From dependence to decoupling: China’s semiconductor self-sufficiency amid geopolitical pressures

This book chapter was published in Peter C.Y. Chow (ed.), Technology Rivalry Between the USA and China, Palgrave Studies in Global Security, Palgrave Macmillan, pp. 93–130. https://doi.org/10.1007/978-3-031-76169-0_4.

Abstract

At the confluence of geopolitics and technological advancement, the semiconductor industry stands as a pivotal battleground in the ongoing technological rivalry between the United States and China. This chapter delves into the strategic policy shifts led by the United States, aimed at containing China’s technological rise in the semiconductor sector. The intense rivalry between the two nations significantly impacts the complex, interdependent global value chain (GVC) for semiconductors, an epitome of economic interdependence and efficiency, now exposed to vulnerabilities amidst techno-geopolitical uncertainty. This uncertainty, born from the interplay between rapid technological innovation and strategic geopolitical maneuvers, introduces a degree of unpredictability to global collaboration in technology. The chapter also investigates China’s strategic counteractions at both the national and corporate levels to secure technological independence against such backdrop, shedding light on the geopolitical dynamics in an era marked by geopolitics-driven fragmentation in technology. These measures and countermeasures, indicative of a broader strategic effort, have wide implications, extending beyond a simple competition for technological superiority, suggesting a profound shift in global power dynamics. It underscores the need for other countries in the semiconductor GVC for strategic adjustments in foreign policy and national security to adeptly navigate the challenges and opportunities presented facing techno-geopolitical uncertainty.

share_windows Read the book chapter online here. (Access may require purchase or subscription).