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Georgetown University

Publication Date

Spring 2023

Program Name

Switzerland: Banking, Finance, and Social Responsibility

Abstract

As the demand for more advanced forms of technology continues to grow, so does the global importance and reliance on semiconductors. This research paper examines the impact of semiconductor shortages on both consumer and military production, as well as the geopolitical implications embedded within the global supply chain.

The paper begins by providing an overview of semiconductors, the global semiconductor market, and the impact of COVID-19 on the industry’s supply chain. It also discusses the importance of the Taiwan Semiconductor Manufacturing Company (TSMC) in the industry and its role in addressing semiconductor shortages.

Next, the paper discusses the impact of semiconductor shortages on the production of consumer goods such as smartphones, laptops, and automobiles. The US-China trade war and further geopolitical tensions between the US, China, and Taiwan have significantly disrupted the semiconductor supply chain, leading to shortages and price increases for consumer electronics industries. The paper also examines recent government intervention within high technology industries and specifically the semiconductor sector aimed at addressing the shortages faced during the pandemic and provides case studies of key companies affected by the semiconductor shortage.

The paper then examines the impact of semiconductor shortages on military technology production, such as advanced weapons and communications systems. The disruptions in the semiconductor supply chain have highlighted the importance of semiconductor manufacturing in national security and the geopolitical implications of these disruptions. The paper discusses the impact of US-China-Taiwan geopolitical tensions on the semiconductor supply chain for military technology production, evaluates key national interests and their reactions to shortages, and provides case studies for affected countries.

The paper has an overall lens of focusing on the geopolitical implications of US-China-Taiwan relations on the semiconductor industry and the role of other countries. It also upholds the sustainability focused value criterion of ensuring fair and reliable semiconductor distribution for fostering a stable and secure global supply chain. It provides future scenarios for the semiconductor industry and how past events and legislation will be either effective or ineffective in managing future supply chain issues. The paper highlights the role and need for international cooperation to address semiconductor distribution and the industry’s geopolitical implications.

In conclusion, the following research provides a comprehensive analysis of the impact of semiconductor shortages on both consumer goods and military technology production and their geopolitical implications. It provides an analysis and further recommendations of government policies and interventions to address shortages and their implications and suggests future research in the field of semiconductor geopolitics. As technology continues to advance, the importance of semiconductors will only grow, making the understanding of the global supply chain and the tensions it raises even more critical.

Disciplines

Electronic Devices and Semiconductor Manufacturing | International Business | International Relations | Operations and Supply Chain Management | Science and Technology Policy

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