Why China is losing the microchip war
čas přidán 6. 02. 2023
And why the US and China are fighting over silicon in the first place.
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In October 2022, the Biden administration placed a large-scale ban on the sale of advanced semiconductor chips to China. They also implemented a series of other rules that prevents China from making these chips on their own. These chips are used in everyday technology, like our mobile phones and computers. They’re also crucial to military and intelligence systems, which is one of the main reasons they're at the center of a feud between the United States and China.
Microchips were first invented in the US in the 1950s, after which their use rapidly expanded worldwide. Since then, the supply chain for these chips has grown and spread to include countries in Europe and Asia. And while some countries have caught up to the US's edge in making these advanced chips, China still falls far behind despite multiple attempts to gain an advantage.
Watch the latest episode of Vox Atlas to understand why China is losing a new cold war with the US over microchips.
Sources and further reading:
We found this book written by Chris Miller very helpful for understanding the history of chip development in the US and the foreign policy behind its competition and feud with China:
Chip War: The Fight for the World's Most Critical Technology
www.amazon.com/Chip-War-World...
This book gave us great context on China’s efforts to acquire foreign technology:
Chinese Industrial Espionage by Anna Puglisi
www.amazon.com/Books-Anna-B-P...
Articles like this by Chien-Huei Wu helped us learn more about how much the US replies on east asian countries for successful technology:
thediplomat.com/2022/05/east-...
Reporting by Bloomberg helped us understand major IP theft cases related to semiconductor chips:
cset.georgetown.edu/article/e...
An excellent report for more detail:
Gregory Allen, CSIS www.csis.org/analysis/choking...
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Subscribe and turn on notifications 🔔 so you don't miss any videos: goo.gl/0bsAjO
In October 2022, the Biden administration placed a large-scale ban on the sale of advanced semiconductor chips to China. They also implemented a series of other rules that prevents China from making these chips on their own. These chips are used in everyday technology, like our mobile phones and computers. They’re also crucial to military and intelligence systems, which is one of the main reasons they're at the center of a feud between the United States and China.
Microchips were first invented in the US in the 1950s, after which their use rapidly expanded worldwide. Since then, the supply chain for these chips has grown and spread to include countries in Europe and Asia. And while some countries have caught up to the US's edge in making these advanced chips, China still falls far behind despite multiple attempts to gain an advantage.
Watch the latest episode of Vox Atlas to understand why China is losing a new cold war with the US over microchips.
Sources and further reading:
We found this book written by Chris Miller very helpful for understanding the history of chip development in the US and the foreign policy behind its competition and feud with China:
Chip War: The Fight for the World's Most Critical Technology
www.amazon.com/Chip-War-World...
This book gave us great context on China’s efforts to acquire foreign technology:
Chinese Industrial Espionage by Anna Puglisi
www.amazon.com/Books-Anna-B-P...
Articles like this by Chien-Huei Wu helped us learn more about how much the US replies on east asian countries for successful technology:
thediplomat.com/2022/05/east-...
Reporting by Bloomberg helped us understand major IP theft cases related to semiconductor chips:
cset.georgetown.edu/article/e...
An excellent report for more detail:
Gregory Allen, CSIS www.csis.org/analysis/choking...
Make sure you never miss behind the scenes content in the Vox Video newsletter, sign up here: vox.com/video-newsletter
Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out www.vox.com
Support Vox's reporting with a one-time or recurring contribution: vox.com/contribute-now
Shop the Vox merch store: vox.com/store
Watch our full video catalog: goo.gl/IZONyE
Follow Vox on Facebook: facebook.com/vox
Follow Vox on Twitter: twitter.com/voxdotcom
Follow Vox on TikTok: tiktok.com/@voxdotcom
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Komentáře
I'm always surprised how relatively unknown a company like ASML is to the larger audience. It has a unique key strategic position in the world that no other company has. You don't often see that and it represents both a strength and a weakness for the free western world.
ASML is unknown to you but it’s WELL KNOWN in the Chinese community. Its the industry difference s led to ignorance of certain aspects
@John Doe free by restricting and destroying enemy, yeah
@Frank but risc mass produced when
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@AntMaster True, even the logistics are a nightmare. Transporting the machines manufactured by ASML requires several cargo flights.
As a person who has spent 35 years in silicon valley's chip industry, while this video has many things right it also misses many pieces of the puzzle. Labor cost is not the primary reason chip manufacturing moved offshore. A huge factor was that chip fabs are extremely expensive and capital for building them was very expensive in the USA in the 80s when this trend really ramped up. The inflation of the 70s was a mighty contributor to that. Yes, it is true that the south Korean and Taiwanese governments were very supportive of having their engineering students pursue graduate education in the USA and such students often dominated the Semiconductor section of American Graduate schools from at least the late 1970s. In my grad school 20 of 23 Research Assistants in Semiconductor physics were from either Taiwan or S. Korea. only 2 were Americans. Taiwan and S. Korea saw the strategic value while American politicians didnt distinguish between potato chips and semiconductor chips as one politico explicitly stated.
