The fight for dominance of semiconductors

Very little is said about this issue in the media, but that doesn’t mean that the fight is less harsh. And it is very logical since semiconductor technology is applied in all types of products, and especially in the most sophisticated.

Semiconductor technology is at the center of global geopolitics and is a decisive factor for those who want to maintain the advantage in the field of Defense. And that is what the USA does.

According to 2019 data, the USA sells 50% of the world’s semiconductors (although many of its factories are abroad), followed by Korea (20%) and Japan (10%); and China only produces 5% even though it makes many other products.

In fact, China spends on importing semiconductors on the order of 300,000 million dollars a year (most of the factories in the USA), which is more than it imports in oil.

Faced with this situation, China long ago set out to become self-sufficient in the manufacture of chips by 2030, and one of the leading countries in this field. But intentions are one thing and reality is another.

The USA are putting all kinds of obstacles to this technology transfer to China both from their companies and from companies from other “friendly” countries and over which they have influence.

For its part, China is investing in chip-making facilities (called fabs) that are tremendously expensive and highly sophisticated to operate, thus hiring engineers from around the world with experience in these types of factories.

China will certainly improve its current situation, but it remains to be seen whether it will catch up with the USA, Korea and Japan, which are more than a dozen years ahead.

We see that the issue of control of semiconductors has also become “critical” for some companies like Apple that has decided to develop and manufacture processors for their products, to be autonomous and independent.

I think that the development of Artificial Intelligence is also going to take steps in that sense, since there will be increasingly more powerful “chips” that are capable of performing more complex functions, and the one that dominates semiconductors will be positioned at the head of said technology.

Whoever be the president of the USA, I am sure that he will continue to maintain these policies to stay on the front line of semiconductor technology for as long as possible.

Europe should wake up from its slumber and increase its share in world semiconductor production. Today it manufactures slightly less than Japan and half that of Korea. And this is a clearly improvable situation.