The Impacts of US-China Semiconductor Decoupling
The Impacts of US-China Semiconductor Decoupling

Author(s): Zsofia Nguyen
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Semiconductor; Decoupling; Geopolitical
Summary/Abstract: The global semiconductor industry, projected to reach $588 billion in sales revenue in 2024, is at the forefront of a growing technological and economic rivalry between the US and China. As the US tightens export controls and licensing policies towards China, concerns arise about the potential decoupling of the industry between these two nations. This paper investigates the potential impacts of a complete decoupling of the semiconductor industry between the US and China on global economic growth, considering the extensive integration and complementary positions of these nations within the global semiconductor value chain. The findings suggest that a complete decoupling of the semiconductor industry between the US and China could have significant economic and innovative costs and a multilateral approach between nations is recommended to foster international collaboration, driving innovation and economic growth in the semiconductor ecosystem.

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