Pourquoi la Chine perd la guerre des microprocesseurs

Table of Contents

1. Introduction
2. The Importance of Semiconductors
3. The Rise of Chip Companies in the US
4. The Global Expansion and Trade Restrictions
5. China's Catch-Up Efforts
6. The Risk of Imported Silicon
7. China's Ambitions in Chip Design and Manufacturing
8. The Choke Points in the Supply Chain
9. IP Theft and Controversies
10. The Escalation of US-China Tensions
11. US Export Controls and Measures
12. The Impact on Taiwan and the Geopolitical Stakes
13. The Choices and Consequences in the Chip Industry
14. Conclusion

💡 Highlights:

• China's monumental effort to transform the semiconductor industry
• The struggle between China and the US in the chip industry
• The importance of semiconductors in the modern world
• The role of chip companies in the US and their government partnerships
• The global expansion and trade restrictions in the chip industry
• China's catch-up efforts and reliance on imported silicon
• China's ambitions in chip design and manufacturing
• The choke points in the global supply chain
• Controversies and IP theft in the chip industry
• The escalation of US-China tensions and the trade war
• US export controls and their impact on the chip industry
• The geopolitical stakes and the role of Taiwan
• Choices and consequences faced by countries and companies
• The implications of the US-China chip conflict

👉 The Rise and Conflict in the Chip Industry

The semiconductor industry has become one of the most significant battlegrounds in the escalating conflict between China and the United States. This high-stakes rivalry goes beyond market share and tariffs; it revolves around security concerns. In order to understand how China and the US have entered into a Cold War over computer chips, we must first delve into the history and importance of semiconductors.

1️⃣ The Importance of Semiconductors

Semiconductors, also known as microchips, are the building blocks of modern technology. They power everything from smartphones and computers to cars and spacecraft. The development of semiconductors has followed an exponential growth curve, with the computing power of a single chip doubling approximately every year, as predicted by Gordon Moore, the founder of Intel. The US, being the birthplace of semiconductor technology, initially had a strong grip on the industry.

2️⃣ The Rise of Chip Companies in the US

In the early years, chip companies in the US catered primarily to the needs of the government, especially in the military and space sectors. However, as the demand for computers grew, these companies realized the potential for expansion in the civilian market. To meet the demand and reduce costs, many chip companies started outsourcing their manufacturing and assembly processes to countries like Japan, Taiwan, South Korea, and Hong Kong.

3️⃣ The Global Expansion and Trade Restrictions

While the US encouraged its allies to grow their chip industries, it strictly controlled the sharing of technology with its rivals, namely the Soviet Union and China. This strategy aimed to maintain a technological edge and keep these countries years behind in chip advancements. However, China's exclusion from the global supply chain during the Cold War period did not dampen its determination to catch up.

4️⃣ China's Catch-Up Efforts

By the 1990s, China had opened up to the world, and its leaders recognized the importance of a domestic chip industry. With a heavy infusion of government funding and partnerships with non-Chinese firms, China made significant strides in chip design and manufacturing. While it could produce older generations of chips, it was still far behind in creating cutting-edge technology.

5️⃣ The Risk of Imported Silicon

Despite China's progress, it faced a significant challenge: its reliance on imported silicon from geopolitical adversaries like the US, Japan, and Taiwan. This vulnerability led the Chinese government to invest heavily in creating a self-sufficient chip supply chain within China. However, the Chinese government's acts of IP theft and attempts to replicate technologies like those of ASML became a point of contention.

6️⃣ The Choke Points in the Supply Chain

The global chip industry has evolved into a complex web, with specific companies and countries holding crucial positions. Only a handful of companies in the world possess the software, machinery, and manufacturing capabilities to produce advanced chips. These choke points, including the restriction on exporting advanced chips from the US, have made China highly vulnerable in its pursuit of technological self-sufficiency.

7️⃣ IP Theft and Controversies

IP theft has emerged as a significant concern in the chip industry, with China being accused of actively or passively supporting such activities. This has further strained the already deteriorating relationship between China and the US, resulting in a shift from an economic focus to a security-focused perspective. The US government has taken measures to protect its interests and maintain its leadership in the chip industry.

8️⃣ The Escalation of US-China Tensions

The escalating tensions between the US and China, characterized by controversies, trade wars, and tariffs, have significantly impacted the chip industry. The Trump administration enacted bans on companies like ZTE and Huawei, crippling their operations and limiting their access to advanced chips. The Biden administration has also adopted measures to restrict export and investment in China's chip industry, emphasizing the need for domestic resilience.

9️⃣ US Export Controls and Measures

The US has implemented export controls to disrupt China's chip industry and ensure its own primacy. These controls restrict the sale of advanced chips to Chinese companies, prohibit the use of US-made design software and manufacturing equipment, and even prevent global companies from selling advanced chips to China. Furthermore, the US has committed to investing in its own chip manufacturing capabilities and fostering partnerships with companies like TSMC in Taiwan.

🔎 Resources:

• ASML - www.asml.com