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2019 J. Int'l Com. & Econ. 1 (2019)
Chinese Semiconductor Industrial Policy: Prospects for Future Success

handle is hein.journals/jice2019 and id is 103 raw text is: Chinese Semiconductor Industrial Policy: Prospects for Future Success John VerWey Abstract This paper, the second in a two-part series analyzing the Chinese semiconductor industry, attempts to answer two questions: First, why-in spite of 70 years of industrial planning efforts-can't China make advanced semiconductors on par with the worldwide industry leaders? Second, what are China's prospects for success with its current semiconductor industrial plans? This paper reviews the development of the semiconductor industries in Taiwan, Japan, and South Korea in the context of literature on latecomer strategies and compares their development with China's efforts. The paper also considers China's prospects for success. China's current plans are well defined, with national champions focusing their efforts on targeted subsectors of the industry, but these efforts will not achieve their desired success due to a lack of human capital and intense international competition. Keywords: Semiconductors, China, trade, latecomer strategies, integrated circuits, global value chains, industrial planning, export controls. Suggested citation: VerWey, John. Chinese Semiconductor Industrial Policy: Prospects for Future Success. Journal of International Commerce and Economics, August 2019. https://ww .usitc.gov/iournals/jice home.htm. This article is the result of the ongoing professional research of U.S. International Trade Commission (USITC) stal and is solely meant to represent the opinions and professional research of its author. It is not meant to represent in any way the views of USITC or any of its individual Commissioners. Please direct all correspondence to John VerWey. Office of Industries. U.S. International Trade Commission. 500 E Street SW. Washington. DC 20436. or by email to John.VerWev @usitc. gov. The author would like to thank Dan Kim for helpful feedback and thoughtful suggestions throughout. and three anonymous referees for their comments. Journal of International Commerce and Economics I 1

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