INSUBCONTINENT EXCLUSIVE:
(Analysis) In the global race for technological supremacy, semiconductors have emerged as the most critical asset
These tiny chips power everything from smartphones to artificial intelligence (AI) systems and advanced military equipment.But behind
power.Chips of Power: The Role of Semiconductors in the Battle for Global DominanceThe Semiconductor Supply Chain: A Global
WebSemiconductors are not just another commodity; they are the backbone of modern technology
However, producing them is one of the most complex processes in human history
No single country can manufacture advanced chips independently
The supply chain spans across the globe, with each country specializing in different stages of production.Taiwan, led by companies like
TSMC, dominates global chip fabrication, producing the most advanced semiconductors
South Korea and Japan supply crucial materials and components, while the United States excels in chip design and electronic design
automation (EDA) software
Meanwhile, Europe, especially the Netherlands, hosts ASML, the sole producer of extreme ultraviolet (EUV) lithography machines essential for
crafting cutting-edge chips.China, despite being a manufacturing giant, plays a surprisingly small role in this supply chain
It spends more on importing semiconductors than it does on oil, with chips flowing into China from Taiwan, South Korea, Japan, and the U.S
In 2023 alone, the country imported 479.5 billion integrated circuits (ICs) worth $349.4 billion, while spending $337.5 billion on crude oil
like smartphones, computers, and electric vehicles (EVs)
produced exclusively by ASML
These machines are so complex that it took ASML three decades to develop them, and they cost over $300 million each.Since 2018, U.S
export controls have prohibited the sale of these machines to China
Even Chinese companies like SMIC and Huawei struggle to move up the value chain because they lack access to this critical technology.China
has made strides in less advanced semiconductor production, but replicating decades of Western expertise remains a monumental challenge
the realm of artificial intelligence
AI systems demand immense computational power, which is provided by high-performance GPUs (graphics processing units)
company, dominates this market, controlling 90% of advanced AI GPUs.In 2022, the U.S
restricted Nvidia from selling its most advanced GPUs to China
autonomous vehicles to military drones.The impact on military capabilities is particularly concerning
AI-driven technologies, such as autonomous drones and intelligence-gathering systems, are expected to play a pivotal role in next-generation
Without access to high-end semiconductors and GPUs, China faces challenges in keeping pace with Western advancements in AI-enabled military
technology.The semiconductur supply chain is based mostly in the West and its allies South Korea, Japan and Taiwan.The Economic Impact: A
Chips power nearly every sector of its economy, from electric vehicles to medical devices
globally but relies heavily on foreign semiconductors.U.S
Investments in China: A New Era in Tech CompetitionPotential Risks for the WestWhile the West holds significant leverage over China through
its control of semiconductor technology, this strategy is not without risks
Cutting off China from the global semiconductor supply chain could exacerbate the already fragile system, leading to price hikes and
production delays in other markets.In response, China might retaliate by leveraging its dominance in rare earth elements, which are critical
for manufacturing electronics and renewable energy technologies
Additionally, China could strengthen partnerships with non-aligned nations, such as Russia or countries in the Global South, to
counterbalance Western restrictions and reduce its dependence on Western technology.Conclusion: A New Kind of Power PlaySemiconductors have
become the battleground of modern geopolitics
leverage over China.However, this is not a zero-sum game
the balance of power could shift in the long run
Yet, this strategy requires careful management to avoid unintended consequences that could disrupt global markets and exacerbate
geopolitical tensions.In this new era, technological control rivals territorial dominance as the key to global power
The semiconductor race will shape not just economic futures but also the geopolitical order for decades to come.Chips of Power: The Role of
Semiconductors in the Battle for Global Dominance
