The new cold war has taken a dramatic turn in the past few years. Two world superpowers are battling each other for a very tiny resource, the semiconductors. The US has been trying to limit China’s access to the huge chip industry, an industry worth $500 billion. But so far, the US is winning the US-China Chip warfare.
Semiconductors are as important as oil used to be in the recent past. Chips are more powerful as they are used in more expensive gadgets like supercomputers, cars, mobile, microwaves and most importantly, military equipment. China has been spending heavily on the chip manufacturing industry for the past 2 decades.
The US has repeatedly tried to restrict China’s access to semiconductor manufacturing technology. Last year, Biden’s administration announced export controls that made it impossible to sell chip making equipment and the softwares required for manufacturing chips to China. Previous Trump administration also banned Huawei from bidding on US government contracts.