Why tsmc is even listening to us gov in the first place, it's not like us has any power over them, it's more reversa since tsmc dictates who has power for ai
My question is, how exactly does us ban work on companies located in Denmark and Taiwan
@machaineà Hi Yes, We took advantage of Much lower capital costs in Taiwan and Korea to turn the tables on Japan. However, the capital cost difference is much more important than the labor cost advantage and was the driver. A restaurant often has 70% of its costs in labor, an auto plant might be 45%, in semiconductor manufacturing it was 10%. The cost is in the building, special equipment and building specifics. An important part of the equation was that by separating fab from the rest of the business it released a tremendous amount of creativity in design that was a very important part of recapturing market share. All developing nations start with manufacturing and low cost labor. If a country has a specific advantage in many engineers and low cost labor as was the case in Taiwan and S. Korea it is not exploitation to use their local advantages. As their labor rates increase and their economies diversify they may and have moved up the food chain and reach middle income status. Most nations fail to move above middle income status to high income status, only about 15 of 108 countries that have reached this level have managed to do this. Taiwan and S. Korea are two that have and their standards of living now exceed those of many European countries. One important factor was that these countries developed highly educated workforces over a range of expertise. They are much better positioned for the future than their European counterparts who are roadkill in technology. Only the threat of takeover by the big red machine threatens this.
I would only add "... while American Republican politicians ..." President Clinton tried to add address this issue but the Republicans were damed and determined that no Democratic President be able to do anything to helpful.
@E L Z Inflated prices. The USD is a joke that is becoming too dark. The same chips pack sold in Japan or Saudi is 4× more expensive in the US. Despite the fact these two countries are the real reason the USD is the current world trade currency through the PetroDollar agreement and the Plaza Accords Apply that on serious and more important materials and resources.
The production of this is fantastic and really shows the pressures that both countries face. Great job by the production team.
清衝唐玲玲
@Bhaskar Mehra if the y-axis is exponentially scaled, a straight line represents exponential growth. It’s not a “weird scale” and it is used often
They fired Johnny but they’re copying him now.
As someone living in Taiwan, I can safely say, our chip manufacturing is one of the main reasons as to why China and US has not gone to full blown war. The stakes are just too high if we were to be destroyed in between.
hahaha, Taiwan no 1. Have you also thought about the reason without a war is because both have nuclear weapon that could destroy each other?
As someone who works as a scientific glassblower for the semiconductor industry, it's really interesting to see the geopolitical impact of some of the components we use. We just make the glass and send it off, without really knowing how the apparatuses are used. This is the first time I've seen one of our customers mentioned outside of work.
@Chibdibs First guy starts off saying that China's only mistake was in endangering US position of power. All the other countries teaming up with the US against China makes sense as they don't want to lose their position either and he ends by saying we'll see whoever wins the war. The other comments are about migrant Chinese and how views have been changing to more individualism and less socialism
Really wish I knew what they were saying. Google translate is not doing me any favors.
Actually, before ASML became the exclusive supplier of advanced lithography machines, Canon and Nikon held significant market share. For quite a few years Japan and China had a fairly good economic relationship, and the Japanese companies assisted China in building their own lithography machines. China actually managed to put together machines capable of 90nm nodes by SMEE, though I don't think it's actually certified for production use yet. However, both the US and Japanese government had noticed this and are vowing to put a stop to it, making any advancements by SMEE very challenging.
"making any advancements by SMEE very challenging" don't you love capitalism? if humanity didn't have all these trade secrets (nationalism & capitalism) and patent system we would be so much better when we work together and everyone has access to all knowledge to improve
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@SFPhiloInternational relations are always changing
There's also a small matter of the Senkaku Islands that traditionally belong to Japan, but the Chinese claim is theirs. Every time their Coast Guards meet up the Chinese get all riled up and burning Japanese flags or smashing up Chinese owned Japanese restaurants.
@Kamban Allwinner still produce Soc on 28 and 22 nm for example. I'm sure they still produce older Socs as well. hiding in kiosk, fridges tvs etc etc.
Some extra info: Zeiss, a german company that produces lenses is also the only company with the most advanced lenses which asml uses for their machines.
@D.O.G you sound like the amish people.
@JuriKcenturies ! I ride on my donkey to work and we dry the corn and the chilies on the fast lane - because there are no cars !
germany is backwarded in IT sector. decades behind usa, south korea, taiwan.
@Elaine Munro Germany and the Netherlands are allies - they would never go to war
@BlackPrince fusion does “work” it’s just not efficient. There have been some successful fusion experiments in laboratories, such as the Joint European Torus (JET) in the UK, the Tokamak Fusion Test Reactor (TFTR) in the US, and the International Thermonuclear Experimental Reactor (ITER), currently under construction in France. These experiments have shown that fusion is possible and can produce energy, but we are still working on developing practical fusion reactors that can produce more energy than they consume.
