How do national security concerns affect chip globalisation?

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National Security Concerns Threaten Chip Industry Globalisation

National security concerns and geopolitical tensions are significantly impacting the globalisation of the world's chip industry, ushering in a turbulent period for the sector. These factors have cast doubt on the previously projected achievement of US$1 trillion in sales by 2030 for the global semiconductor market.
US Trade Blacklist Impacts Chinese Chipmakers

The United States has implemented trade restrictions, placing companies like Yangtze Memory Technologies (YMTC) and other Chinese artificial intelligence chip sector players on a trade blacklist. This action was initiated due to concerns that American technology could be diverted to blacklisted Chinese technology giants such as Huawei Technologies Co Ltd and Hikvision.
Supply Chain Disruptions Due to Export Controls

The US trade blacklist directly affects YMTC's operations by prohibiting its suppliers from shipping US goods to the company. Obtaining the necessary licenses for such shipments is described as difficult, thereby creating significant supply chain challenges for YMTC.
Industry Facing an Era of Uncertainty

The chairman of YMTC, Chen Nanxiang, articulated that the current global semiconductor industry is experiencing a turbulent era. He expressed skepticism regarding the industry's ability to meet the ambitious US$1 trillion sales forecast by the end of the decade, directly attributing these doubts to the prevailing geopolitical landscape and national security considerations.

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How do national security concerns affect chip globalisation?

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