Tech war poll shows US set for ‘commanding position’ in chip race with China

Semiconductor industry leaders predict chip rivalry will lead to supply chain split, with few prioritising Chinese market, survey says

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More than 70 per cent of semiconductor industry executives expect Washington and Beijing will continue to erect barriers to technology collaboration, according to a new survey. Photo: Reuters

Orange Wangin Beijing

Published: 6:00pm, 16 Aug 2024Updated: 3:13pm, 25 Sep 2024

The US and its allies are likely to secure a “commanding position” over China in the future global chip sector, where two separate supply chains are expected to take shape, according to a recent industry survey.

“Respondents view US-China technology competition, which is driving the emergence of distinct US-centric and Chinese-centric supply chains, as the most significant threat to the semiconductor industry,” said a report based on the poll of more than 130 semiconductor business leaders from the United States, Europe, mainland China, Taiwan and other regions.

Over 70 per cent anticipated that both Washington and Beijing would continue to erect barriers to technology collaboration, according to the survey conducted jointly by Integrated Insights, an advisory firm for technology companies, and Global Semiconductor Alliance, an industry organisation.

The survey found that nearly 80 per cent of the business leaders expected the global technology industry to split into “two separate supply chains to serve the respective US and mainland Chinese markets”.

Nearly 40 per cent of the surveyed executives said they planned to concentrate their resources on the US-aligned supply chain, while 15 per cent of respondents said they would prioritise the China-aligned one.

Even respondents in mainland China were more optimistic about the prospects for the American technology ecosystem in the regions that make up the Global South, including India, Latin America, Southeast Asia and the Middle East, with 84 per cent of them choosing the US as the most attractive location for talent.