Semiconductors are the lifeblood of our digital era, with AI taking center stage. These tiny chips are the driving power behind everything from smartphones and computers to countless other essential devices. When it comes to advanced military applications and AI-enabled weaponry, the reliance on semiconductor technology is even more profound, yet inherent with sourcing risks.

These chips power machine learning models, handle massive amounts of data, and enable the creation of autonomous systems. Without cutting-edge semiconductor technology, nations would find it challenging to compete in the AI-driven global economy and maintain strong defense capabilities.

The Age of AI: Amplifying the Stakes

Artificial intelligence is redefining industries and the national power. Countries that lead in AI development gain a decisive advantage, both economically and militarily. However, it is contingent upon access to sustainable advanced semiconductors. Foreign dependency not only limits access to these chips but also places a nation’s national security and AI aspirations at the wish of external entities.

For Example, AI-powered defense assets, such as weaponized drones and cybersecurity platforms, rely on modern semiconductor chips for real-time data processing and decision-making. If the enemy or a rival controls the supply of these chips, it could cripple the national security of any country.

What is a Semiconductor & Semiconductor Technology?

Semiconductors are materials that have electrical conductivity between that of a conductor (like copper) and an insulator (like glass). This unique property makes them essential for controlling electrical currents in various devices. Silicon is the most commonly used semiconductor material.

Semiconductor technology refers to the design and manufacture of semiconductor devices, which are the building blocks of modern electronics. These devices include transistors, diodes, and integrated circuits (ICs), which are used in everything from smartphones and computers to advanced military systems and AI applications. This technology enables the development of smaller, faster, and more efficient electronic components, driving innovation in various fields.

Top 5 Countries Producing Semiconductors:

Top 5 Countries manufacturing Semiconductors and Semiconductor related countries are as follows, With Taiwan leading as a distant topper.

1. Taiwan
2. South Korea
3. U.S.
4. Japan
5. China

Taiwan currently accounts for 68% of the global advanced foundry capacity, a share projected to decrease to 60% by 2027 as the United States ramps up its domestic production. Taiwanese giant TSMC remains the leading producer of advanced semiconductors worldwide.

U.S., Japan, South Korea and China are catching up gradually to diminish the foreign dependency in terms of the chips and semiconductor technology.

Given that the advanced semiconductor market is heavily concentrated in just five countries, with Taiwan alone accounting for 68% of the share, and China actively pursuing its domestic semiconductor ambitions, what does this imply for the defense capabilities of other nations such as Europe, Africa, India, England, and Russia?

The Solution Ahead?

For countries dependent on foreign semiconductors, particularly in the defense and AI sectors, several strategies should be considered to enhance national security:

1. Diversification: Countries should seek to diversify their semiconductor supply chains. This can be made possible through diplomatic negotiations, trade agreements, and partnerships with semiconductor-producing nations.
2. Domestic Manufacturing: Investing in domestic semiconductor manufacturing capabilities is crucial. This involves not only setting up manufacturing plants but also fostering a skilled workforce capable of operating and advancing semiconductor technologies.
3. Research and Development: Governments and private sector players should increase funding for semiconductor research and development. This could involve collaborations with academic institutions and industry leaders to innovate new semiconductor technologies and reduce reliance on foreign sources.
4. Policy Support: Policymakers can play a vital role by creating a conducive environment for semiconductor research, development, and manufacturing. Incentives, tax breaks, and subsidies can encourage investments in this sector.
5. International Cooperation: Collaborative efforts with allies can also help mitigate risks. Sharing knowledge, pooling resources, and coordinating policies on semiconductor security can strengthen global supply chains and reduce individual dependencies.

In conclusion, as our world moves further into the age of AI, the importance of semiconductors cannot be ignored. The risks associated with foreign dependency in this domain are intense and can directly impact a country’s national security. It is imperative for nations to diversify their semiconductor sources and building domestic capabilities, to protect their technological aspirations and national security in an increasingly interconnected world.