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Evolution of Inter-Company Competition in the Microelectronic Circuits Market

Author

Listed:
  • Viktor Nikolayevich KIRILLOV

    (State University of Management, Moscow, Russia)

  • Yuri Anatolievich SAVINOV

    (Russian Foreign Trade Academy, Moscow, Russia)

  • Anna Vasilyevna SKUROVA

    (MGIMO-University, Moscow, Russia)

Abstract

The article highlights the main areas of competition in the microelectronic circuits trade between the United States and China. The microelectronics industry has successfully overcome the effects of post-COVID restrictions and continues to expand. Its growth is currently exposed to, on the one hand, the increase in orders, and on the other hand, the US restrictions on the export of the most advanced types of microelectronic circuits. Currently the market has witnessed higher demand for microchips and a shortage of many types of raw materials due to delays in delivery, fiercer competition from the United States and China, which disrupts supply chains, and restrictions on access to important raw materials and energy prices around the world, especially in Europe. The transition to relatively large-sized silicon circuit substrates, or rather, the transition from substrates with a diameter of 200 mm to substrates with a diameter of 300 mm or more is a new area of science and technology competition between Chinese and US companies. In addition, concerns about new export restrictions urge the manufacturers to move production closer to their domestic markets. The US administration pressures strongly the economic policy of other countries, forcing them to limit their exports of new advanced microchips and chipmaking equipment to China. The competition is likely to intensify in the coming years.

Suggested Citation

  • Viktor Nikolayevich KIRILLOV & Yuri Anatolievich SAVINOV & Anna Vasilyevna SKUROVA, 2023. "Evolution of Inter-Company Competition in the Microelectronic Circuits Market," Russian Foreign Economic Journal, Russian Foreign Trade Academy Ministry of economic development of the Russian Federation, issue 5, pages 33-42, May.
    • Handle: RePEc:alq:rufejo:rfej_2023_05_33-42
    DOI: 10.24412/2072-8042-2023-5-33-42
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