Global Semiconductor War Explained
October 28, 2025 2025-10-28 14:38Global Semiconductor War Explained
Tech Wars: The Geopolitics of Semiconductors (TSMC, CHIPS Act)
Why Semiconductors Define the New Geopolitical Battlefield?
In today’s world, power is measured not only by military strength or natural resources but by control over advanced technologies.
At the heart of this technological dominance lies the semiconductor supply chain—the invisible force driving global innovation.
From smartphones and AI systems to defense technologies and supercomputers, semiconductors are the foundation of modern economies.
As nations compete for technological supremacy, the global semiconductor war involving the US, China, and Taiwan has emerged as one of the most significant geopolitical challenges of the 21st century.
The battle for chip dominance reflects broader tensions in global trade, security, and diplomacy.
For students of international relations, understanding the geopolitics of semiconductors provides insight into how technology shapes global power dynamics.
The Master of Arts in International Relations, Security, and Strategy offered by the Jindal School of International Affairs (JSIA) at O.P. Jindal Global University (JGU) empowers students to analyze such complex intersections of technology, security, and diplomacy through a multidisciplinary lens.
The Semiconductor Supply Chain: The Heart of Global Technology Rivalries
How the Semiconductor Supply Chain Works?
The semiconductor industry is a highly globalized ecosystem, involving multiple stages—design, fabrication, testing, and assembly—often spread across continents.
- Design is dominated by companies in the US like NVIDIA and Qualcomm.
- Fabrication, the most complex stage, is largely controlled by Taiwan Semiconductor Manufacturing Company (TSMC).
- Assembly and testing are centered in Southeast Asia.
This interdependence means that disruptions in any part of the semiconductor supply chain can have far-reaching global consequences.
Why the Semiconductor Supply Chain Became a Strategic Asset?
Semiconductors are not just economic products—they are strategic assets that determine national security and technological leadership. Control over chip technology equates to power over global innovation and military capabilities.
This has intensified the tech cold war over semiconductors between the US and China, with both nations investing heavily to achieve self-reliance in chip production.
TSMC and the Taiwan Factor in the Global Semiconductor War
TSMC’s Dominance in Semiconductor Manufacturing
TSMC, the world’s leading chip manufacturer, produces over 90% of the world’s most advanced semiconductors. This makes Taiwan’s role in global chips indispensable.
Its ability to produce high-performance chips used in smartphones, data centers, and military hardware gives it immense strategic leverage.
TSMC Geopolitics: Balancing Between the US and China
Taiwan’s semiconductor dominance places it at the epicenter of TSMC geopolitics. On one side, the United States seeks to secure its chip supply chains by bringing production closer to home.
On the other, China views Taiwan’s semiconductor capabilities as essential to its own technological ambitions.
This delicate balance has transformed TSMC into both a technological powerhouse and a geopolitical pressure point, caught between the competing demands of the US and China.
Security Implications for Global Powers
The potential disruption of Taiwan’s semiconductor manufacturing—whether due to conflict or natural disaster—could destabilize global technology industries.
This risk has prompted nations to rethink their semiconductor policies and invest in regional manufacturing resilience.
The CHIPS Act and Its Ripple Effect Across the Globe
Understanding the CHIPS Act
In 2022, the United States enacted the CHIPS and Science Act, a landmark policy aimed at revitalizing domestic semiconductor manufacturing.
By offering financial incentives and research funding, the CHIPS Act seeks to reduce America’s dependence on Asian chip producers and strengthen its national security.
The Impact of the CHIPS Act on US-China Trade Relations
The impact of the CHIPS Act on US-China trade has been profound. Export restrictions on advanced chips and manufacturing equipment have heightened tensions between the two powers.
This has escalated the tech cold war in semiconductors, as China accelerates its efforts to develop indigenous chip technologies while the US works to secure supply chains through alliances with Japan, South Korea, and Taiwan.
Ripple Effects: Opportunities and Challenges for Other Nations
The CHIPS Act ripple has opened new doors for emerging economies. Nations like India are leveraging this moment to attract investments and develop their own semiconductor ecosystems.
The semiconductor policy in India—supported by initiatives like “Digital India” and “Make in India”—aims to turn the country into a hub for chip design, assembly, and research.
The Tech Cold War: US, China, and the Future of Semiconductors
Decoupling and Technological Sovereignty
The semiconductor confrontation is part of a larger process of decoupling—where the US and China are building parallel technological ecosystems.
The goal is technological sovereignty, ensuring self-reliance in critical sectors. Export bans, subsidies, and alliances are now tools of economic statecraft.
Global Implications of the Semiconductor Tech War
The geopolitics of semiconductors extends far beyond Washington and Beijing.
- Europe is investing heavily in semiconductor research through its own Chips Act.
- Japan and South Korea are reinforcing partnerships with the US.
- Taiwan, meanwhile, remains both indispensable and vulnerable.
These developments reveal that the semiconductor conflict is not just about technology—it’s about global power and the shaping of a new world order.
India’s Strategic Opportunity in the Semiconductor Geopolitics
India’s Current Position and Challenges
India currently lacks advanced fabrication facilities but holds a strong position in semiconductor design and talent.
With global players seeking to diversify away from East Asia, India’s policy reforms offer promising prospects for investment.
Semiconductor Policy in India and Global Collaboration
The semiconductor policy in India is driven by strategic partnerships and public-private initiatives.
Collaborations with the US, Japan, and Taiwan under the Quad alliance highlight India’s growing importance in this evolving landscape.
By aligning with global supply chain diversification, India can benefit from the ripple effects of the CHIPS Act and establish itself as a key player in semiconductor research and design.
Why Understanding the Geopolitics of Semiconductors Matters for Future Leaders?
From Technology to Strategy: Lessons for International Relations Students
Semiconductor geopolitics offers vital lessons in how economics, technology, and national security converge.
For international relations students, it demonstrates:
- How economic sanctions shape global trade.
- The role of strategic alliances in securing technological advantage.
- How countries balance cooperation and competition in an interconnected world.
Building Expertise Through Education at JGU
At O.P. Jindal Global University, the Master of Arts in International Relations, Security, and Strategy equips students to understand such global complexities.
- It is India’s only online MA in International Relations that unites diplomacy, defense, and strategy.
- Students gain the analytical skills needed for careers in diplomacy, conflict resolution, and political risk analysis.
- As one of the leading international relations master’s programs in India, JGU prepares future leaders to engage critically with global challenges—from the tech cold war in semiconductors to shifting geopolitical alliances.
Conclusion: The Future of the Global Semiconductor War
The global semiconductor war represents the defining struggle of our time—a contest not just for market dominance but for technological and geopolitical power. As the CHIPS Act, TSMC geopolitics, and semiconductor supply chain realignments continue to reshape international relations, nations will redefine their policies and alliances.
For students and professionals interested in the intersection of technology and strategy, the M.A. in International Relations, Security, and Strategy at O.P. Jindal Global University offers the tools to analyze, interpret, and influence this evolving global order.
The next generation of diplomats, strategists, and analysts will not only study the geopolitics of semiconductors—they will shape it.
