Tech Diplomacy Now: Is Japan beating the U.S. in the chip race?
TSMC opens its first fab in Japan and announces the start of construction on a second. Construction and production at TSMC’s Arizona fabs are lagging behind.
TABLE OF CONTENTS
Top News of the Week
The Briefing
Latest News
Technology Strategy and Policy
Artificial Intelligence
Telecommunications Networks and Infrastructure
Critical Minerals
Synthetic Biology
Quantum
Advanced Aerospace Technology
Semiconductors and Microelectronics
Energy and Climate
Opinion and Commentary
Top News of the Week – Is Japan beating the U.S. in the chip race?
In the race to expand semiconductor manufacturing and reduce vulnerabilities to China, the United States was early to identify the need to intervene in the market and provide support to industry. The passage of the CHIPS and Science Act in August 2022 signaled Washington’s commitment to this effort.
But since then, roll-out of funding and construction of new fabrication facilities in the United States has preceded at a snail’s pace compared to efforts across the Pacific in Japan.
This week, TSMC opened its first fab in Japan and announced the start of construction on a second. Production is expected to start later in the year. Construction and production at TSMC’s Arizona fabs are still lagging despite starting earlier than the Japan facilities.
Key Takeaways:
TSMC is building $40 billion worth of new microchip manufacturing facilities in north Phoenix and is expected to start high-volume production at its first fab, which is still under construction, in the first half of 2025. (Source: abc15 Arizona)
TSMC unveiled plans to begin building a new chip fabrication facility in Japan in 2022 and inaugurated the plant on Feb 24, 2024 in Japan. It will begin making smartphone and auto-related chips for Sony and Renesas by the end of this year. Prime Minister Kishida announced the same day that Japan will provide funding for a second TSMC factory in Kumamoto and that his government will "act in a speedy fashion" to support the industry with funding and easing of restrictions. (Source: Nikkei Asia)
More Background:
Investing in Leading-Edge Technology: An Update on CHIPS Act Implementation – CSIS, February 26, 2024
Who’s Who in the Semiconductor Supply Chain – The Wire China, February 25, 2024
Japan takes Taiwan's helping hand on long road to chip revival – Reuters, February 23, 2024
Japan’s semiconductor toolmakers are booming – The Economist, February 15, 2024
Japan Bets $67 Billion to Become a Global Chip Powerhouse Once Again – Bloomberg, February 20, 2024
The Briefing
If China dominates 5G and 6G, no defense system can protect America - The Hill, February 21th, 2024
Spectrum allocation is vital to U.S. national security, global competitiveness, commerce, and bridging the digital divide for communities across America.
America faces a deficit of licensed mid-band spectrum and now ranks 13th among 15 leading nations in licensed midband spectrum. Meanwhile, China has amassed four times the licensed midband spectrum as the U.S., allowing them to innovate and develop their infrastructure.
As Chairman of the Krach Institute for Tech Diplomacy at Purdue, Keith Krach and FCC Commissioner Brendan Carr write in The Hill, this imbalance poses critical strategic challenges.
If the Chinese government and its autocratic allies dominate 5G and 6G with superior spectrum infrastructure, no defense system can protect America.
"The first step must come from Congress to reauthorize the FCC’s auction authority and refill the pipeline of licensed spectrum."
