Semiconductors: The tiny but mighty foundation powering the digital economy
Book of the Month - Book #3
The outcome of World War II was determined by the side that possessed superior steel power, primarily influenced by industrial production. Nevertheless, it became increasingly apparent that the requirement for computing capabilities was the need of the hour. Consequently, funds began to pour into projects aimed at generating greater computational power. Mechanical gears were progressively substituted with vacuum tubes, utilizing now electrical charges. Next, In a span of seventy-five years, the remarkable rise of semiconductor chips has been nothing short of extraordinary. These chips now power a wide range of products, from automobiles and toys to even nuclear technology. The author of the book is an expert in Russian and Chinese history who also teaches it. He delves into the global oligopoly that dominates the manufacturing of these chips, as well as the precise tools and foundries needed for their production, which operate at an almost atomic level of precision.
Ultimately, "Chip War" presents a compelling argument, highlighting how the chip industry now shapes both the structure of the global economy and the balance of geopolitical power.
Imagine a long time ago, there was a special kind of technology called semiconductor chips that didn't exist. These chips are like little brains that make things work, like cars, toys, and even some powerful machines. They are really important! At first, making these chips was very difficult and required a lot of hard work. People had to do everything by hand, and it took a long time to make each chip. In the United States, where the chips were first made, the workers needed to be paid a lot of money for their hard work. This made it expensive to make the chips in the U.S.
So, the people who made the chips started looking for other places to make them where the workers would be paid less money. They found Japan, a country where they could make the chips at a lower cost. But then something happened—Japan also started making a lot of chips and became really good at it! They became big competitors. To stay in the game, the chip makers had to find other countries where the workers would be paid even less money. They found South Korea and Taiwan, where making chips was cheaper. These countries also became competitors in making chips.
Meanwhile, in America, the big tech companies like Apple wanted to focus on what they were best at—creating new and innovative things. They didn't want to spend too much time and money-making chips themselves. Instead, they decided to send the chip production to these other countries, like South Korea and Taiwan. This way, they could concentrate on designing cool gadgets like iPhones and iPads, while letting others make the chips for them. So, even though Apple uses a lot of chips in their devices, they don't actually make the chips themselves. They rely on other countries to make them, while they focus on making awesome products that we love.
In the end, these chips became really important because they not only power many things, we use every day but also affect how the world economy works and who has power in the world. It's a fascinating story about how technology and business intertwine!