The United States Worrying China to Sell Semiconductor Equipment at Cabbage Price and Rejected China Takeover of Philps

On February 5,New York Times publishedAmerican worrying about Chinese ambition in chip is daily increasing, the article said," China is investing heavily to build the domestic semiconductor industry, the upgrade its military forces and local technology industry's move caused by Washington's attention ". In late January 2016, the U.S. foreign investment committee rejected the Chinese investors take over PHILPS's lighting business at 2 billion 900 million, which is a concrete manifestation of the U.S. government concerns.

So, why the United States obstructed the acquisition? The United States government to stop is not the lighting business itself, but to prevent Chinese investors master the technology of the third generation semiconductor materials—GaN, through the acquisition of Philips’s lighting business. LED of GaN has the smaller appearance, higher power and luminosity than the traditional LED; more critical, the density power of GaN is 10 times of the existing GaAs, which can not only widely be used in communication base station, motor vehicles, electric vehicles, wind power and other civilian areas, but also used in the special fields of phased array radar, and make it became a hotspot and frontier of global semiconductor research.

The reason why U.S government stops Chinese investors’ acquisition of Philips’s lighting business is not just for the considering of technology in military applications and national security, but also for restrains the development of China's semiconductor industry, keep its advantage in technology technical.

In short, China support of the local development of the semiconductor industry in the from of semiconductor, IC design, manufacturing, packaging and testing, semiconductor manufacturing equipment, a full range of support, and strive to achieve a "winner" in the form of the whole industry chain. Once the semiconductor industry captured by China, and output the products at "cabbage price", it can weaken American global supremacy material basis on the one hand; on the other hand, it will make China completely get rid of controlled by others in the field of information technology and the harmful situation of information security, presumably this is what Americans really worries.

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