Global Semiconductor Wars
The global semiconductor war is an ongoing economic and technological conflict mainly between the United States and China. Microchips run everything from smartphones to advanced weapon systems. The United States controls much of the chip design and manufacturing equipment. China buys the most chips but struggles to build the most advanced ones. Taiwan produces over 60 percent of the world's chips and 90 percent of the most advanced chips. The US government placed strict export limits on advanced chip technology to China in October 2022. China responded by banning certain US chip companies and restricting the export of key chip-making metals. This conflict forces other nations and tech companies to pick sides and rebuild supply chains.
Core Context Pillars
United States Export Controls
In October 2022, the US Commerce Department banned the sale of advanced semiconductor chips and chip-making equipment to China.
Taiwan Market Dominance
Taiwan Semiconductor Manufacturing Company builds over 90 percent of the world's most advanced microchips.
China Retaliation
In May 2023, China banned the US chipmaker Micron Technology from critical infrastructure projects.
Global Supply Chain Shift
The US passed the CHIPS and Science Act in August 2022, giving 52 billion dollars to companies that build chip factories in the United States.