China's chip design and manufacturing capabilities lag significantly behind the United States and its allies, according to a report by the US think tank Information Technology and Innovation Foundation (ITIF).
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"Chinese companies are about two years behind the global leaders in designing logic circuits, while they are several years behind in memory circuits," explained report author Stephen Ezell.
Semiconductor manufacturing equipment – such as the lithography tools that make the chips – is another area where China lags significantly. The report quotes an unnamed commentator who believes China may be five generations behind in this area.
Ezell warned that this does not mean the US and allies can "rest on their laurels" or they "risk seeing a significant reduction in their industry."
