The Ongoing Chip Wars: A Struggle for Technological Supremacy
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Understanding the Importance of Semiconductors
Consider an army lacking functional radios, targeting systems, or any military apparatus, from weaponry to transportation. Such a force would be rendered ineffective. Currently, Russia is grappling with this reality. Early reports from Ukraine indicated that Russian tanks were being repaired with chips salvaged from household appliances like dishwashers.
As part of international sanctions, we are prohibiting the export of machinery necessary for semiconductor production to China and Russia. In response, we are urgently working to establish domestic chip manufacturing facilities after years of reliance on foreign sources that have diminished our production capabilities.
Section 1.1 The Global Semiconductor Supply Chain
Nearly half of the chips utilized in various machines are sourced from Taiwan, specifically from a single manufacturer. It's no surprise that mainland China is intensifying efforts to assert control over this island nation, as it seeks to secure this crucial capability and gain leverage in the global economy.
When the pandemic disrupted supply chains, the absence of these chips brought the automotive industry to a standstill. A modern vehicle can contain as many as 1,000 chips, managing everything from electric windows to the suspension system. Hundreds of cars remained idle outside factories, awaiting their essential components. Consequently, prices soared, and consumers have to contend with long wait times for new vehicles.
In the video “Chip War: The Fight for the World's Most Critical Technology,” Professor Chris Miller discusses the urgent significance of semiconductors in global politics and military strategy.
Section 1.2 The Military Implications of Chip Shortages
We are supplying Ukraine with advanced aerial defense and missile systems, while they contend with outdated Russian weaponry, some dating back to the 1960s. The technology in the systems we provide empowers a single Ukrainian soldier to neutralize a tank from a significant distance using a simple shoulder-mounted missile. This capability dramatically shifts the balance of power in warfare and beyond.
The Nature of Modern Conflicts
Historically, wars have been waged over oil, mineral resources, and fertile land. Today, the battleground has shifted to these minuscule silicon chips, which are now more valuable than gold. President Biden's significant investment in chip manufacturing and research serves as a strategic defense initiative, akin to funding naval ships or artillery.
We are fortunate to still lead in producing the machinery needed for semiconductor fabrication, allowing us to deny access to potential adversaries. However, this advantage alone is insufficient; comprehensive control over the entire semiconductor supply chain is essential.
The Chinese Perspective
China recognizes this urgency and may be willing to risk conflict over Taiwan to secure its semiconductor dominance. Unlike Russia, which struggles with outdated military technology, China's armed forces are modern and technologically advanced.
Consequently, they are under pressure to accelerate their efforts in this arena. The battle for semiconductor supremacy is underway, and it carries serious implications for global stability.
Chapter 2 The Broader Implications of Chip Wars
In the video “USA vs China, The War For The New World Currency: MICROCHIPS,” Chris Miller delves into how the semiconductor competition is reshaping international relations and economic power.
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