From sanctions to semiconductor resilience and security
By Laura Tyson, John Zysman  |  Oct 06, 2022
From sanctions to semiconductor resilience and security
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Russia’s war in Ukraine has shaken up the global status quo and given the US and its allies more incentive to work closely together in a variety of areas. Two of the most critical of these are semiconductors and advanced microchips, which are essential both economically and in terms of national security. Closer collaboration in these and other areas therefore promises to deliver benefits for decades to come.

BERKELEY - To be effective, economic sanctions depend on multilateral coordination. Freezing the Russian central bank’s holdings and kicking many Russian banks out of the SWIFT financial messaging system for international payments in response to Russia’s invasion of Ukraine are groundbreaking moves. However, such measures will be successful only if there are no (or at least very few) ways to circumvent them. Their implementation and enforcement must therefore be truly multilateral, extending beyond NATO and the transatlantic community.

The unprecedented multilateral response to Russia’s war is an opportunity for the United States and its allies to strengthen their collaboration on a wide range of shared security and economic issues. Consider the semiconductor industry, which is crucial for today’s economy and for national security. The sanctions that limit Russian access to semiconductors depend on support from TSMC in Taiwan and Samsung in South Korea, the leading global producers of both commodity chips and the more advanced chips used in many weapons systems.

Policy collaboration in the semiconductor sector can and should extend beyond sanctions. There are many promising opportunities for collaboration among the economies that form the core of today’s complex semiconductor supply chain: the US, the European Union, Japan, South Korea, Taiwan, and Israel. All are investing significant public funds and deploying industrial, research, training, trade, and cross-border investment policies to increase the capabilities of their semiconductor producers.

Multilateral policy coordination in the semiconductor industry should aim to ensure a competitive, resilient, secure, and su

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