TY - JOUR
T1 - Geopolitical dynamics and the microchip value chain: navigating the United States-China rivalry
AU - Bartesaghi Hierro, Ignacio Martín
AU - Melgar Alassio, Natalia
PY - 2025/12/18
Y1 - 2025/12/18
N2 - This article examines the deepening strategic rivalry between the United States (US) and China through the lens of international political economy (IPE) and geoeconomics, focusing on the semiconductor sector as a critical arena of technological and geopolitical competition. By integrating insights from structural power, weaponized interdependence, and global value chain (GVC) governance, the study analyzes how the transition from the 2018 trade war to a comprehensive technology war reconfigured state strategies, supply-chain dependencies, and patterns of industrial policy. Special attention is given to Taiwan, whose dominance in advanced microchip fabrication simultaneously enhances its strategic value and exposes systemic vulnerabilities in the global semiconductor ecosystem. The article combines policy analysis, trade data, and regulatory measures to assess how export controls, subsidies, and alliance-building have reshaped the competitive landscape. A Strengths, Weaknesses, Opportunities and Threats (SWOT) and Threats, Opportunities, Weaknesses, and Strengths (TOWS) frameworks are applied to evaluate the industry under conditions of heightened geopolitical tension. The findings show that despite efforts at decoupling, the US and China remain bound by dense technological and production interdependencies, reinforcing strategic dilemmas for governments and firms. The article concludes with a set of policy recommendations aimed at improving resilience, promoting constructive engagement, and reducing systemic risks within the semiconductor supply chain.
AB - This article examines the deepening strategic rivalry between the United States (US) and China through the lens of international political economy (IPE) and geoeconomics, focusing on the semiconductor sector as a critical arena of technological and geopolitical competition. By integrating insights from structural power, weaponized interdependence, and global value chain (GVC) governance, the study analyzes how the transition from the 2018 trade war to a comprehensive technology war reconfigured state strategies, supply-chain dependencies, and patterns of industrial policy. Special attention is given to Taiwan, whose dominance in advanced microchip fabrication simultaneously enhances its strategic value and exposes systemic vulnerabilities in the global semiconductor ecosystem. The article combines policy analysis, trade data, and regulatory measures to assess how export controls, subsidies, and alliance-building have reshaped the competitive landscape. A Strengths, Weaknesses, Opportunities and Threats (SWOT) and Threats, Opportunities, Weaknesses, and Strengths (TOWS) frameworks are applied to evaluate the industry under conditions of heightened geopolitical tension. The findings show that despite efforts at decoupling, the US and China remain bound by dense technological and production interdependencies, reinforcing strategic dilemmas for governments and firms. The article concludes with a set of policy recommendations aimed at improving resilience, promoting constructive engagement, and reducing systemic risks within the semiconductor supply chain.
U2 - 10.69895/g2dav916
DO - 10.69895/g2dav916
M3 - Artículo
SN - 2953-7495
VL - 2
SP - 1
EP - 22
JO - TONGDAO. Revista Latinoamericana de Estudios de China Contemporánea
JF - TONGDAO. Revista Latinoamericana de Estudios de China Contemporánea
IS - 2
M1 - 1
ER -