The Impact of the US Action against Fujian Jinhua and UMC

In line with the "Made in China 2025" plan set out in the "13th Five-Year Plan," the Chinese government has invested heavily in recent years to strengthen its position in the semiconductor industry, with a focus on memory chips. As Beijing beefed up its chip-making prowess, Chinese semiconductor makers became more involved in patent-related legal disputes with other IC makers. With the onset of the Sino-U.S. trade war, the issue took on global proportions. This report reviews and analyzes the possible subsequent impact of the US Justice Department complaints against Fujian Jinhua and UMC.

1.Background
1.1 On National Security Grounds, the US Department of Commerce Puts Fujian Jinhua on its Control List
1.2 The Relationship between Fujian Jinhua and UMC
2.Impact on Taiwans semiconductor industry
2.1 Development of Taiwan’s DRAM Industry is Limited
2.2 Taiwanese Semiconductor Manufacturers Will Be More Cautious about Cooperating with China
3.The Impact on the Chinese Semiconductor Industry
3.1 Stronger Resistance to Semiconductor Development in China
3.2 Fujian Jinhua will Stop Building Plants and Lower Its Profile
MIC Perspective
Appendix
Glossary of Terms
List of Companies

List Of Tables

Background behind the US action against Fujian Jinhua and UMC, touching on their relationships and possible developments
Impact assessment on the Chinese semiconductor industry and subsequent interpretation
Impact assessment on the Taiwanese semiconductor industry, including DRAM, and subsequent interpretation

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