Geopolitical tensions threaten semiconductor supply chains across Europe and Asia.
The recent seizure of the chipmaker Nexperia by the Dutch government underscores the escalating geopolitical tensions surrounding semiconductor supply chains, particularly as nations vie for technological supremacy. This incident highlights the strategic importance of semiconductors amid a broader conflict involving China, Russia, and Western powers, where economic security has become paramount. With the West perceiving a decline in its technological dominance, recent U.S. sanctions on Chinese firms and China’s subsequent export restrictions on rare earth materials further intensify these competitive dynamics. This situation reflects a critical juncture in securing key technological assets essential for national security and economic stability, particularly for countries like India, which are navigating their own defense and tech strategies in the face of global challenges.