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● Chip War: Geopolitics

Recent Analysis of Global Semiconductor Prospects: China, the United States, Taiwan Competition, and Challenges for Korean Semiconductors

1. China's Semiconductor Independence Push and Geopolitical Situation

China is accelerating its pursuit of semiconductor technology independence.
Despite U.S. sanctions, including restrictions on ASML's EUV equipment, China is trying to increase its competitiveness by developing its own and alternative technologies.
According to domestic and foreign news, China's development of 7nm and 5nm chips is also progressing rapidly.
At the same time, China has the upper hand in securing raw materials (such as rare earths), which can have a major impact on the global economy.
From a geopolitical perspective, as U.S. sanctions and China's strategic independence proceed simultaneously, the role of Taiwan's TSMC as an existing silicon shield is likely to weaken.

2. U.S. Chip Reshoring Strategy and Economic Burden

The United States is attempting to relocate semiconductor production domestically through a chip reshoring policy.
In the process of TSMC moving its production base, which has been mainly concentrated in Taiwan, to the United States, not only technological competitiveness but also massive investment and manpower supply issues are working in combination.
The U.S. government is trying to build semiconductor process, design, and research and development (R&D) infrastructure through tens of billions of dollars in support and subsidies,
However, success in the short term is not easy due to difficulties in large-scale investment, recruitment of manpower, and construction of supply chains.
The impact of the chip reshoring strategy on the existing technology ecosystem along with the economic cost burden should be carefully considered.

3. Taiwan's Geopolitical Risks and Future Prospects

Taiwan has long formed a semiconductor production cluster centered on TSMC.
However, the hegemonic competition between the United States and China and TSMC's reshoring decision are signals that Taiwan's geopolitical silicon shield role is weakening.
In particular, as China gradually mentions the possibility of invading Taiwan,
Taiwan urgently needs risk management in terms of military preparedness and economy and production technology.
Manpower issues and organic cooperation within Taiwan are expected to become more important.

4. Current Status and Challenges of the Korean Semiconductor Industry

Korea has shown competitiveness in the global semiconductor ecosystem along with China and Taiwan.
However, amid geopolitical instability between the United States and China, changes in the semiconductor strategy of China and the United States
This suggests the need for Korean semiconductor companies to reorganize from a global market share perspective.
In particular, strengthening technological capabilities in intermediate nodes (10nm, 14nm, etc.) and
Targeting new markets such as autonomous driving and robotics is a key key.
In addition to technological innovation, nurturing talent and expanding infrastructure are critical to securing the competitiveness of the Korean semiconductor industry in the future.

5. Key Factors for Winning in Global Competition

First, strong capital and investment – both the United States and China are promoting semiconductor manufacturing and technological innovation through large-scale investments.
Second, securing talent and professional education – In particular, securing manpower for semiconductor design and manufacturing processes is emerging as an important task.
Third, building a technology ecosystem and supply chain – As demonstrated by global leading companies such as TSMC and Intel, building a cluster and ecosystem is essential.
Fourth, geopolitical stability – Geopolitical tensions between the United States, China, and Taiwan are affecting the entire semiconductor supply chain.
Finally, innovative research and development (R&D) – Leading research and development in future technology fields such as AI and advanced nodes will be an important factor that will determine the global semiconductor landscape.

6. Overall Outlook and Investment Implications

The global semiconductor market is expected to be greatly shaken by various variables such as chip reshoring in the United States, strengthening technological independence in China, and geopolitical risks in Taiwan.
As key keywords such as global economy, TSMC, chip reshoring, semiconductors, and geopolitics imply,
Technology, investment, and infrastructure competition between the United States and China will remain a key issue in the future.
Korean companies must overcome disadvantages and focus on innovation and talent development,
We must actively respond to domestic and foreign policies and market changes to maintain global competitiveness.

Summary

The global semiconductor market is undergoing complex changes due to chip reshoring in the United States, strengthening technological independence in China, and geopolitical risks in Taiwan.
The United States is working to rebuild the domestic semiconductor ecosystem through large-scale investment and manpower acquisition,
Despite sanctions, China is promoting independence by securing technology and raw materials.
Taiwan is a hub of production clusters but is vulnerable to geopolitical pressure,
Korea urgently needs to secure global competitiveness by strengthening intermediate node technology, nurturing talent, and innovative R&D.

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TSMC and Chip Reshoring Strategy

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