Challenges in Chinese Semiconductor Technology

China's ambitions in semiconductor manufacturing face significant hurdles, particularly in producing advanced chips under 20 nanometers, which rely on cutting-edge technologies controlled by foreign firms like ASML. While China has made strides in developing lower-tier chip technology, it struggles with operational inefficiencies and dependencies on foreign expertise, software, and equipment. The geopolitical landscape further complicates these challenges, with U.S. technological sanctions constraining China's access to essential tools for high-end chip production. As a result, China's efforts to bolster its technological independence may fall short, maintaining a clear divide in global semiconductor capabilities.