The chip shortage has wreaked havoc on many industries, so the US is making clear efforts to invest in the semiconductor industry, which some consider the "new oil".
Computer chips are used in various industries, from smartphones and microwave ovens to cars, missiles and planes.
And a report published by “Fox” website quoted Pat Gelsinger, CEO of Intel, as saying that chips are “critical to every aspect of human existence.” He added, “Everything is becoming more and more digital, and everything digital works like "Conductors. So, this is critical to every aspect of human existence. Oil reserves have defined the geopolitics for the past five decades, and the existence of technology and semiconductor supply chains will define the geopolitics of the years to come."
But what are electronic chips?
What is it made of?
Electronic chips are small pieces made of silicon, which are encapsulated in a plastic or ceramic container called a package. Electronic chips amplify electrical signals, or act as an on/off switch in computer applications. The chip can be a single transistor, or a circuit. An integrated circuit comprising an interconnected group of transistors.
Transistors are the most important element in the electronic circuit, and act as valves that allow current to flow in one direction, and the electronic circuit consists of other elements besides transistors such as capacitors and resistors, where the resistors provide a specific amount of resistance to the current while the capacitors store the electric charge, and there is an element in the circuit Electron works to store energy in the form of a magnetic field called an inductor.
The chips contain a set of electrical doors that can be controlled to allow or block the flow of electric current.
Manufacturing electronic chips requires special factories, and the production process begins with cutting the material sheets into thin slices, then electronic elements are added to the surface of the chip using light printing technology, and these elements are linked together using thin wires to create electronic circuits.
When an electric voltage is applied to the electronic chip, the electric current flows through the electric doors, and this allows electrical signals to be converted into movements of electrons through semi-conductive materials, and this allows the electronic chip to work according to specific programming and produce the electronic signals necessary for the operation of various electronic devices.
Electronic chips vary in size, complexity, design and performance, and their manufacture requires the use of modern and advanced technologies, in a process that requires careful monitoring of temperature, pressure and concentration of the materials used, as well as precise surface cleaning and preparation procedures before adding electronic components.
In addition, the electronic chip industry needs advanced technologies to test and analyze its performance, as rigorous testing processes are performed for electronic chips to ensure their quality, durability, and reliability.
Therefore, microchips are an important innovation in the world of electronics, and they are of great importance in improving the performance and functionality of many electronic devices available in the market.
Electronic chips consist of multiple layers, and are manufactured by advanced machines called "chip processors". The process takes place in special rooms with specific temperatures and high hygiene conditions to ensure the quality of the final chips.
The manufacture of an electronic chip involves placing multiple layers of electrical circuits, and the arrangement and placement of these layers is precisely controlled, in order to provide the required electronic features.
The electronic chips are connected to other electronic devices and tools using a technique called "wire binding". This is done by connecting thin copper wires to the electronic chip, and then connecting these wires to other electronic devices.
The materials that electronic chips are made of
Electronic chips consist of the main elements, which are:
Conductors: They are elements characterized by their ability to pass electric current, such as copper and aluminum.
Insulators: They are elements characterized by their inability to pass electric current, such as plastic and glass.
Semiconductors: These are elements that are not as good at passing electric current as conductors, but are better than insulators, such as silicon.
What is the reason for the scarcity of electronic chips?
Electronic chips can be classified as relatively scarce commodities for several reasons, including:
Manufacturing cost: Manufacturing electronic chips requires the use of advanced and expensive techniques and equipment, and this makes their cost very expensive.
Global demand: The demand for electronic chips increases from technologically advanced countries, and this happens at a time when the use of electronic chips is expanding in many industries and applications, and then this global demand affects the availability of electronic chips in the market.
Reliance on rare materials: Electronic chips contain a number of rare materials such as tungsten, tantalum, cobalt, gallium, and others, which are extracted from private mines in some countries, and this makes their availability difficult and increases the cost of production.
Which countries are famous for manufacturing electronic chips?
The United States of America: It is one of the leading countries in the manufacture of electronic chips, as it has a large group of companies and factories working in this field, such as Intel and Apple.
Japan: The chip manufacturing sector in Japan is large and developed, and includes many large companies such as Sony Corporation and Toshiba Corporation.
South Korea: A group of large companies are active in the electronic chip industry in South Korea, such as Samsung and LG.
Taiwan: Many start-up companies specializing in the electronic chip industry are active in Taiwan, such as Taiwan Semiconductor and Taiwan Star.
China: China is an emerging country in the electronic chip industry, and includes many large and emerging companies in this field, such as Huawei and Xiaomi.
According to data from the Semiconductor Industry Association, US companies have invested nearly $200 billion in 40 separate projects, adding an estimated 40,000 jobs.
Chip war with China
The chip war between China and the United States has intensified with Beijing poised to spend $143 billion to boost manufacturing.
Until recently, America was designing and making the fastest chips, and it maintained its leadership as the No. 1 superpower. But it has begun to decline, undercut by competitors in Taiwan, Korea, Europe, and above all, China.
And America let the main components of the chip-building process escape its grip, which contributed not only to a shortage of chips around the world, but also to a new cold war with China, and controlling chip manufacturing in the 21st century will be like controlling oil supplies during the 20th century. The country that controls this industrialization stifles the military and economic power of other nations.
Perhaps the most prominent example of this is the restrictions imposed by the administration of former US President Donald Trump in June 2020 on foreign semiconductor companies that use American technology and equipment, and these restrictions prohibit exports to the Chinese company “Huawei”, and on top of those companies that are required to comply. Taiwan Semiconductor Manufacturing Company (TSMC) is Huawei's main supplier of advanced chips, which has become in a difficult competitive position in the smartphone and network equipment market.
Currently, Taiwan accounts for about 92% of the global production of semiconductors with a precision of less than 10 nanometers, making it the main supplier of the vast majority of the chips that power the most advanced devices in the world, starting with the iPhones of Apple. Even the F-35 fighter jets, about 60% of the chips manufactured by TSMC are for US companies.
In August 2022, the US Congress approved $52.7 billion to support semiconductor manufacturing and research, as well as an investment tax grant of 25% for chip factories valued at about $24 billion.
The legislation aims to improve competition with China by strengthening US manufacturing, supply chains and national security, and investing in research and development, science and technology.