Opinion | US-China tech war: semiconductors at heart of competition driving world towards new cold war

With technological supremacy of paramount importance in both Washington and Beijing, the global race for semiconductors is certain to intensify

The current tensions between the US and China indicate that a second cold war has begun, with semiconductors being at the heart of it

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Visitors watch wafers shown on screens at the Taiwan Semiconductor Manufacturing Company Renovation Museum at the Hsinchu Science Park in Hsinchu, Taiwan, on July 5. The escalating tech war between the United States and China is likely to intensify as semiconductors become an increasingly essential part of the global economy. Photo: AFP

Published: 1:00am, 13 Aug 2023

The US-China semiconductor competition has entered new territory, with key US allies and partners now firmly siding with Washington and forcing Beijing to change course to achieve its strategic objectives.

Last month, Japan imposed export controls on 23 items required for manufacturing advanced semiconductors in what was another major blow to China’s technological ambitions. These items now require governmental approval before being exported, meaning Japanese exporters are likely to prefer to find alternative buyers.

The export controls included restrictions on lithography equipment, which is crucial for producing cutting-edge microchips.

Although Japan did not mention China by name in its announcement, the move appeared to be targeted at Beijing. Mao Ning, a spokeswoman for China’s Foreign Ministry, said during her July 24 press conference that “despite China’s serious concerns, Japan went ahead with its export restrictions that explicitly target China. China is deeply dissatisfied and finds Japan’s action regrettable.”

The move by Japan was just the latest in a series of export control measures imposed by the United States and its allies in the hope of curbing China’s technological progress, particularly in the field of artificial intelligence. Semiconductors are crucial elements in civil and military technology. Advanced semiconductors, which have been a primary focus of restrictions by the US and its allies, are essential building blocks for AI and other key emerging technologies.

As AI and computer software continue to advance and become more complex, the hardware will have to keep up with it. If China’s semiconductor supply is halted, this would certainly disrupt its AI progress.

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