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Technology Stocks : Semi Equipment Analysis
SOXX 215.80-1.0%Oct 18 3:59 PM EDT

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From: Sam6/13/2019 9:19:32 AM
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China chip industry insiders voice caution on catch-up efforts
Josh Horwitz, Sijia Jiang
June 13, 2019 / 8:22 AM / Updated an hour ago

SHANGHAI/HONG KONG (Reuters) - Since the U.S. government put Huawei Technologies Co Ltd on a trade blacklist, effectively banning American firms from doing business with it, China’s leaders have spoken boldly about achieving self-sufficiency in the critical semiconductor business.

But industry insiders are less optimistic that Chinese chip makers can quickly meet the challenge of supplying all the needs of Huawei and other domestic technology firms.

The prospectuses of Chinese chip companies preparing to list on a new tech-focused stock exchange are blunt, characterizing the domestic industry as “relatively backward”, lacking in talent and requiring “a long time to catch up”.

Chinese chip engineers tell tales of local manufacturing that just is not up to snuff, while analysts point out the many areas where China remains reliant on technology from the United States, Taiwan, South Korea, Japan and Europe, with some questioning whether government policies are in the right place.

continues at reuters.com
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