Chinese Walls and Back Doors

Alan Patterson, Correspondent, EE Times
1/29/2015 11:05 AM EST

Qualcomm and U.S. industry are the losers as China's antitrust regulators help build a new wall around China's semiconductor industry.

The need to build Chinese walls in the semiconductor industry is taking on a completely new significance as China’s antitrust regulators start to flex their muscles.

The implications affect global companies that aim to keep their foothold in China’s semiconductor market -- which by 2012 became the world’s largest, accounting for 52 percent of total demand -- that continues to lead industry growth.

The key chipmakers impacted by China’s antitrust initiatives include Qualcomm of the US and MediaTek of Taiwan as well as emerging Chinese companies such as Semiconductor Manufacturing International Corp. (SMIC) and Spreadtrum Communications. The Chinese government, which has aimed to make semiconductors a pillar industry for years, is using antitrust issues to create a level playing field for domestic companies.

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