Global Tech Shift: Strategy Re-calibration?
Bill Gates had stated years ago that by restricting access of China to the most advanced technology, it might have a back-firing effect, boosting the self-reliance imperative in China. 2024-2025 Fast Forward and things are different.
The innovation engine in China appears to have increased rather than slowed down. Here's a closer look
Huawei's Comeback Story
Huawei had spent over 1.1 trillion yuan in research during the last decade despite being crippled by significant constraints. The outcome? The Kirin chipset resurfaces in its Mate series, as well as the explosive expansion of its HarmonyOS that provides 800M+ devices globally.
SMIC's Expansion
Instead of shrinking, SMIC experienced its revenue growth enormously since 2018 and is currently ranked among the world leaders as a semiconductor foundries by revenue.
AI Acceleration
Having limited access to chips, Chinese AI-oriented companies maximized the situation to be efficient. Competitive performance of such models as DeepSeek-R1 has also been reported and it possesses lower training costs, which suggests the transition to resource-efficient innovation.
Market Ripple Effects
Export controls have led to revenue pressures of major US chipmakers. According to some industry analyses, the US semiconductor industry can be subject to major global share realignments as the trend of decoupling persists and the exports of integrated circuits in the Chinese market have been good in 2024.
Key Takeaway:
Technology: Sometimes the technological barriers can create the technological sparks within the country. The world has transformed into a technology ecosystem and the market is becoming contested on numerous fronts.
Has the technological leadership changed or is it only becoming more competitive? Share your perspective
