computer chips
27.10.21 - US, United States -
(Image by Photo by Jeremy Bezanger on )
America’s latest move to try to contain Beijing is to weaponise an entire industry. By leveraging its patents and licences for semiconductor manufacture, it is attempting to deny China access to crucial technology.
By Tom Fowdy
Taiwan Semiconductor Manufacturing Corp (TSMC) is the world’s leading chip manufacturer and the shining star of the island’s economy. But it has a problem – it’s located right in the middle of one of the world’s geopolitical flashpoints, with the future of Taiwan itself at the heart of that.
Geography and access to markets matter, of course, and one of its main customers is the very nation sitting on the other side of the strait, China. But its biggest provider of patents in the supply-chain process is the United States, which now appears to be determined to forcibly weaponise the entire industry for its own political gain against Beijing.
The Biden administration is demanding that TSMC
sensitive data on all of its customers to the US government, for the unstated yet obvious reason that it wants to see who in China the firm is selling to.
It’s a blatant coercive violation of national sovereignty and corporate privacy, but Taiwan has absolutely no leverage over the US, because politically it has aligned itself completely with Washington. America has effectively learned it can leverage the entire semiconductor supply chain to do what it wants, with an eye to global domination of it.
And so it was no surprise when it was widely reported in late October that TSMC is prepared to capitulate and agree to the move, which speaks volumes about the environment we are now in.
The semiconductor has emerged as one of the most strategic commodities in the world, or least that’s how Washington sees it. These tiny components are required to power high-end technology and military devices – a crucial factor in the global balance of power.
The US does not currently dominate the production of semiconductors, but is abundant in knowledge and patents, linking together a global supply chain in which the most renowned producers are South Korea, Japan and Taiwan.
In a way, the US’ role constitutes the bottom layer of a pyramid, which props up the increasingly smaller and sophisticated layers building upwards. It’s an industry that ultimately derived from American technological breakthroughs; licenses were then issued to friendly countries to build their own industries, and they have subsequently built products which are exported globally and used in devices such as laptops, tablets, smartphones and more.