This was an absolute great video
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Very nice
Wow
Very nice 👍👍👍
Bien
This is the sickest most informative ten minutes of my six academic years in medical school. Vox, you’ve outdone yourselves 💪🏼
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@Jorge Madrazzo this was pretty informative, and remember that one, this profession generally spends 8 years learning and two, this person cares enough to be concerned for how much education he got. This implies he studies on his own as well.
@Mike Kleanthous good for you that you have gone through medical school. That is a great accomplishment. I still find it difficult to believe that there is no 10 minute time span you have learned more just impossible. With all the studying and the stress you have been through
The following does not apply to all of you. Who has been belittling you and causing you fears of incompetence and failure, as to project this onto me? I’ve researched dopamine, the other neurotransmitters you mentioned, and all fields of surgery, without a specialization as of now. The comment was not an hyperbole, the scale of implications and depth in time the video went to in 10 minutes, is the most of any lecture I saw for ten minutes, and delivered so much on the subject. I spent more than a thousand 10-minutes chunks of studying. So back to my question, who has been belittling you and causing you fears of incompetence and failure, as to project this onto me?
People getting mad to an hyperbole.
Great video. You managed to breakdown the complexity of this whole situation into easy to understand pieces for all.
One of the other key points as to why the US is so protective is their understanding of Chinese technological development. China doesn’t have the same innovation priorities that the US does so their ability to grow organically is impaired. However they have remarkable abilities in breaking down, analyzing, and replicating preexisting components and tech. Thus getting blueprints or samples of cutting edge technology can enable them to catapult the the forefront.
@D.O.G Yes, stealing something that the US does not have.
@Sweetie Jason international law for instance 😂
Every now and then Vox just makes me fall in love with this world and its geopolitics, loved it
ok
*Top 10 Key Market Players in Semiconductor Manufacturing Equipment* Tokyo Electron limited (Japan) LAM research corporation (US) ASML (Netherlands) Applied Materials, Inc. ( US) KLA Corporation (US) SCREEN Holdings Co., Ltd. ( Japan) Teradyne US) Advantest (Japan) Hitachi High-Tech Corporation (Japan) Plasma-Therm (US)
"this world and its geopolitics" seen through the "vox" vision.😂
I’ve been watching this happen and trying to stay up to date with this, you’ve done a pretty great job in showing how truly reliant and nearly immutable the world is on this supply chain, and the problems ahead
very good high level overview of the situation! There are alternative technologies in play but this is a really good starting point for anyone interested in the geopolitics of chips.
Enjoyed every minute of watching this and learned a whole LOT. Thanks Vox
I wrote my thesis on this very topic about 1 1/2 years ago and it is always great to see this topic get brought up more and more
Great video. It enlightened me to the reasons behind the increase of taxes that the US had implemented and why they were going after so many China tech companies.
Brilliant video. Thanks. While it may seem like the "chip war" is between China and the US allies, it's actually pretty 2 dimensional. US allies (Japan, South Korea and Taiwan) too are competing among themselves to out-pace each other. No one wants to end up in a situation where it can be casted out easily. While TSMC (of Taiwan) is building new plants in both America and Japan, their foreign investments do not involve most advanced technology, keeping the US' incentive to defend Taiwan from China intact. Both Japan and South Korea has announced their own set of lucrative subsidies to poach companies from each other countries. They are also worried about losing market share in China and China hampering the supply chain of raw materials if it feels cornered. This is just the beginning.
@朴俊光Park joon Kwang And china's economic growth rate is declining
@朴俊光Park joon Kwang China's nuclear bomb and space station technology are all developed thanks to russia 😂 No country can help china this time because russia is also a country that lacks semiconductor technology
An insightful examination of the geopolitics surrounding the semiconductor industry. The concept of "silicon sovereignty" sheds light on the growing trend of techno-nationalism in the industry. The power dynamics between different players in the digiconomy and the geopolitical landscape are having a significant impact on the microchip landscape. It is crucial that we understand these intricacies in order to fully grasp the implications of this important topic.
This is the one of the best videos I have seen recently on the chip war, easy to understand with in-depth analysis. Thank you.
Loved this video, extremely well maid, informative and entertaining! Great work.
The chip war is having alot of negative consequences for the US as well. China being the largest consumer of chips being cut off means a disastrous hit to US chipmaker profits resulting in mass layoffs and less money for R&D. Combined with the impending end of Moores law due to chip features becoming literally smaller than atoms. all indications are that china will catch up. This isn't like the race between the USSR because the USSR never had a commercial tech sector and wasn't the global exporter of electronics. The sheer demand within china for semiconductors means chinese chip companies are set to grow rapidly due to a captive market imposed by the US. Wheras the US will have to subsidies its chip sector for the hundreds of billions in lost sales.
