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The U.S.-China Conflict Over Chips Is About to Get Uglier
Posted
October 22, 2020
Views
2,520
Likes
30
Comments
17
Engagement
1.87%
October 22, 2020
2,520
30
17
1.87%
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2:35Now PlayingMicrochip production is getting caught up in U.S.-China tension.
As the U.S.-China confrontation takes root, the ability to craft chips for everything from artificial intelligence and data centers to autonomous cars and smartphones has become an issue of national security, injecting government into business decisions over where to manufacture chips and to whom to sell them. Those tensions could kick into overdrive as Communist Party leaders set a five-year plan that includes developing China’s domestic technology industry, notably its chip capabilities.
Semiconductors made from silicon wafers mounted with billions of microscopic transistors are the basic component of modern digital life and the building blocks of innovation for the future. They are arguably one of the world’s most important industries, with sales of $412 billion last year; scale that up to the electronics industry that depends on chips, and it’s worth some $5.2 trillion globally, according to German manufacturers.
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