Analysis

US-Chinese trade war leaves semiconductor industry in limbo

Paul van Gerven
Reading time: 3 minutes

As the US government implements one export restriction after another, the semiconductor industry is left wondering where it will end.

“The health and vitality of the US semiconductor industry are essential to America’s future competitiveness. We cannot allow it to be jeopardized by unfair trading practices,” said President Ronald Reagan when announcing import tariffs for Japanese semiconductors. The move was about more than unfair trade, though, as the New York Times explained: “The tiny slivers of silicon that are the essence of computers and other electronic products, are considered vital to national security.”

That was 1987, and history is repeating itself. Deeply concerned about China’s rapid technological advance, as well as its own incomplete semiconductor manufacturing base, the US has engaged in another semiconductor trade war. But this time it doesn’t look like it will peter out in a few years.

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