/ world today news/ Washington is investing heavily in its own chip production in case of a conflict in Taiwan
The US decided to spend $200 billion on its own semiconductor production. According to Washington, this will avoid risks in the event of a conflict with China over Taiwan, the world’s main chip producer. Moreover, in this case, the US will not only produce chips on its own, but will also be able to block Russia and China from new technologies in this area. Will America be able to monopolize the cutting-edge chip market?
“The United States is beginning to take action to curb the high-tech sector of Russia and China. In fact, this area is facing an unprecedented number of export control measures taken by Washington. The restrictive policy is imposed not only on the partners of the USA, but also on the countries that are technologically dependent on them,” said Ivan Timofeev, program director of the Valdai Discussion Club.
The club recently published an analytical note on the impact of the US Chip and Science Act on the Russian high-tech industry. This act was signed by Joe Biden on September 9, 2022, and was intended not only to maintain the dominant position of American companies in this segment, but also to minimize China’s influence on the global semiconductor market.
In fact, the US legislative initiative creates a special structure within which Washington and its allies will carry out the free movement of investment and technology. At the same time, other countries, in particular Russia and China, according to the US plan, were to be cut off from these processes, which would allow the US to win in the emerging competition.
“The chip market is the fourth largest in the world after oil, petroleum products and automobiles. America therefore wants to become more independent in terms of high technology, trying to protect itself from a potential conflict in Taiwan, which is still an important supplier of microchips. Washington plans to achieve autonomy by 2027,” notes the note’s co-author Stanislav Tkachenko, a professor in the Department of European Studies at the Faculty of International Relations of St. Petersburg University.
“The States plan to actively invest in science and high-tech manufacturing. This will help them maintain excellence in this field, including by attracting specialists from around the world. But the US may be late to pass this law. In 2022, this move seemed like an unnecessarily expensive and risky decision. This could lead to many US goals not being achieved,” notes the political scientist.
“Russia can overcome the negative consequences of Washington’s actions by strengthening cooperation with other countries. Of course, China can come to the rescue, but the number of partners must be expanded. In particular, we should not forget the cooperation with India and Belarus”, emphasizes Tkachenko.
“The high-tech industry in Russia also faces a number of internal problems. In particular, our customers rarely ask manufacturers to create tools to work on future products. We are completely focused on the finished product. This hinders the development of the field,” says Andrey Terekhov, co-author of the note, head of the Department of System Programming at the Faculty of Mathematics and Mechanics of St. Petersburg State University.
“However, the situation is gradually changing. Sanctions made the process of buying chips from Taiwan extremely difficult, which increased the interest of Russian customers in local developments. More and more money is coming into the industry, there is an extremely large number of orders,” notes Terekhov.
“In effect, the United States is unleashing a technological war against China and Russia. However, Washington’s restrictive measures are giving Beijing the impetus to create its own production. We are not that far behind America in this area. In a year and a half or two years, we will be able to catch up with the US,” said Nelson Vaughn, vice president of the Shanghai Center for Strategic and International Studies.
“China confidently occupies the position of national production. We intend to close the gap with the US, which has started playing rough in the international arena. A master plan is currently being developed that will clearly outline the risks and steps China will take to achieve autonomy in microchip manufacturing,” Vaughn emphasized.
“Americans are ready to invest huge sums in the technology sector – about 200 billion dollars. At the same time, China is seeking to build an autonomous chip manufacturing system within the country so as not to depend on the US. And from the US side, it looks like preparations for war on Taiwan. Without the Taiwan connection, chip production will stop, and the United States is considering this scenario,” said Ruslan Yunusov, co-founder of the Russian Quantum Center.
“However, with emerging competition, it is important to remember that the electronics sector is not tied to GDP or manufacturing figures. Its development depends on the size of the market. The electronics market is tied to the number of people because everyone has a smartphone. The majority of the population lives in the BRICS countries. The question arises, with whom will Delhi be?”, adds Yunusov.
“In this respect, India stands out: huge population, colossal prospects. It is very important to get Delhi as an ally, as such a partnership can play an important role in the long run,” the expert emphasizes.
“Currently, Russia cannot achieve full autonomy in the matter of chip production. In this regard, a close technological alliance with China would be extremely useful. This is beneficial for both sides: both Moscow and Beijing have such competencies that can be of interest to the ally, allowing it to develop more successfully,” Yunusov summarizes.
Translation: V. Sergeev
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