@zzfunny soul 哈哈哈哈
@Viva Las Vegas china already does alot of that.
Greatly explained! Issue has been going on for years and this is the first time im seeing good coverage of underlying geopolitical issues
Always love the videos in this series. Excellent job again!
What most people do not realize about high performance chips, is that the circuits are etched by acid, and the more compact the circuits are (higher density), the stronger the acid has to be to etch the circuits. This leads to a higher chance of explosive results as the transistor size decreases. This is why there are fewer HP chip makers and if a production line burns up, it has a ripple effect in the supply chain. the entire 2020 shortage of microprocessors (still) impacting the car industry is an example.
No etched by acid and no explosive results in making the chip. Light and coating are used in chip production. Low power and in a clean room. To do a 5-nanometer circuit line only takes a little energy to print it.
There are a lot of chemicals used for manufacturing. Any kind of acid is no more dangerous than others. Also chip etching is more about building it layer by layer like a Lego model.
Brilliant, very well done. Explained succinctly the key players, the potential theft that led to export controls.
Great video. You managed to breakdown the complexity of this whole situation🙂🙂
Good information but you sort of glosses over why companies started outsourcing to TSMC - it was about a change of business model from companies designing and building chips to just designing and outsourcing the building to a third party. These third parties could scale operations much better. Also they had heavy subsidies from the government of Taiwan - a point that is really important to note.
@QQ2019 "Lawmakers within the island nation have reportedly passed additional legislation that will allow local chipmakers to turn up to 25 percent of their annual research and development expenses into tax credits in a move said to be aimed at ensuring Taiwan's continued leadership in semiconductor manufacturing." - TSMC spends something like $20-30B in R&D so yes, there are massive tax credits which are subsidies
The change of business model was the outcome, but not the reason why companies started outsourcing to TSMC. The reason was simple, it was about driving down costs as most companies simply lacked the ressources to invest into their own fabs and each new node. Having a neutral manufacturing company that specializes in this task and works with all design companies maximizes the utilitzation of the fabs and spreads their large sunken costs over many shoulders, driving down the costs for all. On the other hand, there are some downsides to this approach which get covered in the video, e.g. geopolitics and the hard dependancy on a single supplier that are a strategic risk for the design companies. We have seen that in the pandemic, too. TSMC raised prises and was not able to keep up with demand while international trade got more restrictive over night.
That's NOT true! Subsidies from the government to TSMC only in very early days when TSMC got established.
TSMC has been perfectly described as the most important company most people have never heard of.
For modern time it is for sure
@tooltalk Depends on how you define recently, 1992 is when they we're solidified as the world's top chip manufacturer and 82 is when they were founded.
That's b/c they weren't really that important until very recently. The chip business is fairly dynamic -- there was a time when Intel mattered so much, but it's so behind now.
@Rai2M Them to i was referring to the Taiwan company that makes 90% of all advanced semiconductors and 60% of most other kinds.
This kind of videos are the reason why I subscribed to Vox. More of these please!
The video a little bit simplified the chip industry. It's much more complicated. Taiwan and some other countries, they own only production, manufacturing chip plants, whereas US and some European countries, they have technologies and design.
a lot of western optoelectronic companies have moved away from China after the mid 2000's because of IP infringement. Unlike complex high-density CPU's on silicon, optoelectronic tech involves a lot of III-V semiconductor epitaxy and bespoke fab processes - once those are know it's a lot easier to replicate and sell them for a significantly cheaper price. In the UK a lot these industries were lost over the last couple decades. With regards to warfare we're constantly on the cusp of losing our steel industry. I guess paying profits to shareholders is a lot more important than state security.
*Top 10 Key Market Players in Semiconductor Manufacturing Equipment* Tokyo Electron limited (Japan) LAM Research Corporation (US) ASML (Netherlands) Applied Materials, Inc. ( US) KLA Corporation (US) SCREEN Holdings Co., Ltd. ( Japan) Teradyne US) Advantest (Japan) Hitachi High-Tech Corporation (Japan) Plasma-Therm (US)
Maybe some people are so used to them making money in other’s market and keeping per-unit high profit to themselves, as is done in Africa or other underdeveloped countries. Many cooperations between IP owners and China companies sometimes local government, are stated upfront clearly that in exchange of the access to China market, these IP owners agree to share more tech details so China people can learn and improve. Latest example is Tesla in Shanghai, China. China gets the tech, Tesla gets cheap land, labor and high quality of craft. Pure business. Ultimately IP owners are making more money. And high tech is brought to more population at low cost to elevate the living standard of the entire world, when IP owners come and say: China steals (and I can make more - No, you cannot). The entire microchip market today won’t exist if China didn’t participate. ASML, TSMC and the US investors behind them will lose money without China. It can be this way for another few decades when each contributes together, but US chooses to weaponize microchip and China has to develop its own.
@William Robinson oh yeah sorry, edited it
@mynameisjoejeans I see, thank you!
