- Experts say semiconductors to become increasingly important asset for countries, supply chains MOSCOW Geopolitical competition in chip and semiconductor production, especially between the US and China, is on the rise as tensions heat up surrounding Taiwan and its significant role in the field. The island nation produces 60% of the world’s advanced sub-7-nanometer chips. These chips of 7 nanometers and smaller are used for artificial intelligence (AI), 5G technologies, and military weapons,