In the global technological landscape, semiconductors emerge as the invisible foundation upon which the entire modern society relies. This was discussed at the Luiss Policy Observatory, event, directed by Domenico Lombardi (scientific advisor to various think tanks and a member of the general council of Aspen Italy), in collaboration with Gianclaudio Torlizzi (founder of T-Commodity and advisor to the Minister of Defense). The reported data state that the global turnover of semiconductors reached $574 billion in 2022. 75% of the global production capacity is concentrated in China and East Asia, while 100% of the production capacity for advanced semiconductors is located in Taiwan (92%) and South Korea (8%).
Strategic Importance.
Semiconductor technology is not only the beating heart of modern electronics, but has become the new battlefield between the United States and China. The Observatory underlines how this global challenge requires particular attention, considering that 75% of production capacity is concentrated in the hands of China and East Asia.
Investment Disparity.
Disparity in investment is another key criticism. While the United States invests only 0.39% of GDP in industrial policies, China injects a massive 1.73%. This difference places Italy at a disadvantage, underlining the urgency of targeted action.
Breakdown of turnover.
Compared to the global turnover, the document highlights that 14% concerns industry, another 14% is dedicated to the video game consumer, 14% to the automotive sector, 30% to the telecommunications sector, 26% to PC, and only 2% to institutions.
Action Proposal.
The Observatory proposes a national plan aimed at the development of semiconductors in the Defense sector. This initiative should pursue several key objectives:
- National Security: Ensure resilient domestic production for defense purposes by reducing dependence on external suppliers.
- Technology Self-Sufficiency: Promote technological self-sufficiency to reduce vulnerability to disruptions in global supply chains.
- Industrial Development: Stimulate the development of the domestic semiconductor industry through targeted investments, research and innovation.
- Strategic Collaborations: Promote public-private collaborations to exploit synergies and maximize development efforts.
Conclusions.
In an increasingly digitalized world, Italy must act decisively. Developing a strong national semiconductor capability is not just a competitive advantage, but a critical necessity to ensure our country’s security, technological independence, and future progress.
For further information about the event, go to link here.
