The fight to dominate the world's most critical technology
How semiconductors became a battleground for global supremacy
Chip War: The Fight for the World's Most Critical Technology
By Chris Miller
Grade: 95
“Amazing, informational read, packed with a treasure trove of information on the history of the microchip industry. It gave me an understanding and an appreciation for Silicon Valley, Texas Instruments, and the role of Taiwan in chip production.”
I wrote that paragraph in my notepad immediately upon reading Chip War, which was my last book of 2023.
The book is a comprehensive and insightful exploration into the world of semiconductors, a technology that has become a cornerstone of modern society. Miller, an accomplished academic with a background in international history, particularly focused on economic and business history, skillfully navigates the complex and often secretive world of semiconductor technology.
And in doing so, he shares some nuggets that had my mouth agape:
The chip industry was founded in the US, in Texas and in Silicon Valley.
Taiwan is the world leader in production of the most advanced microchips,
The machines used to make the most advanced microchips come from the Netherlands,
The machines chips cost $100 - $150 million a piece, has hundreds of thousands of components, including the flattest mirrors ever invented and has explosions inside of them that are 40 times hotter than the surface of the sun,
Intel fumbled the bag by turning down an opportunity to provide the chips for the iPhone, and
China pays more to export chips than oil.
I used dozens of sticky notes to annotate the book. It was a deep-dive on the microchip industry, one that anyone interested in tech will find fascinating and illuminating.
Why it’s important: Miller wrote the book to shed light on the critical importance of microchips in today's global economy and politics. He often refers to semiconductors as the "new oil”—which is what piqued my interest when he was interviewed on Scott Galloway’s podcast—highlighting their essential role in almost all modern technology, from smartphones to military equipment. This comparison emphasizes the strategic value of chips, just as oil was in the 20th century, shaping economic and geopolitical landscapes.
History of the chip industry
The book dives deep into the history and development of the semiconductor industry, with a particular focus on the roles played by Texas Instruments and Silicon Valley. Texas Instruments, known for inventing the integrated circuit, is portrayed as a pioneering force in the early days of the semiconductor industry.
Their innovations laid the groundwork for the subsequent explosion of technology and business models that would come to define Silicon Valley. Silicon Valley itself, as depicted in the book, is more than a geographical location; it's a symbol of innovation and the epicenter of the semiconductor revolution, driving forward advancements in technology and business practices that have shaped the industry.
What’s more: Miller doesn't shy away from discussing the complexities and challenges inherent in microchip manufacturing. He details the expensive, intricate, and highly specialized processes required to produce these tiny yet powerful components. In fact, the book illustrates how the evolution of chip technology has led to an arms race in manufacturing capabilities, requiring massive investments in research, development, and state-of-the-art fabrication facilities.
These investments are colossal, often running into billions of dollars, with no guarantee of success due to the rapid pace of technological change and fierce competition. (He shares tantalizing stories about the competition among the major players in chip manufacturing and design.)
Why we should all care: A significant part of the book is dedicated to discussing the geopolitical implications of semiconductor manufacturing, especially concerning China's growing capabilities and ambitions in this sector. Miller stresses the importance of continued investment and innovation in the West to prevent China from dominating this critical technology area.
He argues that maintaining a competitive edge in semiconductor technology is not just about economic dominance but also about national security and global power dynamics.
If you enjoy a book full of details and dripping with historical context, Chip War is for you. It’s certainly one of the most thoroughly researched, in-depth books you’ll read on any topic. After reading the book, I see microchips, the microchip industry, Texas Instruments, and Silicon Valley through an entirely different lens. So will all readers of Chip War.