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China s Import of Chipmaking Equipment Hits Record High Amid Looming Taiwan Conflict
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Water With Your Chips? Semiconductors and Water Scarcity in China
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Manish Tewari | War of the chips
Published : May 23, 2021, 12:40 am IST
Updated : May 23, 2021, 12:40 am IST
The semiconductor industry requires two key resources sand and freshwater. They are the basic raw materials
The Shaksgam valley alone is home to 242 glaciers that can serve as the grand reservoir of fresh water for Chinese chip manufacturing. It, therefore, becomes imperative to view the Sino-Indian standoff through this technological lens also. (Photo: PTI)
One of the less analyzed reasons for the Chinese aggression in Eastern Ladakh since the April of 2020 is access to fresh water sources. Though there has been some discussion and dissection of this train of thinking in the rarefied echelons of strategic policy deliberations the issue has never really travelled into wider setting of public dialogues. It has something to do with semiconductors or the ubiquitous chip that powers our daily existence.
Competition between the United States and China in semiconductor innovation and production dictates the future of technological supremacy.
Integrated chips, or integrated circuits, are the brains of electronic devices, and American companies sell nearly half of the global supply. China is now racing to catch up in the production of these chips. Thus far, the primary production countries are the United States, Japan, South Korea, Taiwan, and increasingly, China. Beijing set up a $29 billion semiconductor fund in October 2019, and its most prominent company is Semiconductor Manufacturing International Corporation (SMIC). Since 2015, China has invested about $100 billion in the semiconductor industry. However, the U.S. is also dependent on chips from Taiwan and South Korea; therefore, neither Beijing nor Washington are self-reliant.
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China’s chip dreams face reality check with Biden’s united front approach and realisation that money can’t buy success Celia Chen/ Yujie Xue/ Sidney Leng No single country or region is capable of delivering everything required in the chip supply chain. Photo: Handout
The US-China confrontation over semiconductors is expected to continue under a Biden presidency but is likely to take a different approach, with the new administration enlisting allies in its attempts to blunt Beijing s goal of self-reliance in chips, according to analysts.
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