Advertisement
Opinion | Semiconductors now at the heart of US-China power struggle
- The tiny chips have become a key asset in the US-China tech war, with Washington stepping up efforts to protect its supply
- The US fears the reunification of mainland China and Taiwan – the world’s leading chip maker – would leave it out in the cold in the semiconductor race
Reading Time:3 minutes
Why you can trust SCMP
12
Are semiconductors set to replace oil and gas as the top strategic asset for global powers? The answer seems to be a resounding “yes”, given that they have become the centre of a global power struggle, especially amid growing Sino-US tensions over Taiwan.
Advertisement
Following the trade war begun during Donald Trump’s presidency, rivalry between the United States and China is now increasingly graduating to a tech war. US Speaker of the House Nancy Pelosi spent less than 24 hours in Taipei during her much-touted visit, but despite her tight schedule, she still managed to find time to meet Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chip maker.
The meeting was part of a long series of efforts by Washington to establish a semiconductor foundry in the US in collaboration with TSMC.
In today’s 5G communication environment, semiconductors are a critical component in everything from smartphones and hi-tech military weapons to medical devices and space stations.
Taiwan currently accounts for some 64 per cent of the global semiconductor market, with TSMC – which also provides the world’s most advanced microchips to companies such as Apple, Qualcomm and Nvidia – alone accounting for 54 per cent of global demand.
Advertisement
Advertisement