US battles ‘China conundrum’ in critical industries

China continues to dominate critical industries despite continued efforts by the US.

From a breakthrough in chipmaking technology to its stronghold on the rare earths market, the west is struggling to catch up with China's critical might.

China has announced a significant advancement in its semiconductor technology with the development of a new laser-based immersion lithography machine.

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This new equipment achieves a resolution of 65 nanometres, a notable improvement from the previous 90 nanometres.

The resolution of lithography machines is crucial for chipmaking as it determines how finely integrated circuits can be printed onto silicon wafers.

Current leading technology from ASML has a resolution of around 8 nanometres.

Despite these advancements, Chinese companies are still working to close the gap with global leaders like ASML, especially given the US Sanctions that have restricted access to advanced semiconductor equipment.

While China's advancements in chipmaking are impressive, another critical element in high-technology manufacturing is the rare earth minerals.

These elements are essential for producing a wide range of electronic components, from smartphones to electric vehicles.

China currently dominates the global supply of rare earths, controlling approximately 70 per cent of output and more than 90 per cent of refining.

The US And its allies have recognized the strategic importance of rare earths and are working to reduce their dependence on China.

However, recent price declines and increased supply have raised concerns about the viability.

Efforts, such as the Lynas rare earths processing plant in Texas, face challenges including a slump in prices and higher-than-expected costs.

The mountain pass mine in California and other ventures are struggling with economic hurdles.

This illustrates the difficulties in developing a competitive alternative to China’s entrenched market presence in key critical industries.