From Military Dominance to Military-Civil Fusion: China’s National Defence in the Semiconductor Industry

<jats:p>KEY TAKEAWAYS - From the Mao Zedong to Xi Jinping eras, China’s semiconductor industry has evolved from a military-dominated sector into a largely civilian-led industry. - The military and defence establishment has remained a structuring force in the sector, but its role has evolved from direct patronage to relative decline, and more recently to strategic steering. - The ongoing military-civil fusion (MCF) strategy has re-securitized semiconductors by building a more centralized party–military–government system to channel civilian capabilities toward defence use. - Under MCF, China’s emerging defence–semiconductor nexus is characterized by stronger defence steering, a renewed whole-of-nation approach, and the rise of a national team of largely civilian firms. - It remains uncertain whether MCF can overcome the industry’s “chokepoint” problems and deliver sustained technological breakthroughs. - Europe needs to examine the Chinese model more closely, as either its success or failure could have major implications for its economic competitiveness and strategic security.</jats:p>