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Paper Tigers, Hidden DragonsFirms and the Political Economy of China's Technological Development$
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Douglas B. Fuller

Print publication date: 2016

Print ISBN-13: 9780198777205

Published to Oxford Scholarship Online: August 2016

DOI: 10.1093/acprof:oso/9780198777205.001.0001

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IC Fabrication

IC Fabrication

(p.117) 5 IC Fabrication
Paper Tigers, Hidden Dragons

Douglas B. Fuller

Oxford University Press

This chapter examines China’s industrial policy in integrated circuit fabrication and contrasts it with the hybrid and MNC firms that have set up fabs (fabrication facilities) in China. From the 1990s onward, China has had an active industrial policy to promote SOEs, such as Huajing and Huahong, but these efforts have by and large failed to propel China’s development in IC fabrication. In contrast, first CSMC and then SMIC have pushed China’s fabrication technology closer to the international technology frontier. Both CSMC and SMIC are hybrids. The MNCs have since followed the lead of the hybrids to China, but they utilize far from their best technology in China and their fabs lag behind SMIC’s process technology.

Keywords:   China, SMIC, Grace, Huahong, fabrication, integrated circuit industry, semiconductors, industrial policy, multinational corporations

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