Chip War: The Fight for the World's Most Critical Technology

by Chris Miller

In Washington and in the chip industry, almost everyone had drunk their own Kool-Aid about globalization. Newspapers and academics alike reported that globalization was in fact “global,” that technological diffusion was unstoppable, that other countries’ advancing technological capabilities were in the U.S. interest, and that even if they weren’t, nothing could halt technological progress. “Unilateral action is increasingly ineffective in a world where the semiconductor industry is globalized,” the Obama administration’s semiconductor report declared. “Policy can, in principle, slow the diffusion of technology, but it cannot stop the spread.” Neither of these claims was backed by evidence; they were simply assumed to be true. However, “globalization” of chip fabrication hadn’t occurred; “Taiwanization” had. Technology hadn’t diffused. It was monopolized by a handful of irreplaceable companies. American tech policy was held hostage to banalities about globalization that were easily seen to be false.