Global semiconductor market tilts against China as chip wars escalate

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As the worldwide semiconductor landscape undergoes massive expansion and geopolitical shifts, Japan and India are poised to rise as major manufacturing hubs, boosting U.S. hopes to curb China's rising clout in a critical market for 21st-century industry.

SEMI President Ajit Manocha SEOUL, South Korea — As the worldwide semiconductor landscape undergoes massive expansion and geopolitical shifts, Japan and India are poised to rise as major manufacturing hubs, boosting U.S. hopes to curb China’s rising clout in a critical market for 21st-century industry.

“I used to watch ‘Knight Rider,’ though I thought it was sort of unreal,” Mr. Manocha said. “But it is real now: You can tell a car where to take you.” New technologies are giving high-end chips a central role in the global struggle for economic supremacy. “We used to have a killer app every three to four years,” Mr. Manocha said. “Now we have multiple killer apps.”

“Every country can invest. … It’s strategic for every country,” he said. “But it’s a competitive world.” With South Korea and Taiwan facing strategic challenges from North Korea and China, the U.S. government has sought to spread risk by diversifying fabrication infrastructure, luring investment from companies like Taiwan’s TSMC and Korea’s Samsung and SK hynix to build facilities in the United States..

Japan “has all the ingredients you need for the industry,” Mr. Manocha said. “It can easily step up.” Prime Minister Narendra Modi is intensely interested in the chip wars and Japan has promised support. U.S. chip giant Micron last month broke ground on a major fab and testing center in India – a move Mr. Manocha expects to be a “catalyst.”Despite post-Cold War supply chain interdependencies, political flare-ups are not new.

 

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