The prediction has been fulfilled, the war of chips is raging with full steam – this is not another sci-fi movie, although the situation is just as remarkable. The global chip shortage has been making everyday life difficult for various technology companies for quite some time. The demand far exceeds the supply, and the nation that would be able to master the chaos would gain a serious economic advantage.
It is now a well-known fact that semiconductors are an essential part of technological development and national security. The supply chain of microchips is a complex international network that unfortunately stands on extremely shaky ground. Both America and China are trying to take advantage of this situation.
Due to their versatile use, chips have become a scarce commodity, and the two rival nations want to remedy this problem by increasing domestic production.
China and America have been competing with each other for market dominance for a long time, but the chase between them has become even more intense in recent years.
At the moment, the United States of America is a the world’s leading chip manufacturer. The market is dominated by companies such as Intel, Nvidia and Qualcomm. By definition, China does not take kindly to this and is trying to knock the Americans out of the saddle by piling investment upon investment.
At the same time, despite their efforts, both countries face serious difficulties in the production of semiconductors. The lack of key raw materials and skilled labor greatly hinders them from achieving their goals. In America, during the Covid-19 pandemic, in many sectors, such as the automotive industry and health care, an above-average deficit developed, which they have not been able to bring in ever since.
In addition to the 2 big guns, Taiwan also plays a decisive role in the semiconductor sector. TSMC and UMC manufacture sophisticated, high-performance microchips used in computing and artificial intelligence. Also, we should not forget the Dutch ASML, which produces lithography equipment for making chips.
The war of chips is far from over, but one thing is for sure that the party that comes out on top will gain enormous influence.