How the escalating U.S.-China tech battle may harm American firms
Smartphones. Vehicles. Toasters. Fighter jets. Whereas vastly totally different on the skin, all 4 objects share one thing related on the within: semiconductors.
“There isn’t any tech business with out semiconductors,” mentioned Stacy Rasgon, senior semiconductor analyst at Bernstein Analysis.
Semiconductors symbolize a $574 trillion industry globally and are on tempo to cross the trillion-dollar mark by the end of the decade. The business 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 world semiconductor market share, not too long ago issued sweeping restrictions on the sale of superior chips and chipmaking gear to China, in an try to limit Beijing’s entry to important applied sciences. The Biden administration has mentioned the export controls are aimed partly 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’t permit China to have our most subtle semiconductor chips to be used within the Chinese language army,” U.S. Secretary of Commerce Gina Raimondo mentioned in an interview with CNBC on Oct. 30, 2023. “That is the place we have drawn the lower line.”
Watch the video above to seek out out extra about how the semiconductor business grew to become the centerpiece of a technological tug-of-war between the U.S. and China, and what the potential implications are for firms caught in the midst of all of it.
