In the intricate intersection of technology and global politics, the semiconductor industry has emerged as a battleground, giving rise to what can be aptly termed as the Silicon Struggles.
This multifaceted landscape encompasses the industry challenges and geopolitical complexities that define the contemporary semiconductor arena. The global leadership in key aspects of the semiconductor ecosystem is currently held by the United States and a select group of partners and allies such as Germany, Japan, Netherlands, South Korea, and Taiwan. As nations vie for dominance in semiconductor research, development, design, and manufacturing, a geopolitical maze unfolds, presenting a myriad of obstacles and opportunities.
The US faces increasing challenges, finding itself in the pendulum shift, and its once clear advantages are gradually diminishing. The semiconductor shortage[1] has become a focal point for understanding the intricate interplay of technological complexities and far-reaching economic repercussions that resonate across diverse industries worldwide, and by adding the geopolitical dimensions of this trend, security issues also come to the front.
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The impact of the semiconductor shortage on the world economy is profound, evident in examples such as the estimated USD 240 billion reduction in US GDP in 2021.[2] Currently, the US faces increasing challenges finding itself in the pendulum shift, and its once clear advantages are gradually diminishing. This scarcity has rippled through various sectors, underpinning the contemporary global economy, ranging from artificial intelligence (AI) and machine learning to biotechnology, quantum computing, self-driving vehicles, and the Internet of Things, causing disruptions and economic fallout. The semiconductor industry, often overshadowed by its technical intricacies, is in fact a linchpin enabling economic activities valued in the trillions of dollars annually. Consequently, the shortage has laid bare the sector’s pervasive influence, underscoring its critical role in the global economy.
As we delve into the ramifications, it becomes clear that the damage to the semiconductor supply chain has significant consequences for the future of the digital age. These vulnerabilities touch upon various aspects of state functions highlighting the need for a more resilient and adaptable framework to navigate the complexities of the digital era. The following research emphasizes the importance of this omnipresent technology, analyses the factors that are shaping the global scarcity, how stakeholders will need to respond to the threats, and how it affects the industry, followed by a forward-looking analysis aiming to inform policymakers and CEOs on what to expect and how to navigate to the challenges brought by the semiconductor supply chain shortage.
ARTICLE | 25 PAGES
