The U.S. and its allies like Taiwan, South Korea, Japan and the Netherlands have dominated chip design and manufacturing. The Biden administration is determined to stop Beijing from developing its own chip industry and thereby challenging U.S. hegemony.
It chronicles the development of microchips in Washington’s military-industrial complex, the pivotal role they played in defeating the USSR in the Cold War, and their centrality to today’s inter-imperial conflict between Washington and Beijing. Despite its systematic bias in favor of the U.S., it is essential reading for the internationalist left to understand the centrality of high tech to today’s inter-imperial rivalry between the U.S. and China.
In 1965, the Pentagon and NASA purchased over 72 percent of all chips. Thus, the U.S. state spurred the rise of the high-tech companies in Silicon Valley and the two have been tightly integrated ever since, fusing imperial policy, capitalist industry and the military.Dissatisfied with the limits of government contracts, the companies realized that they could make enormous profits in the burgeoning consumer electronics industry, which quickly became the main purchaser of chips.
The U.S. state encouraged this internationalization, including in Japan, its former enemy in the Second World War, but now its vassal in the Cold War. Washington saw the development of a Japanese electronics industry oriented toward the U.S. market as a way to bind the country, along with other Asian states, to its side against Mao’s China and the USSR.The U.S. war in Vietnam accelerated all these developments.
While this gave the U.S. the upper hand in the arms race, Washington worried that its defeat in Vietnam might lead its Asian vassals to drift into the orbit of China and the USSR. To prevent this, the U.S. fostered the continued development of the high-tech industry throughout the region.
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