Global Chip War Disrupts Semiconductor Industry and Supply Chains

The ongoing "chip war" has significantly disrupted the global semiconductor industry and supply chains, creating a ripple effect that is felt worldwide. Recently, major companies like TSMC and Samsung have faced new restrictions imposed by the United States on the export of advanced chips to mainland China. This move is part of a broader strategy by the Biden administration to establish a technological barrier, often referred to as a "chip iron curtain," against China. The pressure is not limited to these companies; firms like Tokyo Electron and ASML are also under scrutiny to ensure they comply with the U.S. ban on high-end chipmaking equipment exports.

The Biden administration's aggressive stance on this issue began during the height of the U.S. presidential election and has continued into the current administration. In September, a significant government support policy was introduced, known as the CHIPS Incentives Program. This initiative aims to foster sustainable growth in the domestic semiconductor industry, emphasizing the importance of U.S. economic and national security. However, this has not come without its challenges. U.S. allies, including South Korea, Japan, and the Netherlands, have expressed concerns that their companies are bearing the brunt of the costs associated with the U.S. "chip war."

As the U.S. continues its efforts to restrict key exports to China, affected companies from allied nations seem more willing to cooperate. They hope that by complying with U.S. demands, they will leave a favorable impression on the incoming administration. However, there is a growing concern that the next U.S. administration may not recognize or compensate these companies for their sacrifices. This situation raises questions about the sustainability of the politically motivated "chip war."

Even if the U.S. were to achieve its goals in this conflict, the consequences could be severe. The impact would not only hinder China's technological advancements but also deprive many developing countries of their right to progress in science and technology. This could lead to a scenario where these nations remain stuck at the lower end of the value chain, reminiscent of colonial practices that they would understandably resent.

It is crucial for the U.S. to reconsider its approach and view China's development as an opportunity rather than a threat. A collaborative effort between the two nations could pave the way for mutual benefits, fostering a more stable global industry and supply chain. The current trajectory of the "tech war" is detrimental, as it undermines international stability and could ultimately backfire on the U.S.

China has made it clear that it opposes the decoupling of economies and the breaking of supply chains. It advocates for a fair and transparent international economic system that benefits all countries, especially developing nations. By pushing technology-related development issues to the forefront of international discussions, China aims to ensure that the fruits of development are equitably shared.

The ongoing "chip war" serves as a reminder of the complexities of global trade and technology. The U.S. must recognize that containing China will not resolve its own challenges. Instead, fostering cooperation and understanding could lead to a more prosperous future for all nations involved. The world is interconnected, and the path forward should be one of collaboration rather than conflict.