The Latest ‘Space Race’ for Computer Chips

Many of the most significant technological stories of our time revolve around silicon chips. Car plants all over the world have come to a halt without them. The technology to produce them is now seen as a crucial tool in the United States’ trade war with China.

However, who wins the artificial intelligence race will be determined by the one who has access to the most recent and powerful versions of tech supervisions.

From Ford and General Motors in the United States to Honda in the United Kingdom and electric carmaker Nio in China, major automakers have had to reduce production due to a chip shortage. It appears that the pandemic is to blame mostly, compared to any other forecast regarding chip demand, which appears to be out of date.

Although years of digital transformation happened in weeks, demand for gadgets skyrocketed. Because of the plummeting of new car sales, chip orders were canceled by auto executives. Along with their chip suppliers, they were caught off guard by an unforeseen market turnaround.

One thing has become apparent as a result of the shortages: there is no longer just one kind of chip. Power in the semiconductor industry changes like wind as demands shift.

Intel was the only chip-maker in many people’s minds for decades, thanks to its marketing slogan “Intel Inside.” That, however, is no longer the case. There are two trends to contemplate: the use of chips for data storage and the importance of graphics processors (GPUs), which aren’t only for bringing games to life but also play a key role in artificial intelligence applications.

Although Mr. Windsor also discusses the critical position of ASML, which is the only supplier of what is essentially a printing press for the newest and tiniest silicon chips. “The Obsecure Dutch Company”, in an article last year, Leo Kelion, the BBC’s technology desk editor, described the business.

Despite not becoming a household brand, it has a market capitalization of about 184 billion euros ($220 billion; £159 billion).

Entry to equipment that builds the new AI chips is a crucial weapon in China’s and the United States’ fight for artificial intelligence supremacy.

The stakes, according to Dr. Pippa Malmgren, a former adviser to President George W. Bush, are as high as they were in another technical battle: the space race. “At the geopolitical stage, the current space race is for computing capacity. Who can collect the most data and process it the quickest?

That is why both China and the United States, as well as the European Union, are investing heavily in quantum computers, which are extremely powerful supercomputers. All of this necessitates the use of chips “She clarifies.

Taiwan, which is home to TSMC, is at the forefront of this war. You’d think that, given its fight for independence from China, it would do whatever the US wanted.

However, Dr. Malmgren cautions that things are not as straightforward as they appear: “Chinese capital is heavily invested in Taiwan.” And, if you ask me if you can get Chinese support out of the Taiwanese economy, I believe the response is “very difficult.”

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