Who is winning the US-China chip war?

A fight for the future of advanced manufacturing

Illustration of a bald eagle guarding a group of CPU chips in a nest
Beijing has authorized its own "massive barrage" in the so-called "chip war"
(Image credit: Illustration by Stephen Kelly / Getty Images)

The battle for global supremacy between the United States and China comes down to one sector: Semiconductor chips. That contest is "entering a new phase," Bloomberg said, as the American government pumps $100 billion into subsidies for tech firms and China builds dozens of new facilities to strengthen its own supply chain. China is the "largest global supplier" of older "legacy chips," but the Biden administration is aiming to use its investment to help control nearly 30% of the overall chip market by 2032. 

China isn't standing pat. Beijing has authorized its own "massive barrage" in the so-called "chip war," Forbes said. It created a new fund, valued at $47.5 billion, to help make China "self-sufficient in producing and advancing semiconductor technology" and even to "assume a dominant role" that will allow it to sideline Taiwan — a chip-manufacturing powerhouse that also sits at the center of U.S.-China tensions. The stakes are high. Maneuvers in the chip war "will reverberate in every high-tech boardroom and war room worldwide."

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.