The U.S.-China Tech War: A Threat to American Innovation and Prosperity
- 4 months ago
Semiconductors are the common element inside four very different things: smartphones, cars, toasters, and fighter jets.
"Semiconductors are essential for the tech industry," said Stacy Rasgon, a senior semiconductor analyst at Bernstein Research.
The global semiconductor industry is worth $574 billion and is expected to reach a trillion dollars by 2030. However, the industry is also the target of a conflict between the U.S. and China, two of the biggest economies in the world.
The U.S., which has the largest share of the global semiconductor market, recently imposed strict limits on the export of advanced chips and chipmaking tools to China, in order to block China's access to vital technologies. The Biden administration said that the export controls are partly to stop China from using American-made chips in its military. China, on the other hand, said that the U.S. is using export restrictions to hinder China's technological progress.
"China cannot have our most advanced semiconductor chips for its military," U.S. Secretary of Commerce Gina Raimondo said in a CNBC interview on Oct. 30, 2023. "That's the line we've drawn."
Watch the video above to learn more about how the semiconductor industry became the focus of a tech war between the U.S. and China, and what the possible consequences are for the companies that are stuck in the middle.
"Semiconductors are essential for the tech industry," said Stacy Rasgon, a senior semiconductor analyst at Bernstein Research.
The global semiconductor industry is worth $574 billion and is expected to reach a trillion dollars by 2030. However, the industry is also the target of a conflict between the U.S. and China, two of the biggest economies in the world.
The U.S., which has the largest share of the global semiconductor market, recently imposed strict limits on the export of advanced chips and chipmaking tools to China, in order to block China's access to vital technologies. The Biden administration said that the export controls are partly to stop China from using American-made chips in its military. China, on the other hand, said that the U.S. is using export restrictions to hinder China's technological progress.
"China cannot have our most advanced semiconductor chips for its military," U.S. Secretary of Commerce Gina Raimondo said in a CNBC interview on Oct. 30, 2023. "That's the line we've drawn."
Watch the video above to learn more about how the semiconductor industry became the focus of a tech war between the U.S. and China, and what the possible consequences are for the companies that are stuck in the middle.