@mynameisjoejeans I think youre replying to the wrong person mate lol
You manage to break down the complexity of the whole situation into parts that are easy for all to understand.good video 👍
You forgot to mention we are reaching the physical limitations when it comes to chip design, we are reaching the physical limitation on semiconductor technology and would need some breakthrough in physics to go even smaller
People in the west seems to have forgotten that China only opened its door to the outside world in 1979, then followed by the Tianamen 1989. Then a lot of technologies blocked from going to China. However, most of you forgot how fast China developed and especially technologically. China has its own space station, longest high speed rail, aircraft carriers and many others. Of course, the west is afraid cos it could see how fast China has been doing things, and make computers so cheap. This is just a fear of a rising China. China isn't picking that fight. The West is.
and they're losing, despite what Vox says. A professor in China already came up with a promising new technology that is going to make ASMLs tech pretty much obsolete
I used to work with both companies even before they were as big as these days. The Taiwanese and the Dutch holds the key in todays high tech and should use their strength to stop all the madness going on these days.
@Mujtaba Alam you mean failure if uncle sam to find the WoMD?
@Mujtaba Alam not sure how you make the direct connection between chips and south china sea? well, maybe you work for one of the thinktanks in dc.
You mean China's expansion efforts in the south china sea?
Before 2004, the United States led the world in semiconductor technology, and foundries had to pay IBM's technology license fees. But in 2004, TSMC took the lead in developing 0.13-micron copper process technology ahead of IBM, ushering in the era of Taiwan's semiconductor technology leading the world. In 2014, IBM withdrew from the foundry business, and TSMC considered buying IBM's fab in New York State. However, even though IBM's technology has lagged behind Taiwan by a decade, the US Department of Defense and IBM, still worried about the already fading American technology influx into Taiwan, rejected the deal. High-tech semiconductor technology is the result of Taiwan's efforts to develop, and now the United States claims to "bring back" semiconductor production to the United States.
As long as the Chinese aren’t getting it I am ok with it
TSMC was grounded by Philips (NXP) and the Taiwanese. Philips sold its part.
do you know who grounded TSMC? Right Philips from the Netherlands (now NXP). with the Taiwanese.
Ya
Excellent production team to export a highly informative video to show mass people what exactly going on between these two giants.
Thanks for spending the time to create and share this content awareness
Never had I understood the chip issue in just 10 min that clearly awesome production Vox - thanks for that
Robert Noyce received the patent for the first computer chip and planar chip technology. It is shocking that this very important fact is ignored. Also, Intel was co-founded by Robert Noyce and Bob Moore.
@purplerain thanks for that correction
Gordon* Moore
ASML is the most important company in the world most people have never heard of.
INTELLLLLLL
*Top 10 Key Market Players in Semiconductor Manufacturing Equipment* Tokyo Electron limited (Japan) LAM Research Corporation (US) ASML (Netherlands) Applied Materials, Inc. ( US) KLA Corporation (US) SCREEN Holdings Co., Ltd. ( Japan) Teradyne US) Advantest (Japan) Hitachi High-Tech Corporation (Japan) Plasma-Therm (US)
ASML & TSMC & 3 US chip design software and equipment companies
This is not a war of technology, but an economy. Sure, making a 1nm chip is impressive, it will be achieved much faster by TSMC than China will do. But to make such chips cheap, consumer-available and sustainable, that's a whole new game. It's only a matter of a few years, how long China will achieve chips like 3nm, then all advantages of the Chinese economy will prevail to the benefit of China. I also like how, China is catching up playing alone when all others together try to beat her.
@Tiago Gomes no they couldn't. I have a new invention called a bicycle
So well made, simple and very informative. thank you!
Because of this amazing video, I went out and bought the book "Chip Wars." It's an excellent read.
This Cold War between the 2 is a major reason why no one should be reliant on either party when it comes to semi conductors. As an Indian, I’d very much like to use our technology brains and become self reliant on this front in the next 20 years.
@ADR china is a developed country that was supported by a superpower called ussr and china wasn't looted by the europeans like india was. also i never said that was a criteria it was just a example.
everyone stands up for their own interest. For China and all other developing countries the current intellectual properties are not quite fair. So it's more of a struggle for market and technology as well as the interpretation of rules.
I LOVED the production of this video. Simply superb. You keep pushing the barriers Vox, you are at the forefront of Moore’s Law.
The chip war is not in the narrow sense about security. It is about the United States maintaining its technological superiority over a rival which in turn affects its economic and military supremacy.
Russia lags well behind the USA in electronics but still retains the world's second most powerful military machine title, China doesn't even come close to. Missing the forest for the tree.😂
@al bundy Poverty and war equal protest, domestic instability and anti government hate, get used to it.
military supremacy = security
@James Carter Of course, lol.
