“China appears to have developed their own capability to fabricate wafers,” said Hashimoto. “Quality does not necessarily appear to be very good, but there is strong pressure to comply with the ‘Buy China’ policy. Local Chinese chipmakers, particularly those with a high degree of state involvement have little choice but to use made in China wafers. This policy directly competes with the inflow of wafers from the free world up to this point, but we do not have a lot of clarity on what exactly is going on.”