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The Battle for Chips

Photo by (Unsplash)

Tiffany WangTiffany Wang is an IPilogue Writer, IP Innovation Clinic Fellow, and a 2L JD Candidate at Osgoode Hall Law School.

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Chips are the hotspot in the current . By stymieing Huawei’s reach of international customers’ communications and leading the 5G race, the Biden administration has fronted a in chipmaking and research. Beijing, swimming against the current, has committed more than to high-tech developments, particularly in the semiconductor industry.

Samsung leads its competitors in the during the pandemic has led the Chinese government to invest in domestic semiconductor supply chains. and carved a local talent pool. Reducing dependency on outside markets is in part due to domestic demand since . Internal supply chain security will curb shortage risks for the country.

Production will not be a quagmire for Beijing. Their reservoir of . In fact, China’s share of the global semiconductor production capacity may rise from . .

President Xi positions China for . The restricted Huawei and other players in the Chinese market’s access to American technology. US , have pushed China to bite back in its For Beijing, technology and innovation self-sufficiency have inevitably turned into a matter of survival. Chinese firms .

As the net importer of semiconductors, . This figure continues to rise. In China’s race with the US, no one is safe. These two giants in the global economy threaten their mutual destruction. For one, the Chinese semiconductor industry considers leveraging rare earth minerals in this geopolitical war.

Who will win the semiconductor race—the eagle or the dragon? One thing remains certain: no one is backing down.