Movement within the semiconductor industry suggests that the US is attempting to overtake China for leadership. So, how will this affect the development of technology?
Below, we’ll look at how the semiconductor industry is set to change over the next few years and how the US is attempting to secure its leadership.
1] China’s tech companies seek to dominate sector
Although America has dominated the semiconductor sector since it began, China has become an increasing threat to take over as the industry leader. It was the blockade in 2018, preventing US businesses from exporting microchips to ZTE, which spurred China to look into stepping up the development of its own semiconductor industry.
The country realised just how dependent it was upon the US for its technology sector and that forced local businesses to start looking into developing their own products.
Although China still has a long way to go before it can overtake the US within the sector, it is making bold steps towards leadership.
2] US semiconductor industry requesting billions in research
In order to retain its leadership status, the semiconductor industry is calling for billions of pounds worth of investment to be spent on research each year. It claims additional talent and improved microchips are required if the US is to keep up.
The SIA (Semiconductor Industry Association), released a blueprint report at the beginning of April, entitled “Winning the Future”. Within the report, it estimates the US needs to spend between $1.5 billion and $5 billion a year in order for the industry to progress.
3] How is the semiconductor war likely to affect the industry?
You only have to look at the performance of leading US semiconductor suppliers such as RS, to see that the country still dominates the sector. However, the progression of China is making within the industry is threatening America’s long-standing leadership. So, what does this mean for the industry?
The competition between the US and China is likely going to see major developments occurring within the sector. As both countries push to take over, they’re going to be focusing all of their efforts on progressing the technology.
China is already developing microchips which are too advanced for most domestic foundries to incorporate. So, as the industry catches up, we’re going to see much more powerful and impressive chips being launched onto the market.
Overall, America doesn’t have to worry just yet about China overtaking the sector. However, unless additional funds are provided for research into the development of new products, it won’t be too long before the country is overtaken.
The US semiconductor industry is now calling on Washington to invest additional funds into semiconductor development.