2025
- Chip War: The Fight for the World’s Most Critical Technology (by Chris Miller);
I finally picked up this book after being recommended by a colleague. Despite spending my early days in South Korea, my understanding of the chip industry was, admittedly, limited. The sheer complexity of this industry and its profound impact on (1) the evolution of technology, which has become increasingly tangible, and (2) the geopolitical tensions across the Pacific, was something I hadn’t fully appreciated until now. While the author’s tone is unapologetically America-centric, the book provided valuable insights into the intricate supply chain of the chip industry. It delves into the layered history of how business decisions by private enterprises and national security strategies by public sectors have collectively shaped the current landscape.
The second half of the book focuses heavily on the geopolitical rivalry between the U.S. and China, particularly the zero-sum approach adopted by Beijing and Washington toward capturing and containing key technologies for chip-making. I found it notable how Beijing has taken a calculated approach toward U.S. tech firms despite setbacks, such as the delayed 5G network rollout—a high-profile government priority—and Huawei’s diminished status as a second-rate tech player. This outcome underscores the challenges of China’s ambitious “one-empire” policy for the chip industry. It’s striking how Xi Jinping’s vision of a fully self-contained, advanced chip ecosystem echoes the historical ambitions of generations of Chinese empires. However, given the global chip industry’s complex and multinational supply chain—dominated by U.S. allies—this dream remains enormously expensive, with annual global capex exceeding $100 billion. Recognizing the hurdles in leading-edge chip technologies, China has recently shifted its focus to investing in “lagging-edge” chip manufacturing, aiming to increase market share in areas that don’t rely on cutting-edge capabilities. Their latest success in releasing a comparable LLM (DeepSeek) in January 2025 with subpar GPUs is particularly impressive.
The book also dedicates significant attention to the state of American chip manufacturing. It explores Intel’s efforts, under CEO Patrick Gelsinger (appointed in 2021), to close the technological gap with Samsung and TSMC and regain market share. However, based on market research I did in late 2024, these efforts have been largely unsuccessful. Revenue slowdowns and delays in fab investments—particularly in leading-edge nodes like 18A—have hindered progress. In 2024, Intel announced plans to scale back capital expenditures for 2025–2027, and subsequently engaged Goldman Sachs and Morgan Stanley to explore spinoff of its foundry services business.. Gelsinger’s resignation in December 2024, amid continued underperformance, has left significant uncertainty about Intel’s future, including the potential spinoff of IFS.
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