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Technology Strategy and Policy
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Forging a positive vision of economic statecraft – Daleep Singh, Atlantic Council, February 22, 2024
Balancing the Ledger: Export Controls on U.S. Chip Technology to China – CSIS, February 22, 2024
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Which Ties Will Bind? Big Tech, Lessons from Ukraine, and Implications for Taiwan – CSET, February 2024
Artificial Intelligence
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Chinese smartphone vendors from Meizu to Oppo step up AI integration in their devices amid expected industry recovery in 2024 – SCMP, February 19, 2024
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Telecommunications Networks and Infrastructure
Leaked files from Chinese firm show vast international hacking effort – Washington Post, February 22, 2024
EU opens formal investigation into TikTok over possible online content breaches – Reuters, February 21, 2024
China’s Spy Agency Sees Threats Everywhere in Data Security Push – Bloomberg, February 21, 2024
Biden signs executive order to give Coast Guard added authority over maritime cyber threats – CyberScoop, February 21, 2024
TikTok to shed hundreds of jobs in Ireland – Irish Independent, February 19, 2024
Critical Minerals
Chinese money ‘willing to ride it out’ in pursuit of Canadian critical mining deals, despite Ottawa’s scrutiny – SCMP, February 27, 2024
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Roads, Copper, and Cobalt: DRC and China Strike New Mega Deal – Geopolitical Monitor, February 13, 2024
The Critical Risks of Critical Minerals – Moddy’s Analytics, February 2024
Synthetic Biology
Digital Twins to Advance Biomanufacturing – SynBioBeta, February 20, 2024
Biotech Matters: A U.S. National Security Imperative – CNAS, February 20, 2024
US rivalry with China expands to biotech. Lawmakers see a failure to compete and want to act – AP, February 19, 2024
Quantum
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Fujitsu, Hitachi, others to set up firm for new quantum computer – Nikkei Asia, February 26, 2024
The Western economy is about to be dealt a devastating blow – The Telegraph, February 25, 2024
Russian Scientists Expect A 50-Qubit Quantum Computer By End Of 2024 – Quantum Insider, February 24, 2024
Advanced Aerospace Technology
U.S. Warns Russia Not to Deploy Nuclear-Armed Space Weapon – WSJ, February 22, 2024
Musk’s SpaceX Forges Tighter Links with U.S. Spy and Military Agencies – WSJ, February 20, 2024
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Boeing’s crisis may open gap for Chinese jets to fly through – Financial Times, February 19, 2024
Why Space Force is growing more alarmed by China’s eyes in the sky – Space News, February 16, 2024
Semiconductors and Microelectronics
India’s Chip War: India can sure design, but will it ever manufacture semiconductors? – China Talk, February 27, 2024
India Chip Strategy Makes Progress With $21 Billion in Proposals – Bloomberg, February 26, 2024
U.S. export curbs on China won't extend to legacy chips: official – Nikkei Asia, February 23, 2024
Samsung Sells Down Entire ASML Stake to Expand in New Arenas – Bloomberg, February 22, 2024
Exclusive: US targets China's top chipmaking plant after Huawei Mate 60 Pro – Reuters, February 21, 2024
Dutch government says China seeks military advantage from ASML tools – Reuters, February 20, 2024
Energy and Climate
Growth in CO2 emissions leaves China likely to miss climate targets – The Guardian, February 21, 2024
Making Green Industrial Policy Work for the Climate – CSIS, February 21, 2024
How virtual power plants are shaping tomorrow’s energy system – MIT Technology Review, February 7, 2024
Opinion and Commentary
A window of opportunity for Western companies to quit Xinjiang – Peggy Hollinger, Financial Times, February 22, 2024
Silicon Valley Should Carefully Assess Its AI and Semiconductor Dealings in the Middle East – James Goodrich, CSIS, February 21, 2024
A Geopolitical Hard Landing Is All Too Possible – Jared Cohen, Foreign Policy, February 21, 2024
Kissinger and the True Meaning of Détente: Reinventing a Cold War Strategy for the Contest with China – Niall Ferguson, Foreign Affairs, February 20, 2024
NATO and EU can’t carry on like it’s peacetime – Estonian President Alar Karis, Politico, February 19, 2024
About: Tech Diplomacy Now
The Krach Institute for Tech Diplomacy at Purdue is the world’s preeminent trusted technology accelerator. As the leader of the new category of Tech Diplomacy, the Institute integrates technology expertise, Silicon Valley strategies, and foreign policy tools to build the Global Trusted Tech Network of governments, companies, organizations and individuals to accelerate the innovation and adoption of trusted technology and ensure technology advances freedom.