Bi-Weekly Geopolitical Report – Chip War: Book Review (February 21, 2023)
Thomas Wash | PDF
It was simple in the beginning. American firms developed all the designs for semiconductor chips, and Asian manufacturers turned them into reality. It was a match made in capitalist heaven. This all changed after the pandemic exposed supply chain vulnerabilities in the business model, and the situation only worsened after Russia’s invasion of Ukraine. This has led to a rethink regarding the U.S.’s reliance on Taiwan-produced semiconductors. Thus, an industry model which previously had been based solely on working with the lowest-cost producer must now consider supply-chain security.
In his book Chip War: The Fight for the World’s Most Critical Technology, Chris Miller discusses how semiconductors have become essential for economic and military ambitions. The author not only details how semiconductors originated but also how they became a linchpin in the global economy. In this report, we summarize the findings in Miller’s book, including how chip manufacturers paved the way for globalization and a subsequent clash between global powers. Additionally, we provide our thoughts on the book and conclude with potential market ramifications.