There are Increasing WAR over the CHIP

Today, almost every electronic device has chips inside. The world is now facing semiconductor or chip war. The competition between the U.S and China becomes intense for the chip. Semiconductor is an integral part of the modern digital economy, powering the internet and providing the foundation for critical technologies such as artificial intelligence, 5G, quantum, robotics, and autonomous vehicles. 

Semiconductor are also an essential tool in our national security arsenal, animating every major weapon and defense system as well as their command and control architecture, including GPS and space. Now Semiconductors have become a major geopolitical issue, especially in the U.S.-China rivalry.

Many PC processors, including those Apple uses, can currently only be made in Taiwan. Almost all of the graphics processing unit (GPU) chips that run artificial intelligence (AI) applications in data centers are made in Taiwan.

The battle to control this vital technology is at the forefront of U.S.-China competition, while dependence on Taiwan to produce the vast majority of the most complex chips has become a major focus for U.S. policymakers. 

Now it is a question of  trillion dollars who will win the chip war? Chip war is now a war more than the geopolitical conflict. A question comes on the implications in the future and who will win this war and who is going to be the scapegoat. 

The U.S.A, Asian countries like Taiwan, China, South Korea and Japan are the largest semiconductor producers in the world. Taiwan, China, South Korea’s companies account for 87% of the global market. At the same time, America always wants to halt China but China’s semiconductor industry continuous to advance at the 9%, its annual sales might reach $114 billion by 2024.

Today, TSMC produces 90 percent of the world’s most advanced processor chips, while Taiwanese companies produce over a third of the new computing power the world adds each year. TSMC has risen to become the world’s largest chipmaker for two reasons.

Memory chips, which store data, are relatively simple and are traded like commodities. Logic chips, which run programs and act as the brains of a device, are more complex and expensive. And as the technology running devices — from rockets to refrigerators — is getting smarter and more connected, semiconductors are ever more pervasive.

Finally, Chips are the brains of electronic devices and can be found in a range of products from cars to home appliances to smartphones and  the limitations in supply have had a ripple effect on the broader economy.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA