China's Semiconductor Industry Catching Up with the West

China's semiconductor industry is rapidly making strides, with breakthroughs in chip technology and manufacturing capabilities. Huawei's recent phone release featuring a domestically-made chip surprised many as it achieved performance on par with foreign counterparts. China's focus on lagging-edge chips, such as microcontrollers, is driving innovation and scaling out chip production for various industries. Furthermore, China is investing heavily in cutting-edge technologies like copacage optics and hybrid bonding, pushing the boundaries of chip development. Chinese companies are also looking to disrupt foreign chip manufacturers in specific areas like power chips. This industrial policy, combined with subsidies, positions China to challenge and potentially surpass Western dominance in certain semiconductor sectors.