Smartphones. Cars. Toasters. Fighter jets. While vastly completely different on the outdoors, all 4 objects share one thing comparable on the inside: semiconductors.
“There’s no tech business with out semiconductors,” mentioned Stacy Rasgon, senior semiconductor analyst at Bernstein Research.
Semiconductors signify a $574 trillion industry globally and are on tempo to cross the trillion-dollar mark by the end of the decade. The business has been caught in the crosshairs between the U.S. and China, two of the world’s largest economies.
The U.S., which leads the world in world semiconductor market share, just lately issued sweeping restrictions on the sale of superior chips and chipmaking tools to China, in an try to limit Beijing’s entry to crucial applied sciences. The Biden administration has mentioned the export controls are aimed partly at stopping the use of American-made chips in China’s army. China, in the meantime, has accused the U.S. of abusing export restrictions to impede the nation’s technological advances.
“We can not permit China to have our most subtle semiconductor chips to be used in the Chinese army,” U.S. Secretary of Commerce Gina Raimondo mentioned in an interview with CNBC on Oct. 30, 2023. “That’s the place we have drawn the lower line.”
Watch the video above to seek out out extra about how the semiconductor business turned the centerpiece of a technological tug-of-war between the U.S. and China, and what the potential implications are for companies caught in the center of all of it.