As Chris Miller observed, semiconductors are to the 21st century what oil and steel were to the 20th century.
Last week, the Department of Commerce’s Bureau of Industry and Security announced new export controls that are designed to restrict China’s ability to obtain, design, and fabricate advanced semiconductors. BIS observed that"China has poured resources into developing supercomputing capabilities and seeks to become a world leader in artificial intelligence by 2030. It is using these capabilities to monitor, track, and surveil their own citizens, and fuel its military modernization.
The Achilles' heel of U.S. policy toward China is Taiwan’s position as semiconductor fabrication king. Taiwan Semiconductor, TSMC, has a 53% share of the global semiconductor fabrication market. U.S. companies design the semiconductors, and TSMC fabricates the chips. Other Taiwan-based manufacturers claim a further 10% of the market.
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