The US has been the powerhouse in microchip manufacturing in the entire world. The numerous applications of various microchips have led to its development and further studies among different countries. Microchips are considered the brain of different technologies and gadgets that are being utilized daily among people and extends to boundaries of science and research. Furthermore, microchips have been continuously developed and improved. It is evident in the production of more powerful microchips that were released decades ago compared to the present.
Microchips nowadays are capable of more methods and with its increased capacity, a.single unit can create much impact than it used to before. Certainly, the US has created an edge among other countries in being the lead manufacturer of microchips. However, recent news has threatened their manufacturing through the introduction of China in the field.
China is still on its way to attaining their goal of being ahead of the US. Apparently, the country has had its plans and are working towards having their own manufacturing plants in China. An initial investment has been done to sustain their efforts of obtaining the technology of their own. This follows the urge to become self-sufficient since Chinese companies have begun in creating different brands of gadgets particularly phones, tablets, and drones among others.
This strategy of China imposes a challenge to the US manufacturers such as IBM who has been handling huge clients such as the US military. China has recently established its goal to prioritize this industry. Consequently, it has awakened the US with worries to become a competitor yet again with China even in microchip manufacturing. Its threats are not limited to the market revenue only but include national security and development of research.
Although China is only starting up in microchip manufacturing, forecasts say that in ten years, there will be around 20 micro chip fabrications on the country. The US currently own 76 microchip manufacturing companies but it has yet to adapt to the evolving technology. Aside from that, the US has only one new manufacturing plant being constructed.
The US has admittedly become confident in this industry and is now extending means to obtain further education and more advancements to remain competent in microchip technology. As a matter of fact, excelling in the microchip industry results to good strategy in other fields as well. Even industrial products can maximize microchips and these are at stake for the US.
Such advancements in technology are being competitive in the market now. This was not the case before and both nations have truly gone a long way to improve. Trade was present between China and the US but have been affected by the violence of Nanjing Massacre in China. Few Americans have settled business operations in China faced the challenge along with Chinese civilians. The two nations have satisfactorily redeemed their economic status that came with the violent events. Until now, the two nations have continued with their respective businesses and are the two most powerful economies in the world.
Being superior in the microchip industry corresponds to huge economic opportunities. It will be crucial for the US to remain the leader since China made its move to be involved in manufacturing microchips. The US currently hails as the largest exporter of microchips in the world dominating at 50% market worth and having revenue of more than $300 billion. Also, it provides jobs to almost 400,000 Americans with more than average salaries. While being the sole manufacturer of microchips is inevitable, the US must be able to adapt and provide more complex capabilities for manufacturers microchips to gain the advantage.