Europe-US alliance vital in denying easy semiconductor tech access to China: Think tank

A French think tank has called on the European leaders to work with the United States to control the semiconductor supply chain and deny China easy access to the technology that could be used in developing advanced weapons. Institut Montaigne, a Paris-based think tank, in its latest report, said that Europe plays a vital role in the global semiconductor industry, and to ensure that it remains relevant, it must unite with the US to block the easy transfer of technology to China. 

Read: China Possibly Committed 'genocide' Against Uyghurs In Xinjiang: US Commission Report

'Moment of opportunity for Europe'

Ever since the Trump administration took over the White House in 2017, it has worked to block the easy access of semiconductor technology to China through a series of sanctions and forcing American companies to apply for licenses before trading with Chinese firms. The latest report says that with the new administration taking charge in the United States, the next six months for Europe are going to be crucial and decisive. "This will be a moment of opportunity for Europe to refine its approach to supporting the semiconductor industry and set strategic objectives to thrive in an interdependent value chain," the report said.

Read: Tejas LCA Superior To China-Pakistan's JF-17; Equipped For Balakot-type Strike: IAF Chief

"In this paper, we argue that semiconductors are weak links to China’s innovation-driven development strategy. China provides massive support to its semiconductor sector to reach self-reliance and reduce its vulnerability to foreign imports. However, the international environment and the domestic obstacles faced by the country make its plans for near self-reliance excessively ambitious. But if there is anything we can learn from Chinese history when it comes to reforms and opening, it’s that we can still expect more progress as a result of strong policy guidance and determination. But if strict controls are maintained on some chokepoint technologies, China will find it extremely difficult to upgrade its industry to the level of the global leaders for IC design and foundry," the paper said. 

Read: 'Rude Interference': China Opposes US Ban On Imports, Urges To 'immediately Withdraw'

The $500 billion industry is currently dominated by the United States, Europe, Japan, Taiwan, South Korea, and China. The semiconductor industry is also playing a major role in the ongoing tech war between the United States and China. The paper suggests that the tech war between Washington and Beijing has forced China to move towards self-reliance, adding that Europe must unite with the US to ensure that the technological gap between the West and the Asian superpower remains big because the latter is known for bringing quick reforms and if it succeeds, it may use the technology to develop advanced weapons. 

Read: US Imposes New Sanction On Beijing Over South China Sea