The Geopolitical Climate on the Microchip Supply Chain is Turbulent
📱The Geopolitical Climate on the Microchip Supply Chain is Turbulent.
The microchip industry plays a pivotal role in various key sectors of the global economy, from computing and telecommunications to military and healthcare. However, the COVID-19 pandemic revealed the industry's vulnerability to supply chain disruptions, leading to a severe chip shortage that persists to this day. Geopolitical tensions, particularly between the United States and China, have further exacerbated the situation, with trade disputes and export controls impacting microchip production and trade. The ongoing trade dispute between the US and China has led to the imposition of tariffs and restrictions on certain Chinese tech companies, affecting the flow of critical components and technology needed for microchip production.
Oil traders have cut their net long positions in Brent and WTI due to concerns over China's economy.