Its not three anymore - the SW for making Chips is Synopsys (SNPS), Cadence (CDNS) and MENtor ( which is now part of Siemens. There are actually a lot of smaller IC design tool vendors from time to time like Magma .
Why don't we see content like this more often from Vox... Brilliant, absolutely brilliant 👍
Very, very beautifully illustrated. This is a world we don't want to live in, though. We'll be looking back at the optimism, cooperation and, consequentially, wealth created in the 90s and beyond as a golden age of human development.
1:17 the things circled are the inputs and outputs which would connect to the pinouts or wires. the transistors are actually made of the middle parts where p-type and n-type doped silicon makes bridged connections based on the electron flow.
Yes! Also the chip that Biden is holding at 5:21 is nowhere near 114B transistors. The 114B they are refering to is most probably the m1 ultra, which is way larger than that chip, which looks like a small memory module.
Glad you pointed this out. I hope Vox sees this and corrects it.
IMO, asml, tsmc, Amd, and Nvidia are all really great companies to invest in. They're literally in most tech out there. Underrated stocks still imo. Got lucky and bought them when they were low, so easier for me to tout about them. But I still believe in them so I recommend them long term. Not financial advice, just my opinion haha.
You’ve missed one important part: industry’s efforts to thwart intellectual property theft by foreign adversaries. They’ve increased, quite a bit.
One thing that was missed in this very well made video is the semiconductor materials (in addition to design software, equipment, manufacturing, and assembly), an area that Japan dominates. When Korea and Japan was not in good terms Japan needed only stop selling photo-resist, a key material used in the lithography step, to Samsung, for Korea to bow.
And without samsung, all japanese semiconductor materials companies would go bankrupt
Photoresist has never been banned from export and korea has never bowed 😂 Study more chinese
and Abe failed a big time. Korea within a year started manufacturing the material
How beautifully crafted this video is. "Pure Informative Art"..... Thanks Vox
Amazing video, now I've got a better understanding of why the USA is so openly willing to protect Taiwan in the case if China decides to make a move.
@D.O.G why would it be? Realpolitik. US has limited resources and various interests, thus we don’t have the resources to stop every moral wrong, we must prioritize especially when facing a superpower like China
Oh you mean protecting another country from China being occupied after Tibet is not a reason enough ?
As a person from Taiwan, never thought TSMC was that big
@Sarawak's Sky Dweller : yeah, that's b/c they weren't that important until a few years ago. Other companies will come along replace them in importance in a few years.
*Top 10 Key Market Players in Semiconductor Manufacturing Equipment* Tokyo Electron limited (Japan) LAM Research Corporation (US) ASML (Netherlands) Applied Materials, Inc. ( US) KLA Corporation (US) SCREEN Holdings Co., Ltd. ( Japan) Teradyne (US) Advantest (Japan) Hitachi High-Tech Corporation (Japan) Plasma-Therm (US)
哈哈哈哈，真能装，你们整天护国神山，护国神山的，还装不知道呢，哈哈哈哈~~~
@baodeus1 The only reason to live is to get things you want, not just what you need, unless you truly enjoy just having what you need, which is very few people, if any. You can't change your wants, which forces everyone to suffer at least a little, more so if their more poor, which is why "money can't buy happiness" is wrong in 99% of cases.
@VIBaJ 16 There is need and there is want. It doesn't take a lot to meet your need (if I'm hungry, I just need to eat something and I'm satisfied). Wants comes from need, just more of it (I don't just want to eat, I want to eat excessively, I want to eat only certain things, I want Michelin star). Then if I don't get what I want, I suffer. It is worth it to suffer over things that you don't need (want in this case)?
Excellent review of the Chip industry. Good research and presentation.
VOX's videos keep getting better :)
Did anyone else notice that they circled the I/O of the semiconductors and not the transistors themselves? The transistors are in the middle.
Yes, can tell the video maker doesn’t have much technical background
@Dylan J *facepalm* It's a logarithmic scale, as can be seen by the Y axis markings.
They also showed Moore's law using a linear graph..
I have seen a video of ASML and the factory in the Netherlands. The technology is really sophisticated and complex. If anything were to happen to that singular place and/or TSMC, there's a good chance we can regress technologically as a human race because the technology is not being shared and is monopolized. Really scary if you think about it.
Yes we. Could quickly have the Chinese have access to it ! Hahahaha 😂
@Artixe _ Very true, I'm just saying if anything were to happen to that company what the implications are.
ASML is a Dutch company. It's not just their factory there lol.
