A major rivalry between the US and China is the "tech war," which is reshaping conflicts over global power and deciding the direction of the global order. Due to two major factors, the global impact of the semiconductor industry's deteriorating competition is expected. First, chips are now a necessary component of many facets of modern life and international relations, such as production, innovation, networking, commerce, communication, and collaboration. Second, given the interdependencies in technology and commerce, the two greatest economies in the world, as well as their friends and partners, are at the forefront of this rivalry.
An executive order addressing US investments in specific national security technology and goods in worry-inducing nations was signed by President Biden. This action highlights China's significance as a constant influence on Washington's bipartisan agreement and implies that President Biden would not be reluctant to capitalise on the resulting political benefits. This executive order also commemorates the anniversary of the 2022 Chips and Sciences Act, recognising that previous efforts to create a unified ecosystem in the semiconductor sector fell short.
US threat assessments are primarily influenced by worries that China may use unscrupulous measures to gain an edge in technological competition. According to a study by the United States Trade Representative (USTR), China's aggressive technology policies threaten millions of jobs in the US technology sector with their unfair business practices, such as forced knowledge transfer. The Chips and Sciences Act, which the Biden administration introduced in 2022 and committed $53 billion to restructure semiconductor production, research and development, and the accompanying American workforce, immediately addressed China's capacity to manipulate tech access and control.
The Biden administration has made tremendous progress in the United States within a year of passing CHIPS, with several US corporations announcing over $166 billion in commitments related to semiconductor and electronics manufacturing. The engagement of 50 community colleges spread across 19 states seems to be a promising move for employment growth in the semiconductor industry. Business pledges for semiconductor and electronics projects in the US have surpassed $231 billion since the Biden administration began office.
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