Expert: Full semi-conductor self-sufficiency unnecessary

Updated 2018-05-15 10:16:03

The fluctuating story of Chinese telecom equipment maker ZTE is a "wake-up call" for China to spur its own chip drive, but aiming for "100 percent self-sufficiency in the semi-conductor industry" is a wrong idea, according to Jay Huang, founding partner of Jadestone Capital and former managing director of Intel China.

"The whole semi-conductor industry is divided into different categories," Huang said. He added that China is catching up with the world leaders in design, but still faces large gaps in other categories such as equipment and materials.

In that case, ZTE crisis is definitely positive for the industry in China, Huang told CGTN, however, noting that all countries should produce goods with comparative advantages as they are all inter-dependent with each other in the global value chain.

"You don't have to produce everything 100 percent in your own country. You only do what you are good at. So that's why thinking about 100 percent self-sufficiency for everything is wrong," Huang explained.

As an investor in semi-conductors, Huang admitted that it is hard to make profits in the semi-conductor industry. But from his perspective, the semi-conductor industry in China has more potential than in the U.S..

In fact, compared with US investors, investors in an A-share market are more willing to invest in semi-conductor companies, Huang said, "That means the ceiling [for semi-conductor companies] in China is much higher than in the US, which means more opportunities."

The ZTE crisis seems to be averted for now, as U.S. President Donald Trump tweeted on Sunday that Washington and Beijing are working to get ZTE back into business. China's Foreign Ministry responded later on Monday that China highly appreciates the US position on ZTE.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 20 2019 00:59:48

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 20 2019 00:59:48

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 20 2019 00:59:48

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords