Chips , are the , important economic and military drivers of the technological planet. Yoon Suk Yeol, president of South Korea, recently stated that command in the field of microprocessor technology is crucial to a nation’s economic life ( Wall Street Journal, June 5, 2024 ). The effect on defense things is enormous. As David Goldman and I wrote in the the , Wall Street Journal , on December 23, 2018:” Silicon, never Steel, will get the Next War”.
In accordance with that philosophy, hundreds of billions of dollars are being used from federal money to grow the sector in nations like China, Taiwan, Japan, South Korea, and the US. In the US, the CHIPS Act allocated$ 50 billion to help manufacturing opportunities. These substantial commitments must be taken into account when considering the cost of a state-of-the-art, full-scale factory, which costs between$ 20 billion and$ 30 billion. And these flowers end up being outdated in a few years. A significant national endeavor requires keeping up with the cutting-edge of device manufacturing technology.
As the , original , creator of the market, the US is facing significant new competition. The first goal in the US should be to retain management in innovative product style because that authority impacts economic , growth , and the US , still , leads the world in this regard.
While the US-based economy expanded, much of the production and packaging of cards has moved elsewhere. But, the key to the value creation process, or complex high-end product development, is still largely in the US. Over 50 % of the top-tier bits are developed in the US and supported by US-based companies for marketing. This is possible because of the big design technology center in the US, which includes numerous design-focused companies, a sizable educational group of designers, continued DARPA and other federal agencies support, and the availability of venture capital funding for new modern design companies.
Fresh businesses with encouraging products are acquired by larger businesses with effective acquisition programs, giving them the resources to grow quickly. Thus, US- designed large- performance chips continue to lead the world industry the Americans ‘ , diversity and ability to quickly proceed concepts into big business products.
On the basis of its special AI-enabling systems, Nvidia’s recent history as a fresh US chip design business is a prime example of how revolutionary chip design helped it become one of the three most important companies in the world ( at about three trillion dollars ). The use of “neural networks” ( massive parallel data processing ) computing chips, which mimic the way the human brain manages data, is the new technological concept behind AI. The concept was also known for many years in medical circles, but because it required a lot of chip processing power, applying it to genuine problems was unprofitable.
Researchers in image research demonstrated the value of the technology by applying Moore’s law as financial chip concentrations increased over time. Quick programs were found in video game equipment used in computer games. But the discovery to large applications in AI came when the CEO of Nvidia, Jensen Huang,  , saw the AI programs of the Nvidia items and decided the company’s coming by concentrating all of its efforts on AI applications , while exiting different applications. With annual sales that surpass$ 100 billion, the company currently holds the position of effective monopoly in processing chips for AI.
A key underlying factor drove this success. Not the US government’s recommendations, but the work of thousands of talented technologists who work together to develop innovative ideas into valuable products. To continue maintaining essential leadership in the chip technology sector, this underlying success factor needs to be supported and encouraged.
Henry Kressel Ph. D is a technology expert with numerous ground-breaking achievements in electronic devices, an author, a trial executive, and a long-term investor in private equity.