahead China pulls the harder it becomes for the West to catch up.
When attempting to slow down China’s rate of innovation accelerates China’s rate of innovation and slow down yours instead:
