Its importance is great… Between China and America, who controls the electronic chip industry?

′′ We invented it and we will recover it ′′ With this phrase, US President Joe Biden, during his visit to a semiconductor factory in North Carolina, charted the next phase of events in the global electronic chip industry. What the US President said a few days ago is not just a small detail, but rather indicates the American view of the course of things in this industry during the coming years.

Who invented chips?

US President Joe Biden said that the United States invented electronic chips, thanks to its space program, considering that America, over a period of 30 years, was manufacturing 40 percent of the total global chip production, and then something happened and this industry moved outside the borders and as a result Today, America manufactures only about 10 percent of the global production of electronic chips, despite its leadership in research and design in new chip technology.

Reclaim the fore in the chip industry

US President Joe Biden confirmed that his administration is working to restore America’s lead in this industry, which explains all the steps that Washington is taking, in order to support the transfer of global chip factories to its lands, in addition to the punitive measures against China, which aims to prevent it from excelling in this field. the field.

What is this strategic commodity?

An electronic chip is a piece of metal made of silicon, and it contains multiple layers integrated professionally, and it includes an interconnected group of transistors, enabling it to produce the necessary electronic signals, to turn on and off various electronic devices according to the specific programming, and without this chip there is no value for any smart product In the world, and this is exactly what turned it into a strategic commodity at a time when all the world’s devices are turning to digitization.

Electronic chips can come in multiple sizes, and their complex manufacturing process requires the use of advanced technologies, as they need careful monitoring, in terms of temperature, pressure, material concentration, and cleanliness.

Nothing works without chips

In light of the digital transformation that the world is witnessing, electronic chips have become the vital nerve of multiple industries, without them nothing works, starting with electrical appliances, mobile phones, cars, planes, and communications networks, through data centers, computers, production devices in laboratories, and modern medical devices, all the way to armament systems, aircraft and missiles. warfare, including nuclear weapons.

Therefore, any country looking to play a decisive role in the digital future of the world must control a large part of the global chip industry, which has become a decisive industry in all aspects of human existence.

How did America lose its position?

The United States has always been considered one of the pioneers in the electronic chip industry in the world. Indeed, as US President Joe Biden announced, it controlled about 40 percent of this industry in 1990, but its market share has eroded, to become today about 10 percent. This decline is caused by the transfer of the production of production plants from the American lands abroad, specifically to East Asian countries, due to the decrease in production and operating costs there.

In light of the digital transformation that the world is witnessing, America belatedly realized the importance of this strategic industry and the horror of the mistake it made. Although the electronic chip industry is still under the full control of its allies, that is, Taiwan and South Korea, Washington wants to return this industry to its lands, and remove it as much as possible. about Chinese spheres of influence.

Who controls the industry now?

The size of the electronic chip market around the world is about $ 430 billion, and the most prominent players in this market are Taiwan, South Korea, China, the United States of America and Japan.

Currently, Taiwan produces about 60 percent of the world’s chip market, and it sells 90 percent of this production to the United States, while China consumes the remaining largest part of the global production of electronic chips, as it deliberately buys its available chips. Especially after the American response to it in this field.

There is no value for any American missile without it!

Technology analyst Hisham Al-Natour considers that if we carefully examine the numbers, we will understand why the United States is seeking to transfer the production of the electronic chip industry to its territory, as 90 percent of America’s need for these chips comes from the state of Taiwan, which China does not recognize its existence, and considers it a territory. It is affiliated with it, and therefore any Chinese move to control Taiwan means the disruption of the United States’ ability to obtain the metal piece, without which any tank, missile, laboratory, car or plane has no value.

Al-Natour adds that what US President Joe Biden says is correct, as America is the one who invented the chips, and until now it controls two out of the three sections that make up the electronic chip industry, as America still dominates 85 percent of the research, development and design fields for chips. It also controls everything related to chip production equipment and lines, while losing the part related to the production, packaging and distribution process to Taiwan.

