Battle of Chips: Role of Semiconductors in US -China Strategic Competition

Abstract

This Research study focus on the ongoing Battle of Chips between the two global powers US and China. Essentially, the study is based on role of semiconductor industry which is shaping the current strategic competition between both the great powers. No doubt there is no other relationship as significant as United States and China which is shaping the current and future world politics.The main focus is on the on the evolution and current position of semiconductor industries of both states and the policies and initiatives taken by the both states to safeguard and strengthen the domestic semiconductor industry and technological industry.United States of America and China are involved in fierce strategic competition which is more intensified because of role of semiconductors.The Rise of China in economy, military and most importantly in technology such as production of advanced chips, 5G, 7nm chips poses a threat to United States position in global politics. United States has imposed a couple of import restrictions measures, sanctions and high tariffs on Chinese semiconductor industry claiming it as national security concerns. US also restricts its technological allies to not export any kind of semiconductor component to China. To support the US domestic industry the state department has approved the Chip and Science Act 2022 to strengthen the domestic semiconductor industry while granting billion of US dollars. However China on other hand also introduced some of the Restrictions but they are not to retaliate United States, rather it acts as a legal framework to work upon and take actions. Chinese domestic semiconductor industry has achieved a number of milestone in relative less time period .By investing on local expertise and manufacturing through the Big Fund, China has maintained to create a strategic edge over the United States. Overall the strategic competition on semiconductor between the two global power is impacting the National Security, economy and geopolitics which has mentioned in this paper in detail. The stats and facts from recent years shows that semiconductor industry has been resulting in intensification of strategic competition between the both states.