Geopolitical competition surrounding chip, semiconductor output intensifies


(MENAFN) The geopolitical competition surrounding chip and Semiconductor production is intensifying, particularly between the United States and China, with escalating tensions focusing on Taiwan's crucial role in the industry. Taiwan, known as a global leader in semiconductor manufacturing, produces approximately 60 percent of the world’s advanced sub-7-nanometer chips. These chips are integral to various technologies, including artificial intelligence (AI), 5G, and military applications, positioning Taiwan at the center of a significant trade and technology rivalry between the US and China.

Taiwan Semiconductor Manufacturing Company (TSMC) stands out as the leading global microchip producer, playing a critical role in the semiconductor landscape. Alongside TSMC, other Taiwanese companies such as United Microelectronics (UMC) and MediaTek contribute significantly to high-capacity chip production. This dominance in the chip market places Taiwan in a strategic position as the US and China navigate their competitive interests, particularly concerning advanced technology and national security.

In addition to Taiwanese manufacturers, the global chipmaking landscape includes key players like ASML from the Netherlands and South Korea's Samsung. US technology giants such as Intel, Nvidia, Micron, and Texas Instruments are also major contributors to the semiconductor industry, competing for market share and technological advancements. The US government is actively working to bolster its position in the global chip competition, investing billions through initiatives like the CHIPS and Science Act to support TSMC and other domestic companies. Notably, TSMC's Arizona facility has ramped up production, showing a 4-point increase compared to similar plants in Taiwan, highlighting the strategic shift toward domestic chip production.

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