By Miranda Li

The Russia-Ukraine crisis continues, and many countries have imposed technology and equipment sanctions on Russia. The Chinese industries have been watching the situation closely, especially on the implications for China in the longer term.

There have been disturbances in the global supply chain. What is felt immediately in China is the rise in the cost price of raw materials, including neon, xenon, and palladium, leading to the cost rise of semiconductor manufacturing and undoubtedly impacting the downstream consumer electronics markets.

But the strongest impact of the Russia-Ukraine war on China is probably in reinforcing the thinking of the country's pursuit of an autonomous and self-control strategy for its technological development, according to most analysts and industry players.

Guo Guoping, Deputy Director of the School of Microelectronics at the University of Science and Technology of China, said the crisis was an alert. China should learn from it and build its autonomy and control capability in the semiconductor industry. At the same time, China should stay open and keep studying. "If China does not have its own independent and controllable core technologies, we can't integrate into the international industrial sectors," he said.

Han Xiaomin, general manager of JW Insights consulting division, expressed that it would improve China's bargaining power if China possessed its independent core technologies. At the same time, the semiconductor industry is an ecosystem full of technologies and products. China needs to plan for the big picture of the industry.

Another senior industry analyst pointed out that the Russia-Ukraine conflict should have some alerting values for China. Chinese corporate and governments should realize that China must have its own complete, independent, controllable information and industry system, including the essential industrial and financial systems.

Based on the current situation, the bottom line is for China to set up a large and comprehensive semiconductor industry chain, Han said.