Cold war was never a declared one between USA and then USSR. Now we have another war that is, Chip war between America and China. First salvo was fired by America banning Huawei getting chips from American manufacturers and their associates. As chip war intensified China responded in style taking advice from sun Tzu:
Says the grand strategist, Sun Tzu succinctly in two sentences:
1.“By altering his arrangements and changing his plans, he keeps the enemy without definite knowledge”
2. Let your plans be dark and impregnableas night, and when you move, fall like a thunderbolt”
Here is how China turning chip war from adversity to opportunity by the judicious use of business manoeuvre:
1. China produced only about 30% of chips domestically and imported around 70% from outside mainly from America and TSMC (Taiwan Semiconductor Manufacturing Company) which is under US control. China is upping her investment in local chip manufacturer SMIC (Semiconductor Manufacturing International Corporation) to meet the challenge. The exact amount invested is shrouded in mystery.
2. Moreover, China expanded her investment slowly and steadily in core technology for the last decade under the nose of America. For example, Artificial Intelligence and Quantum Computing are two areas China has upper hand even though China continues its state of denial of her stellar progress.
3. It came as a big blow when Huawei unveiled 5G technology before America did. Huawei is now on par with Samsung which produces semiconductors for her own mobile sector and for supply to number of countries including China.
4. The so called back door transaction between Huawei and Samsung was never made official and techno partnership between the two giants has gone mostly un-noticed even by the watchful eyes of American establishment.
5. Unsurprisingly, Artificial Intelligence used by Chinese manufacturers in cloud computing shows their technical excellence, more than anything else.
The big question now is how the chip war can sustain itself when China is ready and America is not!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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