How the chip war and the future of AI are inextricably linked
In "Chip War: The Fight for The World’s Most Critical Technology", Prof Chris Miller delves into the delicate relationship between the semiconductor supply chain and geopolitical tensions. Miller highlights the significant shortage of chips essential for training AI systems, with a staggering 90% being manufactured by a single company. Rooted in defense systems from the 1950s and 1960s, semiconductors have evolved to be at the forefront of contemporary geopolitical conflicts, playing a pivotal role in advanced military equipment. East Asia is identified as a hotspot for an escalating arms race where semiconductors will be paramount. While AI thrives on increasing computing power, the limitation lies in chip access, leading to governments intervening in unprecedented ways. Only five countries dominate the AI chip production sphere, leaving China heavily reliant on imports despite being an electronics giant. Miller underscores the intricate complexity of manufacturing these chips, emphasizing the leading role of Taiwan, a nation at the heart of major geopolitical tensions. This burgeoning "chip war", interlacing technology and geopolitics, is set to leave a lasting impact on the global electronics industry.