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Circuits Of War: On Biden’s Technological Offensive Against China

A world war was declared on 7 October. No news station reported on it, even though we will all have to suffer its effects. That day, the Biden administration launched a technological offensive against China, placing stringent limits and extensive controls on the export not only of integrated circuits, but also their designs, the machines used to ‘write’ them on silicon and the tools these machines produce. Henceforth, if a Chinese factory requires any of these components to produce goods – like Apple’s mobile phones, or GM’s cars – other firms must request a special licence to export them. Why has the US implemented these sanctions? And why are they so severe? Because, as Chris Miller writes in his recent book Chip War: The Fight for the World’s Most Critical Technology (2022), ‘the semiconductor industry produces more transistors every day than there are cells in the human body’.

Big Chip In US-China Crisis

One aspect of U.S. House Speaker Nancy Pelosi’s trip to Taiwan that has been largely overlooked is her meeting with Mark Lui, chairman of the Taiwan Semiconductor Manufacturing Corporation (TSMC). Pelosi’s trip coincided with U.S. efforts to convince TSMC – the world’s largest chip manufacturer, on which the U.S. is heavily dependent – to establish a manufacturing base in the US and to stop making advanced chips for Chinese companies. U.S. support for Taiwan has historically been based on Washington’s opposition to communist rule in Beijing, and Taiwan’s resistance to absorption by China. But in recent years, Taiwan’s autonomy has become a vital geopolitical interest for the U.S, because of the island’s dominance of the semiconductor manufacturing market.
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