US-China tech war: battle over semiconductors, Taiwan stokes trade feud
- Semiconductors are the cornerstone technology of the information age and key to the US-China tech war, as well as both nations’ relationship with Taiwan
- China trails the US, South Korea and Taiwan in the production of chips but is rolling out a suite of measures to bolster research and financing for the sector
As voters in the United States prepare for the presidential election on November 3, the South China Morning Post is exploring the potential ramifications for China. The 12th part in the series looks at the importance of semiconductors in the deteriorating US-China relationship. Read the entire series here.
A spiralling tech war between the United States and China has reinvigorated Beijing’s ambitions for semiconductor independence in recent months and turbocharged efforts in Washington to thwart its plans, leaving chip-making powerhouse Taiwan caught in the crossfire.
Tensions have escalated between the countries on multiple fronts this year, from the coronavirus pandemic to Hong Kong, but it is in the field of trade and technology where the Trump administration has worked most diligently to put pressure on Beijing.
What’s at stake is mastery of the tiny electronic devices – usually smaller than a postage stamp – that power the modern economy by acting as data-processing brains for products, from smartphones to cars and spacecraft.
01:46
Oracle reaches deal to become TikTok’s ‘technology partner’, after Microsoft offer is rejected
The semiconductor industry is also critical to a suite of advanced technologies- including the next generation of wireless networks, artificial intelligence and connected devices – that could give either country an economic edge in the future.
