After Donald Trump banned Chinese companies from using American-made microchips, it appears that the law of unintended consequences is working against America. Over the past four years, China has significantly increased its computer chip production. This growth has led to Huawei becoming the second-largest mobile phone brand in China, marking a remarkable turnaround. The rapid advancement of China in producing high-end microchips, such as the level 7nm chip powering the Huawei Mate 60 and iPhone XS, has surprised the US intelligence network. This is in contrast to the more advanced 5nm chip in the iPhone 13 and the 3nm chip in the iPhone 15 produced by Western companies.
China has taken a further step by implementing measures to replace US-based operating systems (Microsoft), database products, and microprocessors (Intel and AMD) with locally developed Chinese alternatives in government offices. This will have a spillover effect across the Chinese business sector. The Chinese government has cited "safety and reliability" as the primary reasons for this shift, mirroring the security concerns raised by the US regarding Chinese-based systems.
In 2023, China accounted for 27% of Intel's $54 billion and 15% of AMD's $23 billion revenue. The implications of these actions are significant, and the future actions of the US under the current Biden administration or any future administration will be closely watched.
The broader question raised by these developments is who benefits when superpowers engage in such conflicts. While the competition may lead to advancements in technology, the aggressive pursuit of dominance in microprocessor technology raises concerns about the impact on global innovation and collaboration.
Chris Miller, author of Chip War, aptly summarizes the situation by stating, "If you import most of your chips, you're not a manufacturing superpower; you're just assembling high-value components produced elsewhere."
The US-China tech war has escalated into a multifaceted conflict encompassing technology, economic dominance, national security, and global influence. This battle for technological supremacy between the two superpowers has reshaped global alliances, trade relationships, and the trajectory of technological innovation. Taiwan and Malaysia's pivotal role in semiconductor production has positioned the Asian countries as key players in this tech war, underscoring the intricate interplay between geopolitics and technology.
The unintended consequences of Donald Trump's ban on Chinese companies using American-made microchips have catalyzed China's rapid advancement in computer chip production. This growth has propelled Huawei to become a major player in the mobile phone market, showcasing China's technological prowess. China's strategic measures to replace US-based technology with domestic alternatives in critical sectors like government offices reflect a broader trend of self-reliance and security concerns driving national policies.
The implications of these actions, with China accounting for a significant portion of Intel and AMD's sales, highlight the profound impact of the US-China tech war on global tech markets. The competition between the US and China in microprocessor technology raises questions about the balance between technological advancement, market dynamics, and national interests. The conflict not only shapes the tech industry but also influences broader international relations and the future trajectory of global technological development.
As the US and China navigate this complex tech war, the broader question of who benefits from such conflicts remains pertinent, with implications for global innovation, collaboration, and the evolving geopolitical landscape.
Interesting times ahead. I would love to see what retaliatory or olive branch the US will use under the current Biden administration or the incoming one. And where does Africa, and the Global Majority sit in the global scale of things?
Great heading here:
Sources Retrieved on 28 March 2024.