China bans American foreign microchips and software
microchips, it appears that the law of unintended consequences is working
against America. Over the past four years, China has significantly
increased its computer chip production. This growth has led to Huawei
becoming the second-largest mobile phone brand in China, marking a
remarkable turnaround. The rapid advancement of China in producing high-end
microchips, such as the level 7nm chip powering the Huawei Mate 60 and
iPhone XS, has surprised the US intelligence network. This is in contrast
to the more advanced 5nm chip in the iPhone 13 and the 3nm chip in the
iPhone 15 produced by Western companies.
China has taken a further step by implementing measures to replace US-based
operating systems (Microsoft), database products, and microprocessors
(Intel and AMD) with locally developed Chinese alternatives in government
offices. This will have a spillover effect across the Chinese business
sector. The Chinese government has cited “safety and reliability” as the
primary reasons for this shift, mirroring the security concerns raised by
the US regarding Chinese-based systems.
In 2023, China accounted for 27% of Intel’s $54 billion and 15% of AMD’s
$23 billion revenue. The implications of these actions are significant, and
the future actions of the US under the current Biden administration or any
future administration will be closely watched.
The broader question raised by these developments is who benefits when
superpowers engage in such conflicts. While the competition may lead to
advancements in technology, the aggressive pursuit of dominance in
microprocessor technology raises concerns about the impact on global
innovation and collaboration.
Chris Miller, author of Chip War, aptly summarizes the situation by
stating, “If you import most of your chips, you’re not a manufacturing
superpower; you’re just assembling high-value components produced
elsewhere.”
The US-China tech war has escalated into a multifaceted conflict
encompassing technology, economic dominance, national security, and global
influence. This battle for technological supremacy between the two
superpowers has reshaped global alliances, trade relationships, and the
trajectory of technological innovation. Taiwan and Malaysia’s pivotal role
in semiconductor production has positioned the Asian countries as key
players in this tech war, underscoring the intricate interplay between
geopolitics and technology.
The unintended consequences of Donald Trump’s ban on Chinese companies
using American-made microchips have catalyzed China’s rapid advancement in
computer chip production. This growth has propelled Huawei to become a
major player in the mobile phone market, showcasing China’s technological
prowess. China’s strategic measures to replace US-based technology with
domestic alternatives in critical sectors like government offices reflect a
broader trend of self-reliance and security concerns driving national
policies.
The implications of these actions, with China accounting for a significant
portion of Intel and AMD’s sales, highlight the profound impact of the
US-China tech war on global tech markets. The competition between the US
and China in microprocessor technology raises questions about the balance
between technological advancement, market dynamics, and national interests.
The conflict not only shapes the tech industry but also influences broader
international relations and the future trajectory of global technological
development.
As the US and China navigate this complex tech war, the broader question of
who benefits from such conflicts remains pertinent, with implications for
global innovation, collaboration, and the evolving geopolitical landscape.
Interesting times ahead. I would love to see what retaliatory or olive
branch the US will use under the current Biden administration or the
incoming one. And where does Africa, and the Global Majority sit in the
global scale of things?
Great heading here:
China blocks use of Intel and AMD chips in government computers, FT reports
www.reuters.com/world/china/china-blocks-use-intel-amd-chips-government-computers-ft-reports-2024-03-24/
US-China tech war: Is Huawei’s new chip a threat?
amp.dw.com/en/us-china-tech-war-is-huaweis-new-chip-a-threat/a-66915954
Rough politics:
How Huawei surprised the US with a cutting-edge chip made in China
www.ft.com/content/327414d2-fe13-438e-9767-333cdb94c7e1
Sources Retrieved on 28 March 2024.
Best Regards
______________________
Mwendwa Kivuva
www.linkedin.com/in/mwendwa-kivuva