Even if China can gain influence over Taiwan that doesn’t mean dominance in chip manufacturing, as necessary software and machinery to produce such chips are only made in the us and Netherlands. The Chinese governments best move would be to invest significantly into paying software engineer graduates competitive rates that keeps them from wanting to move to the us or other countries
@ShadowThruNight Technological innovation has nothing to do with being able to "speak your mind". Your whole comment seems very one-dimensional and myopic.
poor job of both, they will be
*Top 10 Key Market Players in Semiconductor Manufacturing Equipment* Tokyo Electron limited (Japan) LAM Research Corporation (US) ASML (Netherlands) Applied Materials, Inc. ( US) KLA Corporation (US) SCREEN Holdings Co., Ltd. ( Japan) Teradyne US) Advantest (Japan) Hitachi High-Tech Corporation (Japan) Plasma-Therm (US)
This is what many of us looking for. Really informative & helpful...thanks for sharing such as awesome stuff...... 👍
Very interesting video. One of Vox's best works
What is circled at 1:13 as "transistors" are not transistors! They are the metal pin contacts. The transistors are in the center of the wafer, formed by the metal layers and polysilicon (slightly darker blue) region.
Seems like the competition over chips is very much ongoing, and the US relying on Taiwan so strongly is a pretty big source of weakness in its supply chain...
US is ahead but they're not winning, china can catch up eventually and something that isn't mentioned in the video is that Moore's law is slowing down because we're reaching a limit. Semiconductors are getting close to atomic sizes and reaching a cap on how small we can make them. This is why quantum computers are being researched so much now due to how their memory capacity functions thanks to qubit superpositions allowing for more states than just 0 and 1
@Lee I don't think it was actually proven to be possible yet. Do you have any links to it being used? I believe a possible way it could work was invented. But I don't remember it having been actually invented.
@TheBlackWaltz room-temperature quantum computer has already been invented last year. it will only become more and more consumer friendly in the next couple of years.
Quantum computers don't even work like that. They're not an evolution of classical computing. They work completely differently. They're going to be great at lots of things. But far worse at a lot of other things as well. There's also the problem of scale and temperature. It likely won't be possible for a long time to get their scale down to replacing chips, even if they could replace them on ability.
@Antonio Usai Indeed they don't work, but they want their pension! On top of that there is aging infrastructure, it was build to bump the GDP and will require maintenance that costs money but won't help with the GDP.
The more ban on China, the better for them. It encourages them to develop their own tech. If anyone has read some news from CCP and actually been to China, their government has already acknowledged the danger of being dependent on US. As an example, Japan’s sudden economic collapse in the late 20th century would be mainly due to US involvement. China can literally self sustain without really caring about others whereas US still needs foreign exports and not to mention (exploitation of third world+ China) to sustain most of its material needs. At last, I’m not sure what tricks CCP has in its sleeves, and thus I won’t really comment on how much impact losing ASML impacts them.
@jigil jigil Since you are trying to disprove what I have said, show me all the peer-reviewed relevant data of what China's exports and imports consists of as well as the relevant data of what US, EU's exports and imports consist of. You should look at the statistics about China's factories for each product versus EU or US's the factories for each product. It gives a clearer insight about which country is more reliant on exports than which given that we know the essential needs consist of : food, sheltering, clothing, and electricity. So, we would look for any product related to those 4 factors, and which country/group of countries is more reliant than which within any of the 4 categories. Other items are optional. If you are unable to provide statistics that satisfy those criteria, it's a wise decision to stop discussing. Leave it or take it.
@Rosen Ryan It's worse than that. China can't even make decent "low end" chips like analog components. If they could, they would still have to dump them in low end markets basically near cost because nobody in the West would buy them. Japan found that out the hard way, even though they have decent product in that segment of the market.
It will take them years to develop their own tech and by the time they have something halfway decent, they will be waaaay behind the curve. People who steal other people’s ideas will always be behind
Magnifique, la concurrence actuellement est axée sur le développement de chipsets pour l'AI et le 5G . Merci pour cette vidéo explicative
According to Vox, Tokyo Electrom of Japan can sell chip manufacturer machines to China.
The chip supply chain is very fragile. Years ago there was an earthquake in Taiwan, the prices of RAM memory jumped tenfold
Everything we (the United States) does to try to restrict Chinese development merely supplies the motivation and inspiration for the Chinese to build their own, but better. Our fear of losing our number one spot, which has actually already happened, leads us into the nastiest kind of vicious non-cooperation. In our new world coming, we will focus on the welfare of the people and cooperation to that end. Money and power necessarily doom us.
*I was born in Taiwan.* *The value of Taiwan is more than just the '“silicon shield”, but also the strategic location on the pacific.* With the harbour on the east coast of Taiwan, PLA are able to deploy nuclear submarines that capable of conducting another “Pearl harbour attack”. With the control of Taiwan strait, China will be able to shut down the cargo supply from western world to Japan or Korea. Sure, the chips may be a reason why US are trying to prevent the war from happening, but the position of the island is the actual common interest that urges Japan and US to intimidate China from invading Taiwan.
@Gao Da 高达 無症狀 asymptomatic
症状？希望你没有病hhh
It is no coincidence that people residing in countries and territories bordering Mainland China generally disapprove of Beijing. After all, media is a vital part of modern conflict, and on that front, the US has an undisputed monopoly. But make no mistake, any secondary conflicts manufactured, be it ideological, territorial or emotional serve purely as catalysts to the one and only conflict for control and profit, the outcome of which is the sole concern of the long term strategies of the US government. Not democracy, nor alliance, nor the prosperity and safety of the people of Taiwan. Unquestionable control and incontestable profit.
