By Eduardo Baptista and Fanny Potkin
BEIJING/SINGAPORE (Reuters) - China's semiconductor industry is readying itself for four more combative years under Donald Trump as U.S. president by ramping up purchases of foreign chipmaking equipment and looking out for opportunities to hire overseas talent and forge new alliances.
Among the strategies being considered are the pursuit of closer ties with countries and firms that may feel alienated by the U.S. President-elect's future policies, and a doubling down on self-sufficiency, according to a review of more than 30 articles and research notes published by Chinese chip firms, associations and analysts this week after Trump's win.
Trump notably went after Chinese telecoms conglomerates Huawei and ZTE, as well as chipmaker SMIC, during his first term in office, placing them on trade blacklists that curbed their access to crucial U.S. hardware and software. The Biden administration in contrast has leaned on broad export controls, meant to cut off all of China from access to the most advanced chips made by U.S. firms.
Zhu Jing, deputy secretary-general of the Beijing Semiconductor Industry Association, urged Chinese chip firms on Thursday to beef up their overseas business and expand to more countries, saying there could be opportunities to resume procurement of certain chip imports should global coordination between the U.S., Japan and Europe to enforce sanctions against China weaken under Trump.
Companies should also step up to attract overseas talent if the Trump administration repeats the stance of its first term and implements policies that make it difficult for Chinese students and professionals to work in the United States, he said in an article published on WeChat.
"After Trump takes office it is possible that there will be some benefits to the development of China's semiconductor industry in terms of professional talents, multinational companies and foreign cooperation. I recommend that we adapt to the new situation and changes in a timely manner," he said.
Many of the articles also predicted the industry would see a step up in export controls and potential tariffs against it under Trump and that doubling down on self-sufficiency is the way forward.
"Trump's first term made us realise the importance of semiconductors and the necessity of localisation, paving the way for China's semiconductor industry to become self reliant," Jinan Lujing Semiconductor Co, a maker of security chips and power devices, said on its WeChat account.