Who Controls the Chips? The Geopolitical Scramble for Semiconductor Supremacy

Registration ID: IJNRD_220524

Published ID: IJNRD2405443

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Bhanu Viswas

US- China, Semiconductors, TSMC, Taiwan, Geopolitics, Geoeconomics, AUKUS

The world's reliance on semiconductors is growing, serving as the cornerstone of modern technology, but it faces significant geopolitical challenges. This study delves into the intricate interplay among government policies influenced by national interests and the complex semiconductor supply chain, with a focus on the United States, China, and Taiwan. The research examines how the strategies of these major actors influence the industry landscape, highlighting potential conflicts and disruptions in supply chains. Government policies play a dual role in fostering innovation and growth within domestic semiconductor industries. Initiatives like China's "Made in China 2025 plan" and the United States Chips and Science Act exemplify this, aiming to drive self-sufficiency and technological leadership. However, for Taiwan, the central hub of silicon production, balancing technological advancement with geopolitical pressures poses a unique challenge. Despite the complexities, these policy dynamics yield tangible benefits such as technological progress, job opportunities, and economic expansion. However, this intricate dance also lays the groundwork for potential conflicts. The pursuit of self-sufficiency can breed protectionism and trade barriers, fragmenting the supply chain and exposing vulnerabilities. The strategic rivalry between the US and China, intensified by the Taiwanese issue, adds another layer of uncertainty, potentially leading to disruptions and even military escalation. Such disruptions could affect everything from everyday consumer electronics to critical national security infrastructure. Thus, the issue transcends mere technological progress; it becomes one of managing geopolitical tensions to ensure the smooth flow of semiconductors, crucial for the global economy and security. The research presented here explores various conflict management strategies, including multilateral trade agreements and industry collaboration through diplomatic channels, emphasising the need for a cooperative approach to address vulnerabilities and build resilience, mitigating risks by recognising the interdependence of all actors within the semiconductor ecosystem. By untangling the intricate web of government policies and diverse geopolitical landscapes affecting the future of semiconductors, this article provides a profound comprehension of the factors influencing this pivotal industry. It offers insights for collective action among stakeholders to prioritise collaboration, ensuring the uninterrupted flow of semiconductors and preventing them from becoming pawns in geopolitical tensions, particularly in the Indo-Pacific region.

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Bhanu Viswas (May-2024). Who Controls the Chips? The Geopolitical Scramble for Semiconductor Supremacy. INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 9(5), e358-e379. https://ijnrd.org/papers/IJNRD2405443.pdf

Volume 9 Issue 5, May-2024

Pages : e358-e379

Paper Reg. ID: IJNRD_220524

Published Paper Id: IJNRD2405443

Research Area: Social Science and Humanities 

Author Type: Indian Author

Country: Noida, Uttar Pradesh , India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2405443.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2405443

Journal Name: INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT(IJNRD)

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