Financial Times: The semiconductor battle is a new industrial "big game"

Source: Financial Times

According to a report published by the Financial Times on January 28, the Financial Times pointed out that the struggle for dominance in the semiconductor industry is rapidly evolving into a great game in the industrial field similar to the 19th century, "when several rival powers clashed for control of Central Asia." Today's strategy is to take down resources and supply chains, force allies to take sides, and deny competitors strategic assets. But this modern game revolves around boosting intellectual capital, increasing industrial capacity, and developing the latest technologies. ”

The Financial Times notes that semiconductors have become a battleground for fierce geopolitical competition as the United States tries to strengthen its tech dominance and delay China's rise. U.S. Commerce Secretary Gina Raimondo this week urged Congress to pass the Chips Act, which would provide $52 billion in subsidies to domestic chip manufacturing. European Commission President Ursula von der Leyen has been pushing for a similar chip bill with the goal of doubling the EU's semiconductor production to 20 percent of global production by the end of 2030.

At the same time, the players competing in the global semiconductor market are playing higher and higher chips. This month, TSMC, one of the world's leading chipmakers, said it would raise capital spending to $44 billion this year, almost three times that of 2019. South Korea's Samsung Electronics has previously said it will significantly increase its semiconductor spending; U.S. manufacturer Intel announced this week that it will invest more than $20 billion to build two chip factories in Ohio.

However, the Financial Times pointed out that the basic national strength will play no less decisive role in the outcome of this industrial game than scientific and technological capabilities. In this regard, the United States has reason to worry: it will not even be able to promote 5G telecommunications networks without disrupting air travel. Finally, repairing core infrastructure at home may be more important than pursuing strategic technological advantage abroad.

(Proofreading/Semiconductor)