Japan, South Korea, Taiwan and Europe require compliance with restrictions on Chinese exports of semiconductor technology. Through the “chip alliance,” Biden aims to create a supply chain that does not include Beijing. Example of Huawei’s 5G ban.
Washington (AsiaNews) – The United States wants an alliance between “high-tech democracies” to limit the development of China’s microchip industry: an attempt to prevent the development of China’s military program, and a new chapter in the “tech war” between the two powers.
Washington has demanded that allies such as Japan, South Korea, Taiwan and Europe abide by its restrictions on exports of advanced semiconductor technology to China. On October 7, the U.S. government announced a blanket ban on the sale of microchip production tools and design software to Chinese entities. It also limits the ability of U.S. citizens to work for or do business with Chinese companies.
According to Nikkei Asia, the United States controls 12 percent of the world‘s semiconductor market, which is used in all electronic systems. Taiwan and South Korea each hold 20%; Japan has 15%.
U.S. tech companies, such as those in Japan, South Korea and Taiwan, have reservations about Washington’s move: In times of global crisis, they don’t want to lose the wealthy Chinese market, especially in terms of supply of chip-making machinery.
Last spring, the United States proposed a “chip alliance” with Japan, South Korea and Taiwan. The intent of the Biden administration is to create an autonomous supply chain in the microchip space with the participation of allies and friendly countries, with the exception of China.
The initiative is still to be determined, but Washington wants participants to contribute to efforts to “isolate” China in the microchip space. However, observers note that the latest ban has had little impact on China’s military development: the restrictions cover the market for the most complex chips, while Beijing’s weapons systems still use less advanced semiconductors.
The Chinese leadership certainly cannot ignore the challenge posed by Washington. Huawei’s financial collapse after the U.S. imposed a ban on its 5G products and other countries followed suit in a warning to Beijing.
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