Smartphones. Automobiles. Toasters. Fighter jets. Though vastly various on the outdoors, all 4 objects share a thing identical on the within: semiconductors.
“You can find no tech sector with out semiconductors,” explained Stacy Rasgon, senior semiconductor analyst at Bernstein Study.
Semiconductors represent a $574 trillion sector globally and are on tempo to cross the trillion-dollar mark by the finish of the 10 years. The industry has been caught in the crosshairs involving the U.S. and China, two of the world’s greatest economies.
The U.S., which sales opportunities the environment in world semiconductor market share, a short while ago issued sweeping limits on the sale of state-of-the-art chips and chipmaking products to China, in an attempt to limit Beijing’s obtain to vital systems. The Biden administration has said the export controls are aimed in section at preventing the use of American-built chips in China’s military services. China, in the meantime, has accused the U.S. of abusing export restrictions to impede the country’s technological advances.
“We can’t make it possible for China to have our most subtle semiconductor chips for use in the Chinese army,” U.S. Secretary of Commerce Gina Raimondo stated in an interview with CNBC on Oct. 30, 2023. “That’s wherever we’ve drawn the reduce line.”
View the video clip previously mentioned to come across out additional about how the semiconductor business grew to become the centerpiece of a technological tug-of-war concerning the U.S. and China, and what the opportunity implications are for firms caught in the center of it all.