Smartphones. Automobiles. Toasters. Fighter jets. Whereas vastly completely different on the skin, all 4 gadgets share one thing related on the within: semiconductors.
“There is no tech trade with out semiconductors,” stated Stacy Rasgon, senior semiconductor analyst at Bernstein Analysis.
Semiconductors characterize a $574 billion trade globally and are on tempo to cross the trillion-dollar mark by the tip of the last decade. The trade has been caught within the crosshairs between the U.S. and China, two of the world’s largest economies.
The U.S., which leads the world in international semiconductor market share, lately issued sweeping restrictions on the sale of superior chips and chipmaking gear to China, in an try to limit Beijing’s entry to crucial applied sciences. The Biden administration has stated the export controls are aimed partially at stopping the usage of American-made chips in China’s army. China, in the meantime, has accused the U.S. of abusing export restrictions to impede the nation’s technological advances.
“We can not permit China to have our most subtle semiconductor chips to be used within the Chinese language army,” U.S. Secretary of Commerce Gina Raimondo stated in an interview with CNBC on Oct. 30, 2023. “That is the place we have drawn the reduce line.”
Watch the video above to seek out out extra about how the semiconductor trade turned the centerpiece of a technological tug-of-war between the U.S. and China, and what the potential implications are for corporations caught in the course of all of it.
Correction: A earlier model of this story misstated the worth of the semiconductor trade. In line with the Semiconductor Trade Affiliation, international semiconductor gross sales reached $574 billion in 2022.