Over the past five years, the US relationship with China has increasingly moved from one of strategic engagement to one of strategic competition. Several publications and speeches by US government officials have reflected this change, while trade barriers have been introduced and restrictions have been imposed on the technology sector. The era of strategic competition will likely be long lasting and will bring transformational change to many Chinese businesses, notably in the technology sector. Aside from the significant geopolitical impact, this will have important implications for investors in Chinese companies. Against this backdrop, we examine the state of the Chinese semiconductor sector. Technology is crucial to the development and prosperity of any country because of its role in improving economic growth, living standards, global competitiveness, and military power. Technology is often regarded as the most crucial factor in a country’s competitive progress. The semiconductor, or chip, is the fundamental building block of all modern computing and the key enabling technology of both the third and fourth industrial revolutions. Semiconductors have had a profound impact on a wide range of industries. In smartphones, cars, satellites, and the hardware that powers the internet, semiconductors are indispensable components. Unsurprisingly, countries are competing to win the semiconductor race. The strategic competition between the US and China is now primarily visible in the technology sector.