Trump sends a clear message: USA controls the chip market!

Trump sends a clear message: USA controls the chip market!

Geopolitical tensions between the US and China continue to take center stage, particularly over access to microchips, which are crucial to the next wave of technology. In this context, US President Donald Trump has changed his position and is now pursuing aggressive negotiating tactics that he originally drew from the real estate business. The aim is to prevent China from becoming a leading power and to position the USA as a key player in the global chip market. How the Süddeutsche Zeitung reports, Trump is sending a clear message to Beijing: the USA sets the rules of the game.

China's reliance on cutting-edge microchips is at the center of this dispute, as the country relies on imports to advance innovative technologies. To counter this trend, the US has imposed sanctions on China aimed at stopping the country from importing and producing advanced microchips. Additional information from daily news make it clear that other countries such as the Netherlands and Japan have also joined the US sanctions.

Taiwan's role in chip production

Another important aspect in this issue is the role of Taiwan, whose companies produce 90% of the most advanced microchips. As tensions continue, it is clear that China is currently unable to produce high-performance chips below 7 nanometers itself. This limitation forces Chinese companies to conduct their own research in order to become less dependent on foreign technologies. This contradicts the US's original desire to curb China's technological dominance.

The sanctions have caused microchip prices to double, further hurting China's competitiveness in the international market. Nevertheless, experts believe that China may soon be able to produce high-performance chips independently. Although both sides are moving towards military escalation, no concrete steps have been taken in this direction so far. This could also be because a military conflict would cause severe economic damage to both countries.

Geopolitical tensions and supply chains

An incident in June 2023 illustrates the tense situation: a Chinese warship pushed away a US destroyer in the Taiwan Strait. A blockage of supply chains in this key region would have significant economic consequences for all parties involved, including the United States. Access to and control over microchips is therefore considered strategically important as they are indispensable for key technologies such as artificial intelligence, space travel and the military.

In conclusion, the race for microchips between China and the US is not just a question of technology, but also has deeper geopolitical dimensions. The developments of the next few years will be crucial for the global balance of power and future technological progress.