By
Sana Khan
Africa-Press – Lesotho. The great power struggle of the twenty-first century is no longer waged in battlefields or oil markets. It is now fought in the microscopic circuits of semiconductors. Its value was once dismissed and they were seen only as the invisible backbone of consumer electronics and chips but they have now become the front line of geopolitical rift.What began as a trade war of tariffs and accusations has evolved into something more dangerous: a full-fledged technology war, built on a deceptively small yet strategically profound object, the semiconductor. As they say, “whoever controls the chips, controls the world.” And by controlling the world we mean, having a command over the future of AI, quantum computing, global supply chain and the advanced weaponry. From the remote of our TV to satellites, these silicon chips are everywhere.
But here is the catch, Washington sees Beijing’s technological development as an existential threat to America’s standing, while Beijing views U.S. tariffs as an attempt to minimize its rise prematurely. The result is a rising contest where every export embargo, subsidy package, or market restrictions resonates around the globe, entangling allies and rivals alike in the semi conductor competition. This is not a simple commercial dispute, it’s a complicated battle which will signal out who will rule tomorrow’s world order. America with it’s technological advancement or China’s dream of self reliance. In this battle, the stakes are higher than ever , nothing less than global power itself.
This rivalry began with tariffs in 2018 when Washington accused Beijing for intellectual property threat and using unfair means of trade. This accusation launched a trade war that shook the core of the global markets. This eventually transformed into something more strategic, the semi-conductors. China’s notion of a ‘century of humiliation’ still shapes its worldview. Beijing sees foreign powers as once again trying to keep it technologically inferior, which is why chip-making has become both a political and end goal.
Taiwan adds another layer to this tension because it produces the lion’s share of cutting-edge semiconductors, and is home to TMSC, making it both a strategic asset and a flashpoint. The U.S claimed to be standing behind Taiwan and preserving its technological dominance but China’s objective is much broader i-e: reunification and breaking America’s stranglehold over it. The silicon war is therefore tied to one of the world’s most volatile geopolitical flashpoints. Chips are not mere components; they are weapons of power. The U.S. and China are no longer in competition, they are at war. No bombs, no missiles but supply chains and microcircuits. What makes semiconductors unique is that no single country can control the entire process. For instance, the United States leads design and software, Taiwan and South Korea commands high-tech manufacturing, critical lithography equipment by the Netherlands, and other specialized materials are supplied by Japan.
China still lags in advanced segments. U.S. barriers or disruptions in Taiwan could freeze entire industries, making chips one of the world’s greatest geopolitical chokepoints. But this is beyond economics. Chips power drones, hyper sonic missiles etc and backs modern warfare. Washington’s strategic motive is to cut China’s access to high end technology because this will secure America’s supremacy in the international system.
The reality is grim: the next world war may not be fought with nukes or tanks but most likely with semiconductors. Whoever wins the chip war will not only dominate technology but will also define the new world order rules. Therefore, silicon is seen as the new oil, new steel and perhaps the new gunpowder of the century.
America views the chip war as the gateway to attain power in the 21st century, that’s why the semiconductors has moved from the domain of trade to that of strategy. They are now treated as weapons of influence instead of consumer goods. U.S is determined to retain it’s position as the sole super power, and in this digital age, semiconductors are its deadliest weapon. It has a binary strategy: choke Beijing’s technological advancement and build a fortress of allies surrounding its semiconductor dominance. This techno containment includes banning companies like Huawei and SMIC, blacklisting Chinese tech firms and restrictions on Chinese advanced lithography equipment.
CHIPS and Science Act in 2022, with exceeding more than $50 billion in subsidies, is America’s affirmation that silicon is not a matter of economics but national security. The most revealing signs of America’s determination lies in how it has corralled allies like Japan, the Netherlands, South Korea and Taiwan into this silicon coalition, using them to enforce Washington’s tariffs.
TSMC’s decision to build new fabs in Arizona goes beyond economics, it is a geopolitical move to secure U.S. influence over advanced chips.
Realists would argue that this is a coalition building for survival and not cooperation. The battle lines of a new cold war are being drawn by the U.S, that’ll tell, who’s going to rule and who, follow. Weaponizing semi-conductors is far ahead of free trade or economic competition, it is about preserving hegemony in a system where technology is the sharpest sword. Washington may be seeking to keep China away from achieving this power parity but to China, every economic ban and sanction is seen as the repetition of history, the humiliation. That’s why semi-conductors are seen as the core of China’s national survival hence the technological revolution like “Made in China 2025” and massive state subsidies. China is spending billions on silicon I-e: research, chip design and fabrication. Engineers and researchers are recruited from all over the world to attain this goal, which is quite simple: To attain chip self sufficiency and end it’s dependence on the West.
Nevertheless, China still faces technological dependency traps, as the realists call it. It may design chips but is still dependent on dutch lithography equipment, foundries from Taiwan and American designed software. China is climbing a technological mountain but America keeps removing the rungs of the ladder. For Beijing, breaking Washington’s technological choke-hold is the very definition of national revival. For Xi, semi-conductors is not just some silicon chips that will ensure economic boost but a tool to sovereignty. And since, technology has become a battle field for both super powers, China losing this game would mean another “century of humiliation” and America letting China attain parity would be seen as them giving up on global leadership. Both of these scenarios does not seem very ideal in the international system. This is existential rivalry not competition.
This is not China vs U.S anymore, the entire world order is being reshaped. There are two rival technological universes now. Call is a digital iron curtain, where one side follows America by using American chips, technology and supply chains and on the other side, countries are aligning with China’s growing ecosystem. U.S allies are stuck in the middle. Taiwan, makes 90% of the world’s most advanced chips, home to TSMC, makes it both valuable and a potential trigger for conflict. Furthermore, South Korea is standing at cross roads between its main security ally, U.S and it’s biggest customer market, China.
The Dutch industry too, is a tool of U.S strategy because the Netherlands, forced by U.S has blocked it’s company ASML selling advanced chip machines to China. Since European Union did not want to pick sides, they simply started building their own chip industries by pouring billions into it, in order to make sure they don’t lag behind in a world where technology is the new nuke. However, at the same time, the world economy is going to suffer drastically, because the chip supply chain are splitting which means higher costs, unnecessary duplication and minimized innovation. Under such circumstances, the developing countries has no option but to align with one of the two blocs. An enforced alignment because they did not choose this war. Meanwhile global economy will remain destabilized.
Realists would say this is just a natural and expected outcome of great powers rivalry, but the stakes are even more grave. If history remembers 20th century for oil wars, it’s definitely going to remember the 21st century for silicon wars. And the darker side of this chip rivalry is, oils were found in multiple regions but chips are concentrated in limited choke-points, which makes the word economy not only shaky but a hostage to spark conflicts in the foreseeable future. Therefore, the semi-conductor fight is not limited to economics, it is in fact a geopolitical power keg.
Conclusion:
The semi-conductor rivalry is not a conventional confrontation of armies, but a much more complicated battle wired into the circuits of global economy. Each restriction imposed by U.S hardens China’s determination, while every push to attain autonomy by China stirs a fear of collapsing in America, a continuous cycle of escalation that has no end. This rivalry cannot be settled by diplomacy or compromise, as past trade disputes were, because in today’s world technology is the very essence of power. Yet in pursuing the struggle for dominance, both Beijing and Washington will cripple the very system that sustains them.
History will remember the 21st century’s silicon cold war not for innovation, but for dismantling the world order itself.
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