reports

The chip wars

Written by futuretech on .

By

Richard Murch

Chief Partner

Taiwan, the chip foundry of the World

INTRODUCTION

There is a computer chip war that many people, industries and governments are not familiar with. This is between the United States and China – one of many wars between these two countries in high technology arenas in recent years. It is ongoing and unclear who will be the ultimate winner of chip wars will be. read analysis below…

DISCUSSION

The United States and China have been locked in a battle over the control of the world’s computer chip market for years. The two countries are the largest producers of computer chips, and the competition between them is fierce. The United States has accused China of unfair trade practices, including subsidizing its own chip industry and stealing American intellectual property – which China has done repeatedly over many years. China’s attitude is “ if we can’t create it – we will steal it”.

In response, China has placed tariffs on American chipmakers, making it more difficult for them to do business in the Chinese market. The battle between the United States and China for control of the computer chip market has been costly for both sides. American chipmakers have been forced to move production facilities out of China, and Chinese companies have been blocked from acquiring American chipmakers.

The fight is unlikely to end anytime soon, as both sides are unwilling to compromise. The United States is concerned about losing its position as the world’s leading chip producer, while China is determined to catch up to the United States and become a major player in the global chip market.

THEN THERE IS TAIWAN

Taipei


The United States has long been a world leader in the development and production of computer chips. It was the first country to invent and develop the computer chip – hence giving the name to “Silicon Valley” where much of the early work was accomplished. However, in recent years, Taiwan has emerged as another major player in the industry, with its companies producing some of the most advanced chips in the world. The computer chip industry is important to the United States for several reasons.

First, the chips are used in a wide range of products, from computers and cell phones to automobiles and military equipment. Second, the chips are a key component of many high-tech industries, such as telecommunications, medical devices, and aerospace. Third, the chips are a major source of revenue for the United States. In 2017, the chips generated more than $300 billion in sales for American companies. fourth, the chips are a critical part of the U.S. economy, with more than 700,000 jobs directly or indirectly related to the industry. Finally, the chips are a key part of the U.S. military’s technological superiority. The chips are used in a wide range of military applications, from guidance systems to missile defense.

Taiwan is now a critical part of the global computer chip industry. The island nation is home to some of the world’s largest chipmakers, including

  1. Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC). TSMC is the largest contract chipmaker in the world, with more than half of its revenue coming from the United States.
  2. UMC is the second-largest contract chipmaker in the world and is also a major supplier to American companies.
  3. In addition to TSMC and UMC, Taiwan is home to several other major chipmakers, including MediaTek, GlobalFoundries, and ASE. Taiwan’s chipmakers are important to the United States for several reasons.

First, they are a major source of revenue for the United States. In 2021, TSMC alone generated more than $60 billion in sales for American companies. Second, Taiwan’s chipmakers are a critical part of the global supply chain for chips. The island nation is home to several key manufacturing facilities, including TSMC’s 12-inch wafer fab in Tainan and UMC’s 12-inch wafer fab in Taichung. Third, Taiwan’s chipmakers are a major source of employment for the United States. In 2021, TSMC alone employed more than 45,000 people in the United States. Fourth, Taiwan’s chipmakers are a key part of the U.S. military’s technological superiority. The chips are used in a wide range of military applications, from guidance systems to missile defense. Fifth, Taiwan’s chipmakers are a major source of investment for the United States.

In 2017, TSMC invested more than $1 billion in the United States in new manufacturing operations. The computer chip industry is important to the United States for several reasons. Taiwan is a critical part of the global industry, with its companies producing some of the most advanced chips in the world. The chips are a major source of revenue for the United States and are a critical part of the U.S. economy. In addition, the chips are a key part of the U.S. military’s technological superiority.

So, China’s claims to Taiwan are more than just a territorial part of China. Wealth and chip superiority dominance in the world is a major factor. The United States has a long-standing commitment to support the people of Taiwan in their quest for a peaceful and prosperous future. This commitment is based on our shared values of democracy, human rights, and the rule of law. The United States will continue to provide Taiwan with the arms it needs in order to defend itself. The United States stands with the people of Taiwan and will continue to support their right to choose their own future – and continue its vital role in the development of computer chips.

SUMMARY

This clash of these two countries will continue for the foreseeable future. Each will produce faster, cheaper, more powerful chips and software and sell to its customers – year after year.

We find the situation in Taiwan to be particularly worrying as China ups its threats, military exercises and bellicose treatment of a small Island. We draw an analogy to the situation in Hong Kong where China broke its agreements with the United Kingdom and forced its will on the people and industries of Hong Kong.

An invasion of Taiwan by China would certainly lead to a severe armed conflict with the United States and possibly other countries as well. The Chip wars will not only be a path of War.