Rohan Paul

Eponch AI research: China is 2.7× as exposed to chip shortages as the US, because semiconductors make up 2.7× as large a share of everything it buys. When Chinese consumers and businesses spend $1,000, $15.2 of it ultimately pays for the chips inside what they buy, while the same American spending pays $5.7. The gap widens for chips made by China’s neighbors, reaching 4.7× for Taiwan’s, 4.0× for South Korea’s and 3.6× for Japan’s. Domestic producers covered 23% of China’s chip demand in 2022, up from 12% in 2016, but lag in advanced processors and stacked memory.