Semiconductors

Semiconductor chips are the electronic components that have electrical conductivity properties between that of a conductor and an insulator. This attribute helps them to control the flow of electricity and thereby store and process information. Because of this crucial function, semiconductor chips are used in numerous products that enable modern life, from electronic devices like computers and, smartphones, to automobiles. 

 

In particular, powerful countries such as the United States are showing significant interest and investing heavily in semiconductor technology. This technology is strategically important for the US at this juncture for several reasons. Semiconductor technology has now been established as the backbone of modern economies. Since it is used in a wide range of applications, the semiconductor industry plays a major role in the US economy, generating significant revenue, creating high-paying jobs, and driving innovation and productivity. Nevertheless, the fabrication of the most advanced chips has moved to other parts of the world. In addition, there is a geopolitical competition in this industry, notably from China. The Chinese government has made a significant investment in the development of its domestic semiconductor industry, and some experts believe that China could eventually surpass the US in this field. The US sees the development of its semiconductor industry as critical to maintain its technological edge and competitiveness in the global economy. 

 

In this regard, the US government is taking several actions to secure its dominance in the semiconductor industry. They decided to restrict export of advanced semiconductor technology to countries deemed to be national security risks, including China. They also add Chinese semiconductor companies to the US entity list, which restrict their access to US technology. The US is also attempting to mobilize its allies in this effort to secure the semiconductor supply chain and key technologies. They already made an alliance with Japan and Taiwan, which are the two countries with strong semiconductor industries, to promote collaboration and information sharing.