0x02 A Siliconpolitik Framework
Mapping the instruments of semiconductor geopolitics
There’s so much happening in the world of semiconductor geopolitics that we just cannot cover all happenings in our fortnightly mailer. And so, updates on this section will be shorter, more frequent, and somewhat irregular. If you have received this email, you are subscribed to both editions. If you find this section uninteresting, you can unsubscribe from it without affecting the delivery of our fortnightly mailer.
Over the last couple of years, there is a lot of chatter about semiconductor geopolitics. That semiconductors are strategically important is—all of a sudden—conventional wisdom now. You will come across a lot of analyses connecting specific business moves by companies or nation-states with the purported geopolitical impact.
What I want to do is of a broader scope. For instance, I still haven’t come across a study that answers some fundamental questions:
How do states conceptualise the impact of semiconductors on national power?
Given #1, what are the strategic objectives states perceive in this sector ?
Given #1 and #2, what are the available instruments with nation-states to deploy in this domain?
What could be the repercussions (intended and unintended) of deploying each of the instruments mentioned in #3?
In search of answers to these questions, here’s my work-in-progress framework. It is not exhaustive and I hope to build on it further. But even at this stage, it does compile a lot that is happening in semiconductor geopolitics. I hope you find it useful. Do send in your comments and brickbats.
HomeWork
Interesting reads on siliconpolitik
[Photo Essay] Check out the NYT photo feature of an Intel foundry. 😲😲
[Article] “Such is the state of the chip industry that the better the numbers get, the worse investors seem to feel about it.” writes Dan Gallagher in an important article for WSJ. A lot of industry analyses lately focus on the booming sales and predict that the future linearly (Example). There’s reason to be circumspect of such linear projections.
[Report] I have written earlier that beyond the current supply shortage, the battle for semiconductors will be about human capital. Here’s one report which discusses Taiwanese attempts to block China from poaching chip design talent.