Search

Begin New Search Topic Semiconductors Publication Year within 5 Years

1. Which companies are ahead in frontier innovation on critical technologies? Comparing China, the European Union and the United States

Author:
Alicia Garcia-Herrero, Michal Krystyanczuk, and Robin Schindowski
Publication Date:
05-2025
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Competition in critical technologies is attracting increasing attention not only because of the foundational nature of these technologies for other types of innovation, but also because of their role in the United States national security strategy. In this paper, we look into which entities in China, the European Union and the US innovate at the technology frontier in the three most important critical technologies – artificial intelligence, quantum computing and semiconductors – based on identification of the most radical novel patents in these technologies and their subsectors. Working with these pathbreaking patents, we look into the origin of the companies that file the largest numbers of them. US innovators dominate the innovation frontier for quantum computing and, to a lesser extent, AI, with Chinese innovators doing better in semiconductors. European innovators lag in all, but perform relatively better in quantum computing, in which they rank similarly to Chinese innovators. Furthermore, the innovation ecosystem is quite different across geographies. In the US, tech companies top the rankings of critical novelties and are highly concentrated: as many as three companies are in the top rankings of all of the three critical technologies. Frontier innovators in the field in which the EU competes most equally – quantum – are mostly research centres and not companies. China lies somewhat in between in all three domains.
Topic:
Science and Technology, European Union, Innovation, Artificial Intelligence, Semiconductors, and Quantum Computing
Political Geography:
China, Europe, Asia, and United States of America

2. Transatlantic Cooperation on Semiconductors: A US Perspective

Author:
Julia Tréhu
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Semiconductors are essential for the global economy, but recent supply chain disruptions and geopolitical tensions have highlighted new risks, leading to new policy approaches. US semiconductor strategy centres around three objectives. First, the funding provided through the CHIPS and Science Act is part of a larger push to strengthen domestic industry and manufacturing. Second, the US seeks to deny strategic adversaries of key technology through export controls. And third, it aims to secure the supply chains for critical technologies. The European and American semiconductor sectors are already tightly intertwined, and further coordination has occurred through forums like the Trade and Technology Council. But challenges remain, including the risk of a subsidy race. Further transatlantic cooperation on key aspects of these new industrial policies can ensure the realisation of shared objectives for a more resilient semiconductor sector.
Topic:
Science and Technology, Economic Policy, Transatlantic Relations, Industry, and Semiconductors
Political Geography:
North America and United States of America

3. Analyzing South Korea’s Semiconductor Industry: Trade Dynamics and Global Position

Author:
Hyung-gon Jeong
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
U.S. sanctions on China's semiconductor industry are causing major shifts in the global supply chain, affecting South Korea's industry due to its reliance on Chinese manufacturing. The Biden administration's increased sanctions, combined with global trends towards semiconductor self-sufficiency, are putting South Korea's semiconductor position at risk. Countries such as the U.S., China, and Japan are building up their domestic semiconductor industries, potentially affecting South Korea's position in the global market. Deeply integrated with China, Korean companies, face the challenge of reducing this dependence and adapting to the evolving supply chain landscape. This paper examines the import and export trends of the South Korean semiconductor industry over the last five years to assess its global standing, identify challenges, and suggest strategic directions. Using data from the Korea Customs Service from 2019 to 2023, the study analyzes trade patterns and supply chain configurations within South Korea's semiconductor industry. The industry is divided into six main categories and 33 subcategories, based on the analysis of 381 semiconductor-related items categorized under the Harmonized System at the 10-digit level. This detailed classification allows for an in-depth examination of trade trends, supply chain structures, and associated risks within the South Korean semiconductor industry. Moreover, this research uses the classification method described and UN Comtrade statistics to create a dataset on global semiconductor trade. This dataset is used to analyze the international presence of the South Korean semiconductor industry and its market shares in China across different segments.
Topic:
Trade, Supply Chains, and Semiconductors
Political Geography:
China, Asia, and South Korea

4. South Korea: Caught in the Crosshairs of U.S.−China Competition Over Semiconductors

Author:
Paul Triolo
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper explores how countries with advanced semiconductor industries are caught in the middle of the growing U.S.-China competition in technology that is focused on advanced computing. Among them, South Korea and its national champions, Samsung and SK Hynix, have arguably incurred some of the most significant pressure. This paper explores how those firms have billions of dollars of sunk investment in China-based facilities producing cutting-edge memory, and the future of these facilities remains in doubt after a series of U.S. export control measures unleashed by the U.S. Commerce Department starting in October 2022. South Korean companies are also players in other parts of the global semiconductor supply chain, including semiconductor manufacturing tools, and China remains an important market for both components and electronic devices. This paper argues that each country caught between the United States and China in technology competition faces difficult trade-offs in determining how best to support its leading companies while navigating changing and often what is viewed as arbitrary decisions coming from Washington that have already significantly disrupted global supply chains. Finally, at the same time as U.S. export controls are having a major impact on the ability of South Korean companies to retain business operations and market access in China, major front-end manufacturers, particularly Samsung, are also looking to expand their operations in the United States and benefit from U.S. CHIPS Act funding. This paper argues that all of the above dynamics put South Korea in one of the more complex positions as the industry faces continued restructuring, buffeted by both export controls and industrial policies.
Topic:
Supply Chains, Economic Security, Semiconductors, and Economic Competition
Political Geography:
China, Asia, South Korea, and United States of America

