Semiconductors, CHIPS and Geopolitics

The United States has gambled big in its latest across-the-board sanctions on Chinese companies in the semiconductor industry, believing it can kneecap China and retain its global dominance.

From the slogans of globalization and “free trade” of the neoliberal 1990s, Washington has reverted to good old technology denial regimes that the U.S. and its allies followed during the Cold War. While it might work in the short run in slowing down the Chinese advances, the cost to the U.S. semiconductor industry of losing China—its biggest market—will have significant consequences in the long run.

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