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China’s chip industry is gaining momentum – it could change the global economic and security landscape

For decades, chip manufacturers have been seeking to create more compact products. Smaller transistors result in lower energy consumption and faster processing speeds, vastly improving microchip performance. Moore’s Law – the expectation that the number of transistors on a microchip doubles every two years – is valid in chips designed in the Netherlands and the US and manufactured in Korea and Taiwan. That’s why Chinese technology has lagged years behind. While the world has reached the limit of 3-nanometer chips, Huawei’s domestic chip is at 7 nanometers. Maintaining this distance has been important for economic and security reasons. Semiconductors are the backbone of the modern economy. They are important for telecommunications, defense and artificial intelligence. The US push for “Made in America” semiconductors is tied to this systemic importance. Chip shortages have wreaked havoc on global manufacturing as they power many of the products that define contemporary life. Today’s military power is also directly dependent on chips. In fact, according to the Center for Strategic and International Studies, “All major U.S. defense systems and platforms depend on semiconductors.” The prospect of relying on chips made in China – and the impact it could have on supply – is a concern for Washington and its This is unacceptable to colleagues.

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