In a twist as dramatic as your favorite binge-worthy series, the global semiconductor industry is facing a crossroads. Recent U.S. measures aimed at limiting the Chinese mainland's semiconductor role are sparking concerns about a fractured supply chain. 🚀
Semiconductors power everything from smartphones to advanced defense systems. With 39 countries directly involved—from design and manufacturing to packaging—the industry is built on a robust, worldwide network. Every piece matters!
The Chinese mainland stands out as both the largest consumer market and a key manufacturer, investing heavily in research and development and building a resilient supplier network for raw materials and specialized machinery. Its role is vital in keeping technology affordable and innovative.
However, legislative moves like the CHIPS and Science Act and the so-called Chip 4 Alliance are shaking things up. The suppression of major players such as Huawei has already contributed to a global chip shortage, and now other regions are drafting their own chip acts, setting the stage for what looks like a tech arms race. 🤔
If every region builds its own system, we risk fragmenting the supply chain—stalling progress, hiking costs, and dampening global innovation. In this high-stakes game of chips, the big question remains: protectionism or progress?
Reference(s):
Breaking the global semiconductor supply chain: Counterproductive
cgtn.com
