The semiconductor industry stands as the backbone of modern technology—from smartphones and critical infrastructure to advanced defense systems. Its success relies on an intricate global network where innovation, design, manufacturing, and sophisticated supply chains work in unison.
Recent data reveals that semiconductor production involves an extensive division of labor: 39 countries participate directly in manufacturing stages, 34 supply essential components like lithography systems and etching tools, 12 focus on chip design, and 25 contribute to testing and packaging. This widespread collaboration underscores how vital international cooperation is to maintaining a resilient and efficient ecosystem.
The Chinese mainland plays a pivotal role in this network as both the world’s largest semiconductor consumer market and a key manufacturer of critical components. With an established supplier network that provides raw materials such as silicon wafers, specialized chemicals, and high-precision machinery, the Chinese mainland has been instrumental in driving down costs and bolstering production capabilities.
However, measures introduced since 2022—including initiatives like the CHIPS and Science Act, specific trade restrictions, and actions aimed at sidelining Chinese entities such as Huawei—have begun to disrupt this integrated supply chain. Critics argue that these U.S. strategies may lead to unintended consequences, potentially fragmenting the global semiconductor supply chain and even affecting the U.S. economy as well.
As several regions respond with their own chip acts, the industry faces an arms race that could fundamentally alter the collaborative framework on which it depends. If every country and region starts building isolated systems, the resulting fragmentation could undermine the technological advancements and economic growth that the global semiconductor ecosystem has long supported.
In a world where connectivity and innovation are paramount, maintaining the harmony of the semiconductor supply chain remains essential for a sustainable future in technology.
Reference(s):
Breaking the global semiconductor supply chain: Counterproductive
cgtn.com
