In a digitalized world, countries have been able to establish new factories, develop new technologies, and accelerate innovation. Machines began to dominate industrial work, data was processed at an unprecedented scale, and daily life became more efficient. However, this progress also brought new challenges. While many technological advancements created positive outcomes, they also introduced risks, competition, and vulnerabilities. The modern world is therefore shaped by both the benefits and the burdens of technological evolution.

Many people assume that the rise of digital technology began after the Cold War, but the race for technological superiority started much earlier. In the 1950s, the United States and the Soviet Union were already competing for an edge by spying on each other’s technological infrastructure. In his book Chip War, Chris Miller explains that the US and USSR were deeply engaged in semiconductor competition, and their intelligence agencies, including the KGB (Komitet Gosudarstvennoy Bezopasnosti) and the CIA (Central Intelligence Agency), played an active role in this struggle.

Today, in the 21st century, semiconductors have become pivotal to the overall development of societies. Economic and business sectors, along with political and social structures, increasingly depend on semiconductor supply chains. This dependency has grown even stronger as countries compete with their adversaries in the race for artificial intelligence.

Before discussing how this competition began, it is important to understand what a semiconductor is. A semiconductor is a material that can conduct electricity under certain conditions but can also behave as an insulator. Its electrical conductivity can be altered by adding small amounts of another material, or by changing temperature or exposure to light. This unique ability is what makes modern electronics possible, which is why semiconductors form the foundation of nearly all digital devices.

Today, every country relies on chips to power machine learning systems, artificial intelligence, and countless other technologies. Because the global system depends on semiconductor supply chains, any disruption can affect the entire international order. If the supply chain breaks, factories cannot produce goods, cars are delayed, smartphones become expensive, and industries face shutdowns. This interdependence means that when chips become scarce, trade declines, jobs disappear, and economies slow down. Since governments, banks, transport systems, and defence systems all require semiconductors, a long-term disruption can create severe instability and may even contribute to international conflict.

To gain a competitive advantage, the Soviet Union sent spies to the United States to study semiconductor research, including work taking place at Stanford University. A CIA report in 1959 stated that the United States was only two to four years ahead of the Soviets in the quality and quantity of transistors produced. Like Washington, the Kremlin recognized that transistors and integrated circuits were crucial for manufacturing, computing, and military power.

Many people today see semiconductors only as tools of modern industry, without realizing that the early race to acquire chip-making capability was driven by military objectives. After gaining knowledge of semiconductor production, the Soviet Union established its own version of Silicon Valley. The government allocated an entire city to build research centers, engineering labs, and production facilities.

Despite these efforts, the Soviet Union could not achieve lasting success, and Zelenograd ultimately failed to dominate the world through transistor chip production.

Over time, other countries followed the same path and built their semiconductor industries to compete globally. Japan, for example, emerged as a major technological power in electronics. The United States supported Japan by transferring technology and enabling it to develop into a strong capitalist economy through the backing of Japanese business elites. Allowing Japan to build a powerful electronics industry was also part of America’s Cold War strategy, aimed at strengthening its position in East Asia and the Pacific.

The purpose of tracing the evolution of the semiconductor industry is to understand how major powers can create complex global competition, particularly in the AI race. The chip war between the United States and China is a clear example.

World War I was largely a war of industrial attrition, where steel and aluminum were critical to military strength. Other wars have also been shaped by similar material and industrial realities. Today, every major power wants to win the AI race. This is one reason the United States is increasingly interested in mineral-rich countries, because China holds a strong advantage in controlling key minerals used in electronics. Taiwan is also strategically important, as it plays a central role in the global semiconductor industry.

Modern militaries, surveillance systems, and industries all depend on high-quality semiconductors to develop and deploy advanced AI technologies. For this reason, the United States has imposed restrictions on chip sales to China, while China has accelerated efforts to produce its own chips. This is how the competition continues.

Instead of fighting directly, states increasingly compete through trade bans, sanctions, technology controls, and alliance-building. In many ways, this resembles Cold War dynamics. The country that leads in artificial intelligence will likely be the one with the most advanced semiconductor manufacturing capabilities. Since technological leadership depends heavily on chips, it is no surprise that semiconductors have become a central focus of global strategy. History shows that competition over critical technologies can reshape international politics, and in extreme cases, it can even lead to conflict.

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