The more America advances, the more it clamps down on China

According to Al-Natour, everyone should realize that the issue of restoring America’s leadership in the electronic chip industry is a goal that Washington cannot turn away from, under any circumstances, and it will seek to achieve it by using everything it can to stop China. The pace of events related to this industry accelerated in 2022, and it will witness more events during 2023, as the hundreds of billions of dollars that America spends on programs to support and attract electronic chip manufacturers to its lands is just the beginning of a long path of events that the world will witness in the coming years. The more America advances in this industry, the more it can clamp down on China.

America’s terms

A few days ago, the US Department of Commerce asked chip manufacturers that want to benefit from the federal support plan for the chip industry, amounting to $ 39 billion, to sign an agreement that prevents these companies from increasing their semiconductor production capacity in some foreign countries for a period of 10 years. years, after taking advantage of the support.

It would also require companies that have received funding not to knowingly engage in any research involving sensitive technologies or products with a relevant foreign entity.

In addition to taking advantage of the financial support, the US Department of Commerce has revealed a tax rebate of up to 25 percent for program participants.

Progress thanks to our money, is limited to us only

Al-Natour describes the American move by placing conditions on everyone who wants to benefit from the funds of the subsidy plan, as tangible evidence of the way America has come to think, and it is as if he says that the progress that this industry will achieve thanks to our money, should be limited to us only, and no party has the right to Take advantage of it.

US preemptive steps against China

According to Al-Natour, everyone should realize that China, in its current situation, does not pose a threat to America in the chip industry. The superiority in this industry is not in the hands of China, but rather Taiwan, which is America’s ally. However, the sanctions and laws imposed by Washington, which limit China’s ability to Progress in the electronic chip industry is just preemptive steps aimed at slowing down the pace of China’s development in this field, which paves the way for America to move to safety and control this industry.

Al-Natour explains that China is the only competitor that has the intention and ability to challenge the United States in the field of the chip industry. The Chinese government also spends hundreds of billions of dollars in order to support this industry and achieve self-sufficiency, something that it will be able to achieve no matter how severe the US sanctions are, pointing out. China is pressing hard to excel in this race, and it has developed many chip design companies in recent years, but it is still unable to make advanced chips needed for heavy industries.

Whatever the identity of the president of America

Al-Natour concludes his speech by emphasizing that the electronic chip war between China and America will not stop, regardless of the identity of the president who rules the United States. A threat to its capabilities, and therefore all expectations say that the bitter conflict between the United States and China will continue for a long time.

A matter of life and death for America

For his part, Amer Al-Tabash, a consultant in information and communication technology affairs, says that the issue of electronic chips has become a matter of life or death for America, pointing out that letting China control the issue of electronic chips, or the semiconductor industry, is a disaster for America, at a time when chips stand, Behind every smart product in the world, today there is no basic industry that does not include these chips in its operation, from vehicles to the communications industry.

To prevent a repeat of the Chinese 5G scenario

According to Al-Tabash, America does not want to put itself at the mercy of China, and this explains the successive steps it is taking to restore this industry to its lands, in order to prevent a repetition of the scenario of Chinese supremacy, which occurred in the fifth generation technology, as the idea of ​​​​China controlling the supply of electronic chips frightens America, therefore, considers it a matter of national security, which explains the US President’s personal intervention in this matter, and his attempt to reassure the Americans that they will not be under the control of the Chinese in the matter of electronic chips.

It is more expensive to produce in America

Al-Tabash explains that America has prepared a solid plan to recover what it considers itself lost, as this industry is very accurate, and it needs years of preparation, indicating that the American production of chips will be more expensive for users in financial terms, as America does not have the raw materials for the chip manufacturing process, and it is It needs to be purchased from several suppliers, while these materials are present in China and some Asian chip-producing countries, which reduces their cost there. (Sky News)

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