The Costs of U.S.-China Semiconductor Decoupling – CSIS | Center for Strategic and International Studies
Blog Post — May 25, 2022
‘New Perspectives on Asia’ highlights the research of junior CSIS staff and interns on issues that are quietly shaping the world’s most dynamic region.
As Washington and Beijing move toward “partial” technological decoupling, semiconductor chips have emerged as a key national security priority. In recent years, the United States has increased export controls against Chinese technology firms, and both sides have pursued industrial policies to promote domestic semiconductor manufacturing. A long-term concern for investors and multinational firms will be whether ongoing developments eventually snowball into a full-fledged U.S.-China semiconductor decoupling. Based on their deep integration in- and complementary positions along the global semiconductor value chain, a complete chip decoupling would carry immense economic and innovative costs.
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