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China Is Starting to Rethink Its Dreams of Chip Domination

  • Overtaking the leaders will be tough, key official says
  • China can still make a difference in IoT, cars, smart devices
Photographer: Maurice Tsai/Bloomberg
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China’s signaling a tempering of its ambitions to become a global semiconductor power because it can’t out-spend the likes of Intel Corp. in the short run, but it still intends to become a force in unclaimed fields such as the Internet of Things.

The country’s “corner-overtaking” strategy simply isn’t realistic, said Ding Wenwu, president of a $20 billion government-backed fund set up in 2014 to help lift the domestic chip sector out of obscurity. Ding, speaking at an industry forum, was using a racing term that refers to passing opponents at their most vulnerable.