Semiconductors, strategic weapon of the economic war between the United States and China

Shares of semiconductor producers fell sharply this week in Asian markets, after Washington announced drastic restrictions on its chip exports to China. France 24 decrypts the strategic issues of this component, used by the United States as a weapon to curb Chinese influence. The technological war between the United States and China has entered a new phase with the announcement on Friday, October 7, of drastic measures to limit exports of semiconductors to China. US President Joe Biden intends to take advantage of the technological advance of the United States in this strategic sector to curb the hegemonic, economic and military progress of his main rival. For his part, President Xi Jinping is trying to reduce dependence Chinese company with the aim of becoming the world leader in the sector. Already in 2018, the Trump administration banned Chinese telecommunications company ZTE from buying US-designed semiconductors, driving the company to the brink of bankruptcy before finally suspending the measure. , the Covid-19 crisis has been there, revealing a little more the strategic value of these chips, the shortage of which has driven up inflation and had a lasting impact on the pro duction of electronic goods internationally. To analyze in detail the geopolitical implications of this sector, France 24 spoke with Chris Miller, director of the Eurasia program at the American think tank Foreign Policy Research and author of the best-selling book “Chip War”. 04:44 Brussels will inject nearly 50 billion euros into the semiconductor sector © DR France 24: Can you explain to us what semiconductor chips are and how they have become so central to the economy world and everyday life? Chris Miller: Semiconductors are small pieces of silicon with billions of tiny circuits etched into them. These circuits provide the computing power inside almost all devices with a switch: smartphones, computers, data centers, cars or even dishwashers. An ordinary person interacts with dozens, even hundreds of semiconductors every day, almost never seeing them. Has this technology, invented in the United States, played a decisive role for the American military sector? he American computer advantage was crucial during the Cold War. From the earliest days of the missile race, the Pentagon has focused on applying computer power to defense systems. The first major application of chips was in missile guidance systems, but today they are used in everything from communications to sensors to electronic warfare. In the same way that any person interacts with Dozens of chips every day, the military crucially depends on the chips’ power and signal processing capability. Moreover, as the military begins to experiment with more and more autonomous systems, their dependence on these chips only increases. Do you think that President Joe Biden’s move to relocate to United States a larger share of chip production, is a wise strategy? Today, 90% of the world’s most advanced processor chips are produced in Taiwan. The TSMC company is the number one manufacturer in the sector, thanks to its enormous size and its extraordinary manufacturing precision. Its cutting-edge chips power everything from smartphones to PCs to data centers. billions of dollars. Given Beijing’s growing military power and Xi Jinping’s aggressive nationalism, this is a risk that has become too great for the global economy. From this perspective, the effort to diversify manufacturing areas of advanced chips is totally justified. This explains why the United States, Japan and Europe are all trying to strengthen their position in the semiconductor supply chain. Europe is often seen as lagging behind in high technology, but a Dutch company, ASML, has managed to carve out a place for itself in this market. What role does it play? ASML produces the machines essential to the manufacture of these cutting-edge chips. This company specializes in electronic lithography (technique for printing and reproducing circuits) and has a 100% market share in the production of the most advanced machines in this field. It has honed these capabilities over the years and is now a critical supplier to companies like Samsung, TSMC and Intel. Do you think China has the wherewithal to match or even surpass the United States in semiconductors? For several years, Washington has been concerned about the national security implications of China catching up in the semiconductor sector, particularly in light of the government’s “Made in China 2025” initiative. Xi Jinping, who makes chips a top priority. China has invested tens of billions of dollars in government chip development programs. These programs have made substantial progress in some areas, including design. manufacturing. In addition, all chip production in China now relies on machine tools imported from overseas, mainly from the United States, the Netherlands and Japan. Article translated from the original, in English, by David Rich