The Chip Race and Chip Trade Flows: Reshaping the Semiconductor Ecosystem Across Major Chip-Making Countries

30 May 2025, Version 1
This content is an early or alternative research output and has not been peer-reviewed at the time of posting.

Abstract

The pandemic-era semiconductor shortages and U.S. export controls against China have intensified the technological rivalry between major powerhouses, transforming it into a global chip race. This paper analyzes how the chip race affects the semiconductor ecosystem by examining changes in multilateral chip trade flows among the five countries with the largest chip-making capacities: the United States, Taiwan, South Korea, Japan, and China. The findings reveal visible shifts in chip trade flows but limited structural change in the global semiconductor ecosystem. Despite some disruptions, both the U.S. and China have maintained their positions. China remains the largest chip importer and exporter by value, offsetting losses by redirecting trade to Vietnam and India. Singapore has benefited significantly, while Vietnam has emerged as a rising player. This data-driven assessment offers rare empirical insight into the evolving chip race, contributing to testing theoretical assumptions and informing future industrial policy and international relations.

Keywords

Chip race
Semiconductor industry
Technological rivalry
US-China relations
Chip trade flows
Chip-making capacities
Semiconductor import
Semiconductor export

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