New Chinese Military Policy to be a Shot in the Arm for Domestic Chip making Industry


New military guideline recently brought into effect by the Central Military Commission (CMC) in China, will provide a shot in the arm of the country’s chip manufacturing industry. The recent guidelines are aimed enhancing military information management, and will come into force soon.
According to these latest guidelines, the focus will now be on promoting independent IT applications in China, with a view to strengthening military information security. This was reported by Shanghai-based China Business News.

Today, a country’s chip making industry speaks volumes about its competitiveness on the industrial and technological front. This is also the reason why China is laying greater emphasis on its independent IT applications. The country has plans to further strengthen its information security systems, and the new military guidelines are geared towards this.

According to a market research expert, the semiconductor manufacturing sector in China will witness a sea change in the five years ahead. The timing seems to be right, as the chip making industry in China is now reaching a stage of maturity, and will be able to respond more effectively to these guideline changes. Analysts state that chips produced domestically will become more conspicuous in the Chinese market beginning late 2014.

China is under tremendous pressure to emerge as a leader in the cyber security domain, as many other countries are competing for the strategic position. However, producing chips domestically is not an easy option for China, as its semiconductor manufacturing sector is yet to develop fully. A shortage of high-end chips in China is evident, and more capital investments in this sector are required.

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