Why the World’s Powers Are Locked in a Battle Over Computer Chips

Computer chips are the engine room of the digital economy, and their growing capabilities are enabling technologies such as generative artificial intelligence that promise to transform multiple industries. Their critical role was highlighted when the coronavirus pandemic disrupted chip production in Asia, tipping global technology supply chains into chaos.

Small wonder, then, that the devices are now the focus of intense competition between the world’s economic superpowers. The US has already rolled out an array of restrictions that aim to curtail China’s semiconductor ambitions and ensure America stays as a leader in a vital arena. Chips are likely to remain a focal point for the incoming Trump administration, which aims to shore up American prowess and manufacturing.