5. Time to Rethink Export Controls for Strengthened US-EU Cooperation and Global Trade Rules

Author:
Matthias Bauer and Dyuti Pandya
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The escalation of broad export controls by the US, under the guise of national security and the aim to curb technological transfers to potential adversaries,[1] marks a new epoch of bureaucratic oversight. The US push for broad export controls also underscores a critical juncture in US-EU relations and global trade rules. Broad export restrictions not only challenge the very foundation of free trade but also contribute to the erosion of Western technology leadership.[2] Unilateral export controls may start strong but eventually lose effectiveness and become counterproductive,[3] pushing non-US companies, particularly in the semiconductor sector, to find alternatives to US components.
Topic:
International Cooperation, European Union, Regulation, Exports, Trade, and Semiconductors
Political Geography:
Europe and United States of America

6. Fortifying Europe’s Semiconductor Ecosystem

Author:
Victor De Decker and Patrick Grady
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The chip manufacturing process, though intricate, is divided into three stages: design, production, and final assembly, testing, and packaging. Over the years, companies have started to specialise in a single aspect of one of these steps, making the global chip supply chain a complex web of interdependencies and a high degree of geographic concentration. Despite significant contributions to niches within this supply chain, Europe has historically lagged behind leading regions like the US and Asia in semiconductor production. This enduring gap underscores the need for strategic initiatives like the European Chips Act to bolster Europe’s position in the global semiconductor industry.
Topic:
Manufacturing, Supply Chains, Semiconductors, and Strategic Partnerships
Political Geography:
Europe

7. Action from Semiconductor Companies is Long Overdue

Author:
David Albright and Spencer Faragasso
Publication Date:
09-2024
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
The United States and its allies have struggled to stop the supply of controlled microelectronics to Russia, which then uses them in a variety of drones, missiles, and other weapon systems in its brutal war against Ukraine. While the United States and its allies can do more, it is time to turn far greater attention to the Western companies making these goods and demand far more from them. A recent companion study of trade data charting exports from China to Russia in a twenty-month period up to the end of 2023, conducted by one of us, showed that exports of the most critical microelectronics, electronic integrated circuits, amounted to $1.5 billion, steadily increasing throughout 2023, despite Western restrictions and pressure on China, which remains uncooperative, even hostile. 1 Electronic integrated circuits take on special significance, because Russia cannot make them, and there are limited manufacturers in the world, almost all in the United States and Europe. In a four-tier U.S. priority listing of banned electronic and other components and the means to make them, Tier 1 is exclusively composed of electronic integrated circuits. Aided importantly by China, Russia is countering the sanctions imposed by the United States and its allies. Without more countermeasures and enforcement, it would be unsurprising to find Russia continuing to acquire large quantities of restricted Western microelectronics needed for its war production.
Topic:
Sanctions, Weapons, Trade, Semiconductors, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and United States of America

8. Supply Chain Risks in EU-South Korea Relations: Semiconductor Industries

Author:
Sunkung Choi
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Recent geopolitical crises and the Covid-19 pandemic have exposed weaknesses in global supply chains, leading to disruptions in the flow of goods and creating shortages. The semiconductor shortage crisis between 2020-2021 exacerbated these issues, particularly affecting industries reliant on chips. This crisis prompted governments and industries to prioritise resilience and independence in supply chains. This paper examines the causes, effects and implications of the supply chain crisis, focusing on the economic relations between the EU and South Korea. Both parties recognise the importance of addressing supply chain vulnerabilities and have initiated collaborative efforts to strengthen critical industries like batteries and semiconductors. Moving forward, strategic collaboration between the EU and South Korea will be crucial for effectively addressing the supply chain crisis. Measures such as enhancing supply chain resilience, investing in research and development and fostering technological cooperation are essential for ensuring economic stability and navigating future challenges.
Topic:
European Union, Trade, COVID-19, Supply Chains, and Semiconductors
Political Geography:
Europe, Asia, South Korea, and Germany

9. Investigating the Effect of the U.S. Semiconductor Export Controls on China

Author:
Hyok Jung Kim, Jonghyuk Oh, and Hyuk Hu Kwon
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
his report examines the significant impact of U.S. semiconductor export controls imposed under the Biden administration in October 2022. These controls, which target a broad range of semiconductor manufacturing facilities and AI chips, are part of a strategy aimed at curbing China’s advancement in critical technologies. A notable 32.5% decline in China’s imports of semiconductor manufacturing equipment has been observed, particularly in regions with advanced production capabilities and foreign company operations, such as those involving Samsung Electronics and SK hynix. While Korea experienced substantial drops in exports to China, the Netherlands saw an increase, reflecting its dominance in specific technologies like lithography. The AI chip sector has also been affected, with China turning to downgraded chips due to restricted access to high-performance models from companies like Nvidia. South Korea must adapt by strengthening its upstream semiconductor industry, considering reshoring production, and collaborating with international partners to mitigate risks. As U.S. export controls continue to evolve, the global semiconductor industry may face increased fragmentation, making strategic responses from affected nations essential to maintain competitiveness. Additionally, ongoing monitoring and adaptation to the dynamic regulatory environment shaped by these export controls are crucial.
Topic:
Economics, Science and Technology, Exports, Artificial Intelligence, Imports, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America

10. Export Controls Game: Rethinking Global Integration

Author:
Sangjun Yea
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The article discusses how geopolitical interests are influencing trade policies and global supply chains, leading to a reevaluation of international relationships. The U.S. and China are specifically highlighted, with the U.S. implementing export controls on semiconductors to prevent China's military advancement, while China responds with its own export restrictions on essential raw materials. Using a game-theoretic model, the study illustrates how countries use export control measures to balance security interests and economic benefits, ultimately impacting the global semiconductor supply chain and production decisions of multinational corporations.
Topic:
Exports, Trade Policy, Economic Integration, Supply Chains, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America