Amid Coronavirus Pandemic, U.S. and China Vie for Chipmaking Advantage

What do phones, AI, cloud servers, VR headsets, cars, and F-35 fighter jets have in common? Their performance is tied to sophisticated semiconductor chips.

Unlike other industries right now, coronavirus is not a rally ’round the flag moment for the $450 billion global chip sector.

• TSMC may build the world’s most advanced semiconductor production facility on U.S. soil, Nikkei reports. Washington has vigorously lobbied the Taiwanese chipmaking titan to build its products in the U.S for national security reasons.
• At the height of China’s COVID-19 outbreak, a major memory chip facility in Wuhan did not shut down (Nikkei again). Beijing ran the risk to keep chip development humming, showing its extreme commitment to weaning industries off foreign supplies.
• Samsung said this week that its ambitious chipmaking plans are still a go.

Though it’s a highly automated process, chipmaking isn’t totally immune from COVID-19. IDC forecasts a nearly 80% likelihood of “significant” industry revenue drops this year.