The US has proposed a semiconductor industry alliance between the United States, Taiwan, South Korea, and Japan to stop China from gaining dominance in the sector. The South Korean government is unwilling to risk the operations of South Korean chipmakers like Samsung, who have a core manufacturing infrastructure in China. The Taiwanese government has accused China of waging economic warfare by stealing technology and taking away skilled engineers.

Semiconductors or chips are the essential building blocks in technological innovation and economic development. These chips can be found everywhere in electrical devices, including smartphones, electric vehicles, hypersonic weapons, airships, pacemakers etc. While China manufactures most of the world’s computers and smartphones, it imports almost all the semiconductors needed to run these gadgets. To remove its technological dependence, China engages in industrial intelligence and other activities to develop its semiconductor industry.