Chip War *
Fight For The World’s Most Critical Technology
Author: Chris Miller
Recommended by Tesla teammate and fellow ex-Amazonian Lukas Wolff on the RE1 train from Erkner (GigaBerlin) to Berlin Ostbahnhof
This book is so intertwined with where I was born, where I work, where I live, and where I am in time. For me it was as much of a history lesson, as a story about my heroes, as a textbook on innovation.
Before I even finished the book I was able to apply the patterns and pacing of how the chip industry innovated to my work, which in the week prior to me finishing this booked ignited a new culture of rapid iterating and pushing for improvements within a small group within our team.
Honestly I’m so backlogged on notes I just prompted ChatGPT to generate some the notes in the format I wanted:
Key Takeaways
Semiconductors as a Geopolitical Lever: The book illustrates how semiconductors not only power virtually all modern electronics but also serve as a significant geopolitical lever. Nations that lead in semiconductor technology can influence global economics and military strategies.
Innovation, R&D, and Competition: The relentless pace of innovation in the semiconductor industry is driven by fierce competition among global powers. The U.S., China, Taiwan, South Korea, and Japan are key players, each investing heavily in research and development to gain or maintain a technological edge.
Government Intervention and Support: Semiconductors are so critical that governments often intervene with funding, policies, and infrastructure support to bolster their domestic capabilities. This has included everything from subsidies and tax incentives to direct involvement in research initiatives.
Vulnerabilities of Global Supply Chains: The book stresses how the intricate and interdependent global supply chain for semiconductors is vulnerable to disruption from political tensions, trade wars, and natural disasters, making it a focal point for national security strategies.
Notable Historical Events
Invention of the Transistor (1947): The invention at Bell Labs revolutionized electronics, leading to the development of smaller, more reliable, and more efficient devices.
U.S.-Japan Semiconductor Agreement (1986): This agreement was crucial in addressing intellectual property theft and market dumping practices, reshaping global trade norms in high-tech industries.
Rise of TSMC and the Foundry Model (1987): The founding of Taiwan Semiconductor Manufacturing Company marked a significant shift with its dedicated semiconductor foundry model, which allowed companies without their own fabs to compete in the semiconductor market.
China’s "Project 909" (1990): Launched to develop its own advanced microprocessors, this marked China's ambitious entry into the semiconductor sector.
Intel's Pentium Microprocessor Launch (1993): The introduction of the Pentium microprocessor reinforced Intel’s dominance in computer processors, illustrating the importance of continual innovation.
Financial Crisis and Semiconductor Industry Impact (2008): The financial downturn led to a reevaluation of global semiconductor strategies, including consolidations and a heightened focus on supply chain robustness.
U.S. Export Restrictions to China (2019): The U.S. imposed significant export restrictions on semiconductor sales to Chinese firms like Huawei, influencing global supply chain alignments and market strategies.
Current Landscape
Technological Arms Race: The contemporary semiconductor landscape is described as an arms race, where leading-edge capabilities in semiconductor technology are directly tied to national security and economic dominance.
Impact of Geopolitical Tensions: The book discusses how rising U.S.-China tensions are reshaping the industry, from R&D collaborations to manufacturing dependencies, with significant implications for global technology strategies.
Advanced Manufacturing and Innovation: Current innovations focus on ultra-small process nodes, like 3nm and 2nm technologies, which are critical for the next generation of computing devices, including powerful AI systems and sophisticated military hardware.
