The semicon industry won the cold war

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In Chip War - Chris Miller, there's an interesting argument regarding the role of the semiconductor industry in the post World War II times.

The US tried military control of the East Asia region, but after the defeat in Vietnam, the perspective was that communism might get a strong foothold in the area.

Many countries were impoverished, and the presence of ethnic Chinese was seem as fertile grounds for the growth of communist ideas.

In the US, on the other hand, semicon companies were looking to lower the costs of production in order to enter the consumer market. They found in Asia (starting with Hong Kong and later moving elsewhere) the best tradeoffs: low wages, low likelihood of unionizing, skilled enough labor.

The establishment of production facilities in Malaysia, Singapore, Korea and Taiwan, may have actually "won" the cold war in that region. With increased economic welfare, malcontent diminished. Moreover, the industries were completely tied to the american economy, making them dependent on the developments in electronics elsewhere.

The control of these countries happened not militarily, but purely economically. Fuelled by an industry that needed expansion and found the best conditions in this area.


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Aquiles Carattino
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