International chip wars likely to get nasty
 

Governments are more concerned about the industry

Jimmy Goodrich, vice president of global policy with the Washington-based Semiconductor Industry Association is warning that spats for dominance over the chip industry are going to become nastier.

Goodrich said that the techno-nationalist trends gaining traction in multiple capitals around the world are a challenge to the semiconductor industry.

He said that once highly globalised and yet concentrated in the hands of a few countries, the industry has choke points that the US, under the presidency of Donald Trump, has sought to exploit in order to thwart China's plans to become a world leader in chip production.

Washington says Beijing can only achieve that goal through state subvention funding at the expense of US industry, while furthering Communist Party access to high-tech tools for surveillance and repression.

China rejects the allegations, accusing the US of hypocrisy and acting out of political motivation. For both sides, Taiwan, which is responsible for some 70 percent of chips manufactured to order, is the new front line.

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