I honestly think one side holding a technology is scary, no matter if it’s us or them. Like a wise man once said, nuclear weapon keeps us safe because both side have them
Semiconductor is something that better be open and not monopolized by a single company
I like the fact people act this affects them in anyway shape or form, like wow the US being the dominant one surely will change your life👍
Chris Miller's book ( Chip War ) covers this very well also 👍
What a documentary VOX! Totally commendable 👌
The Taiwan story is something people really need to pay more attention to. Learned a lot in this one.
@Sam McClaim Yeah, like less than 2%, and yet more than 60% of people in Taiwan recognize themselves as only Taiwanese not chinese at all how do you say about that?
@Sam McClaim Some see themselves as Japanese too, what is your point?
@SickAssApe Taiwanese see themselves as Chinese so what's the problem. Why fall into "divide and rule" trap.
Although I already knew most of this information, I still like how you guys broke everything down I learned a few things good job👏🏼😂😂
The circles you drew around the transistors at 1:15 are the bonding pads for the chip interconnect and not the transistors. Please fix this error.
Not once did you mention that ASML is a fully Dutch company located near Eindhoven and thus the EU even holds the USA in a chokehold
it's important to remember that ASML has the 2nd largest R&D center in CT; light-source/laser R&D in San Diego (via its US subsidiary Cymer); and software R&D in Silicon Valley. The US DOE also provided funding abd basic research in the 90's. I think the fact that the US favored ASML over its Japanese competitors like Nikon and Canon also helped the company to stand out.
Many of ASML factories and research centers are located in the US though. Wilton, San Diego etc.
Perhaps the 'EU' likes to look in a mirror and flatter itself that it holds the US in a chokehold, but it really doesn't. The main customers for ASML are mentioned in the video, all US allies. If ASML were to step out of line, it would be a very painful mistake, and if they focused on China at any point, the Dutch would soon become aware of which side their bread is buttered. ASML is at the top of its game for sure, but the rules are written by the US.
It was obvious on the map though
Microchip is harder to make than nukes and ICBMs and rockets, it represents the pinnacle of human technology, Intel alone has 10,000+ engineers in a single department doing R&D on chips
But it seems that supersonic missiles are harder to make for the US compared to micropchips.ñ
Thanks! I was missing this key part of the story to better understand the whole picture
This was a great and very informative video! I read a bit about the whole chip supply chain process but this video tied everything together nicely.
Those last sentences are scary enough because neutral countries around the world too are being forced to pick a side whether they should establish a secure relationship with China or the US both economically and politically. Which is quite sad tbh
We start seeing south east asian countries were forced to pick China recently because ASEAN is the largest trading partners of China.
@穿靴子的outman ☠️
The chip industry is literally central to every bit of invention and innovation for the western world. No one can compete with Europe South Korea, Japan, Taiwan, Australia, UK and the US on this it would literally be impossible
China has already made tremendous strides towards its own EUV machine capable of sub 10nm. ASML has also resumed selling EUV machines again to China and many other countries.
Trump wasn't perfect bad was great on this stuff. He'd point out that the Netherlands still isn't even paying it's NATO obligations and say he'd pull us out over this as he'd wanted to do with the Germans and the gas deal he was absolutely right about and the Germans were laughing then remember? The entire Ukraine problem would have been avoided had they listened to him.
Investing is a stepping stone to success ... you are absolutely right expecting the government to provide a huge waste of time.
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За 10 минут вся история развития чипов 👍
More of this, Vox! 👏
Vox never miss on a video.
German company Zeiss is another vital step in the chain that provides ASML with the high precision lithography lenses needed to make lithography machines
We should seriously invest in diversifying supply chains around the world, not to benefit the few, but the many.
Great sound design on top of a very informative video with great graphics!
You can ban them from advance chips but you can't stop them from development. Sooner or later they will have to develop because it's also matter survival for them as a country.
and? We want them to struggle. If it would have taken them 10 years before now it would take 15-20. Time is money and gives the US time to invest and R&D new tech to stay on top.
A lot of countries keep surviving w/o developing chips.
I laugh. 4 transistors. 16 transistors. Today I'm working on a chip with over 16 billion transistors. During the first Cold War, a U.S. film captured the spirit of that Cold War on both sides with the title, "What If They Gave A War and Nobody Came?" For this one, we hope and pray that it stays cold while manufacturing more ammunition.
Excellent video! Very informative
If anything, this signals to non-allies that the US doesn't want to deal with them as equals The US may have the lead now and will likely maintain it for the percieved future, but they can't do so forever. Asian and African countries are on the rise and they will remember who had been trying to hold them back