The Chip War: Why Microchips Are the New Oil
More Valuable Than Gold
You might think microchips are just for computers, but you are wrong. A modern car has over 1,500 chips. Your refrigerator, your bank card, and even your passport rely on them. Without chips, the modern world stops instantly.
These tiny wafers are the brain of the modern economy.
The Taiwan Dilemma
Here is the scary part: 90% of the world’s most advanced chips are made in one place—Taiwan. Specifically, by one company called TSMC.
If TSMC stops production (due to war or natural disaster), the global economy would crash harder than it did during the Great Depression. This is why the US and China are in a tense standoff over the island.
The 3 Fronts of the War
The US Embargo
The USA has banned companies from selling advanced chip-making equipment to China. Their goal? To stop China’s military from developing advanced AI weapons.
China’s Response
China is pouring billions into its own chip industry (SMIC & Huawei) to become independent. They are also restricting the export of rare earth metals needed to make chips.
The European & US Pivot
Realizing the danger of relying on Taiwan, the US is building massive chip factories in Arizona, and Germany is doing the same. They want to “bring the chips home.”
Oil vs. Microchips: A Comparison
| Feature | Oil (The Old Power) 🛢️ | Microchips (The New Power) 💾 |
|---|---|---|
| Primary Use | Energy & Transportation | Computing & Intelligence |
| Source | Natural Resources (Ground) | Extreme Engineering (Labs) |
| Key Players | Saudi Arabia, Russia, USA | Taiwan, USA, Netherlands, China |
| Strategic Value | Keeping the lights on | Building the future (AI) |
How Are Chips Made?
It is the most complex manufacturing process in human history. See inside a chip factory.
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