The British edition analyzed the "cold war" in the semiconductor industry
Recently, the global semiconductor industry is facing serious problems. This is written by the British edition of Verdict. According to the author of the publication, there is already a shortage of chips and advanced microprocessors in the world. The trend towards economic nationalism was strengthened during the coronavirus pandemic and has reached its maximum now, against the backdrop of events in Ukraine. Now countries do not want to share either advanced technologies or new microprocessors and microcircuits. The publication calls it a "cold war" in the semiconductor industry.
At the same time, the semiconductor industry is seeing increased competition between the US and China. Now the Celestial Empire is rapidly breaking into a leading position in the field of artificial intelligence, which implies success in the semiconductor industry. The US is trying to resist this process and impose restrictions on the sale of chips to China, while supporting Taiwan.
For example, on October 7, the US announced a new set of restrictions on the sale of chips used for artificial intelligence. This led to a fall in the shares of chipmakers NVIDIA and AMD. Thus, we see that competition in the industry is only growing, and governments are trying to introduce restrictive measures to prevent technology leakage.
Separately, it is worth noting the influence of geopolitical alignments on the semiconductor industry. Thus, Taiwan still plays a key role in the production of semiconductors. The risk of a Chinese attack on the island is very scary for the United States, because then supply chains of semiconductors for the needs of American industry could be disrupted. Now Taiwan produces 92% of advanced chips.
On the other hand, China is also experiencing serious inconvenience, since US restrictions prevent the full development of the semiconductor industry in Beijing. The European Union is trying to increase its own production, for which the EU recently passed a law on chips, which aims to regulate the production of semiconductors.
Thanks to paternalistic measures in the economy, chipmakers are scaling up their production in the EU and the US. For example, back in March 2021, Intel announced investments of up to 80 billion euros in the European Union over the next 10 years. True, at that time the European Union did not yet have exorbitant inflation and high energy prices. It was about investments in scientific and technical research and production. In addition, the company plans to open new facilities in the US, namely in the state of Arizona, where it plans to launch two plants.
Smaller players in the market are also opening new enterprises, for example, the Dutch company STMicroelectronics, which is going to invest 730 million euros in the construction of a plant for the production of materials for microcircuits in Italy. Now construction is also under question, primarily because of the high cost of energy.
Moreover, geopolitical risks remain too significant an obstacle to the full development of the semiconductor industry. But there are no trends to change the situation. Rather, competition and rivalry in this area will only increase.
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