In recent years, the US imposed a set of restrictions on exports of advanced semiconductors and chipmaking equipment to China. While China’s nanoelectronics sector has been cut off from access to leading technology necessary to produce cutting-edge chips competitively, side effect of the restrictions has been China‘s growing market share in mature nodes as it doubles down on self-reliance. In face of the global chip shortage and Europe’s struggles to keep pace with the global semiconductor industry, the bloc decided to boost its own domestic chip production through the EU Chips Act. The legislation aims to strengthen the EU’s supply chain resilience and reduce geopolitical risks linked to the growing US-China tensions. While experts diverge on the consequences of a potential Taiwan contingency on the semiconductor industry, the island’s visibility has significantly increased thanks to the issue.

This month’s guest

• Mathieu Duchâtel, Resident Senior Fellow and Director of International Studies at Institut Montaigne.