Globalisation, Deglobalisation and the Role of the Semiconductor Industry

Abstract

This study aims to address the impact of the semiconductor industry on the move toward globalisation and deglobalisation through an assessment of the history of the industry since the invention of the first integrated circuit (IC) in 1958 and the current challenges facing it in light of the ongoing US-China ‘chip war’. Building on an analysis of the rise of Japan, South Korea and Taiwan’s semiconductor industry and the interconnected and interdependent nature of the semiconductor supply chain, it becomes evident that the semiconductor industry was a driving force behind globalisation. On the other hand, the ‘chip war’ launched by the US via a set of extraterritorial export controls to curb China’s aspiration to become a leader of the chip industry has already impacted the future of the global trade. The commitment of the US and its allies to reshoring or ‘freindshoring’ the supply chain of the industry will determine whether the chip war can push the world toward deglobalisation.