Chip crisis: Taiwan bans export of high-end chips to China

The chip crisis is as topical as ever. However, not only a mere lack of semiconductors is rampant. On top of that, the battle has begun over who will ultimately be allowed to obtain the chip technology that is so important for many industries and who will not. China and the USA are playing the leading roles. Together with the island state of Taiwan, the United States wants to prevent the People’s Republic from gaining access to chip technology.  The focus is on high technologies for the military, according to a report from Bloomberg.

Fear of modern military technology

Chips have long been at work in more than just our computers and game consoles. In the course of digitalization, the little technical helpers are being inserted as mini-brains into virtually every technical device. This includes not only dishwashers, washing machines and cars. The military is also increasingly relying on chip technology to develop state-of-the-art weapons systems. China in particular seems to be taking a leading role in this respect. Of course, it is not only the U.S. that is afraid of the strengthening of the Chinese military. The fear is much greater, of course, on the part of immediate neighbors such as Taiwan. The island state has been in the People’s Republic’s sights for several months. It is above all the gigantic semiconductor industry that is presumably arousing China’s interest in annexation.

Despite its small size, Taiwan produces two-thirds of the world’s semiconductors. So one can understand that China’s interest in Taiwan has also increased with growing concerns around the rampant chip crisis. Of course, since Taiwan supplies the entire world with chip technology, Western nations also fear that the conflict could further fuel the chip crisis. Now, to protect themselves from the strength of the Chinese military via targeted export barriers, Taiwan and the United States have responded. For example, the government of Taiwan has now banned one of its largest companies from selling advanced chip technology to the Chinese military. This seems to indicate that high technology in semiconductors in particular could no longer be exported to China.

Taiwan leads the way, US follows suit

After Taiwan’s Ministry of Commerce publicly announced its stricter export controls, the United States also reacted. Thus, the United States also wants to think again about tightening its own technology exports to China. It does not take long to find the reasons for the two parties’ actions. Taiwan in particular argues with the protection of national security. After all, the export of high-end technology also threatens the theft of company secrets. China will probably be aware that it will have to set up its own chip production sooner or later. The accusations that the People’s Republic is not only stealing company secrets, but also poaching skilled workers from Taiwan,have been around for some time.

Meanwhile, Taiwan itself is currently more than ever between two stools. After all, China is undoubtedly one of the biggest buyers of modern semiconductor technology. But the fear of a violent incorporation of the island state also permanently hangs over the fruitful economic relations. Since in the meantime other economic partners such as the USA and the EU also want to build up independent semiconductor production with their respective chip acts, it is becoming difficult for Taiwan to position itself correctly. Finally, one fears as it were also for the economic strength. Who would have seen these serious consequences of the chip crisis coming just a few years ago?