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China-US semiconductor war: Battle for 'new oil' accelerates China's photonic chip development and redefines the future of global technology

Written by Deborah Araújo
Published 14/10/2024 às 09:40
Semiconductor War The fight for new oil and the advance of photonic chips in China
Photo: DALL-E

Understand how the dispute between China and the US for control of semiconductors is shaping the future of global technology and driving the development of photonic chips.

The semiconductor war between China and the US is one of the biggest technological conflicts of our time. At stake is not only the dominance of an industry crucial to the global economy, but also technological, military and economic supremacy. With the development of photonic chips, called the “new oil” due to their strategic importance, the competition is heating up. In this article, we will explore how this war is unfolding, the relevance of semiconductors and China’s advances in this scenario.

What are semiconductors and why are they the “new oil”?

Semiconductors are essential components for the manufacture of virtually all modern electronic devices: smartphones, computers, cars, artificial intelligence systems and even defense technologies. They act as the “brain” of these machines, ensuring that they process information and perform their functions correctly.

Just as oil was the basis of the industrial revolution in the 20th century, semiconductors are now driving the technological revolution. Therefore, mastering their production is essential for the growth and security of any country. It is no wonder that this dispute is called the “semiconductor war”, since whoever controls this technology will have a huge strategic advantage.

The semiconductor war between China and the US

The semiconductor war between China and the US has intensified in recent years. The US, a leader in the development of advanced technologies, has imposed a series of sanctions and restrictions on China, aiming to prevent access to machinery and technologies essential for the production of next-generation semiconductors. A clear example of this was the blocking of the export of cutting-edge chips to Chinese giants such as Huawei and SMIC.

China, for its part, is investing heavily in its semiconductor industry to reduce its dependence on foreign suppliers. The goal is clear: to achieve self-sufficiency and dominate the production of these essential components. To this end, the Chinese government has allocated billions of dollars to boost research and development of semiconductor technology in the country.

The advancement of photonic chips

In this race for dominance in semiconductor production, a new technology is gaining momentum: photonic chips. These chips are capable of transforming electrical signals into pulses of light, which promises to revolutionize the way electronic devices work.

Silicon photonics, one of the main areas of research in this field, is being developed to optimize the transfer of information between chips and machines, bringing processing speeds much higher than those we have today. This innovation is especially promising in areas such as artificial intelligence and large data centers, where the need to transfer large volumes of data quickly is essential.

China's role in photonic chip production

China is making a name for itself in the development of photonic chips. Recently, the Shanghai Institute of Information Technology and Microsystems, in partnership with the Lausanne Institute of Technology in Switzerland, achieved a major milestone by replacing lithium niobate, traditionally used in the production of photonic chips, with lithium tantalate, a cheaper and more efficient material.

In addition, the JFS lab in Wuhan has successfully integrated a laser light source onto a silicon chip, a first for the country. These advances put China at the forefront of photonic chip production, bringing it closer to large-scale manufacturing of this technology. If things continue at this pace, the country could become the world leader in the production of these advanced semiconductors.

Impact of photonic chips on artificial intelligence

A artificial intelligence (AI) is one of the areas that can benefit most from silicon photonics. This is because photonic chips have the ability to process information at much higher speeds than traditional chips, which is essential for training and executing complex AI algorithms.

Companies such as TSMC, Intel and Samsung have been working on developing technologies related to silicon photonics for years. However, China is advancing rapidly and could become a serious competitor in this market.

Geopolitical and economic context

The semiconductor war is not just an economic dispute, but also a matter of national security. Semiconductors are essential for the development of advanced military technologies, such as missile systems and drones. Therefore, controlling the production of these components ensures autonomy and security for any country.

Taiwan, home to TSMC, one of the world’s largest semiconductor manufacturers, also plays a crucial role in this dispute. The island has a close relationship with the US but is claimed by China as part of its territory. Any geopolitical instability in the region could affect the global supply of semiconductors, and this is a concern for both governments and companies around the world.

The Future of Semiconductor Warfare

With the advancement of photonic chip technology and the increase in semiconductor investment, the semiconductor war between China and the US is far from over. Each country is looking for ways to secure its technological and economic leadership, knowing that whoever dominates this market will have a significant competitive advantage.

In the US, the CHIPS Act, passed in 2022, has earmarked billions of dollars to support domestic semiconductor manufacturing, seeking to reduce dependence on foreign suppliers. Meanwhile, China continues to invest in its own production chains, seeking to reduce its dependence on international suppliers and strengthen its global position.

The struggle for control of semiconductor production, especially photonic chips, will continue for many years to come. And with each technological advance, this war will become even more fierce.

This is a race that we must all follow closely, as the results of this technological war will impact the economy, security and innovation in the coming years.

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Deborah Araújo

I write about renewable energy, automobiles, science and technology, industry and the main trends in the job market. With a close eye on global developments and daily updates, I am dedicated to always sharing relevant information.

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