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Thursday, 2 May
economy

China and the United States are one step away from "war": technological dominance in the world is at stake

Contradictions between the United States and China are growing, and today the most intense struggle between them has unfolded in the technology sector, in particular in the segment of microchip development and production.

Apostrophe reports on this in its article.

Microchips (also known as microcircuits, semiconductors) are essentially the "brain" of electronics and electrical engineering - smartphones, laptops, modern cars (primarily unmanned vehicles) - without which they simply cannot function. In addition, microchips play a key role in the development of artificial intelligence and the creation of state-of-the-art weapons.

About 90% of the most modern and fastest microchips are currently produced in Taiwan. The undisputed leader in their production is Taiwan Semiconductor Manufacturing Company Limited (TSMC). In fact, it fulfills orders for chip companies, the largest of which is the American technology giant Nvidia.

The US and some of its allies have imposed a ban on the supply of state-of-the-art chips and equipment for their production to China in order to catch up with China's technological backwardness. However, China is investing huge amounts of money in semiconductor production and is closing this technology gap.

The United States is currently highly dependent on Taiwan for the production of microchips, and therefore is trying to expand its own production capabilities, as the capture of the freedom-loving island by China or even its blockade would be a real disaster for the United States.

In particular, TSMC is going to launch two chip manufacturing plants in US state of Arizona. And South Korea's Samsung has ambitious plans to build 11 factories in Texas, which will be stimulated by tax incentives.

The European Union also has high hopes for chip production facilities. As of today, it is known that Taiwan's TSMC and the US-based Intel are planning to build their plants in Germany, and by 2030, semiconductor production in the EU should reach 20% of the world's total.

Until the fabs are built, the US and China have begun to significantly limit the supply of microchips to the global market, which could lead to a shortage, causing damage to the global economy.