I was told by many experts that the global chips supply chain will be challenged more in the future.
The US formed alliances with the Netherlands and Japan to stop China from exporting to them. The measures have pushed the once market-driven business to come up with contingency plans to survive the cold war like environment. There may be more similar plans in the future. At the same time, the US government will start to enforce its restrictions on US companies exporting to China, meaning that new companies may end up on top, while others may be punished for selling to China.
The full article about how the US, China, Taiwan, and Europe may navigate the industry this year can be found here.
Something that didn't make it into the story was the result of the chip tech blockade. While the high-end sector of China's chip industry suffers, the country may take a bigger role in manufacturing older- generation chips that are still widely used.
That may seem strange. The US imposed restrictions on China last year.
The US government has tried to limit the impact on advanced chips. The US rules only limit China's ability to produce chips with 14-nanometers or better, which is basically the chip-making technology introduced in the last eight years. Producing chips with older technologies isn't subject to the restrictions.
Older chips are used in a lot of ordinary objects. The Chinese government would retaliate in ways that would hurt the US if the US imposed a restriction so wide that it destroyed China's electronic manufacturing industry. Push someone into a corner and give them no way out. Woz Ahmad is a consultant and former chip industry executive.
The idea is to only cause pain in certain areas, like the most advanced technologies that could power China.
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