China's dream of leading smartphone market takes a hit from chip shortage - Korea JoongAng Daily

China's smartphone market leadership aspirations face significant setbacks due to chip shortages, highlighting the fragility of global semiconductor supply chains. As Chinese tech companies increase d... Read original →

The chip shortage reveals a critical 'technology gap' in China's smartphone sector below the 7nm node—even with leading SoC designs from firms like HiSilicon, manufacturing remains heavily reliant on overseas foundries such as TSMC. This disrupts premium product cycles and forces accelerated domestic substitution across upstream segments like EDA, equipment, and materials. U.S. export controls and geopolitical friction have sharply raised compliance costs, compelling firms to build dual-track supply chains that increase operational complexity and inventory burdens. Samsung and Apple are exploiting this window to widen their lead in premium segments, especially foldables and AI-integrated handsets. Over the next 18 months, China will prioritize full-stack autonomy at mature nodes like 28nm, but remain constrained in EUV lithography and advanced packaging. This isn’t a cyclical hiccup—it’s a structural inflection point as the global semiconductor industry shifts from efficiency-driven to security-driven logic.