In the fourth session of John Clements Consultants’ internal EMBA class, “Making Sense of a Turbulent World: Insights for 2025,” participants examined the intricate dynamics of the global semiconductor industry. Facilitated by Harvard-certified instructor Tully Moss, the February 12 session focused on critical geopolitical topics, exploring China’s potential ventures in semiconductor technology and how the United States, as a promoter and protector of the Liberal World Order, rallies its allies and the rest of the world to counter China’s ambition to access high-tech semiconductor manufacturing—a move perceived as a threat to the balance of this order.
The USA: A Promoter and Protector of the Liberal World Order
The United States has long positioned itself as the champion of the Liberal World Order, an international system rooted in free trade, democratic governance, and global security. This role extends beyond diplomacy and military alliances to critical technological domains, such as the semiconductor industry, where U.S. leadership is seen as essential to maintaining global stability and economic competitiveness.
Semiconductors, often called the “brains” of modern technology, are indispensable to innovations in artificial intelligence (AI), quantum computing, 5G/6G networks, and advanced defense systems. They underpin everything from smartphones and medical devices to hypersonic weapons and satellite systems. As such, the U.S. views its dominance in semiconductor research, design, and manufacturing as a cornerstone of both economic prosperity and national security.
Safeguarding the Liberal World Order Through Technological Leadership
By asserting its dominance in semiconductors, the U.S. seeks to preserve the balance of power that underpins the Liberal World Order. This involves not only maintaining technological superiority but also rallying allies like Japan, South Korea, and the Netherlands to enforce coordinated export controls on China. For instance, Dutch firm ASML Holding NV—the sole supplier of extreme ultraviolet (EUV) lithography machines essential for advanced chip production—has faced pressure from both the U.S. and its own government to limit sales to Chinese companies.
Countering China’s Ambitions
China has identified semiconductors as a strategic priority under its Made in China 2025 initiative, aiming for self-sufficiency in advanced chip production by 2030. To achieve this, China has invested billions in state subsidies for domestic manufacturers and aggressively pursued access to foreign technologies through acquisitions, partnerships, and alleged intellectual property theft.
In response, the U.S. has weaponized its control over global value chains by imposing export restrictions on advanced chipmaking equipment and materials. These measures are designed to prevent China from acquiring the capabilities needed for cutting-edge semiconductor manufacturing—capabilities that could bolster its military power and disrupt global technological leadership.
Tackling Complex Questions
A particularly thought-provoking question posed by Tully during the discussion was: “What advice would you give U.S. President Trump if China wages war to claim Taiwan?”
This question sparked intense debate among participants about geopolitical strategy, international relations, and economic consequences.
This collaborative exercise encouraged critical thinking and problem-solving while fostering actionable insights into how the Philippines can navigate its role within the global semiconductor ecosystem.
The session concluded with an engaging group activity where participants were divided into teams to address thought-provoking questions related to geopolitics, economics, and innovation strategies. Each team tackled topics such as assessing the Philippines’ relationship with China, identifying funding sources for expanding electronics manufacturing and crafting plans to enhance science, technology, engineering, and mathematics (STEM) education in the country.
This interactive exercise encouraged critical thinking and collaborative problem-solving, enriching participants’ understanding of complex global issues while fostering actionable insights for strategic decision-making.
Learnings in Progress
The February 12 EMBA session underscored the multifaceted challenges facing the global semiconductor industry amid geopolitical tensions and rapid technological advancements. As China strives for self-sufficiency and semiconductor companies navigate regulatory complexities, all stakeholders must adopt innovative strategies to maintain competitiveness while addressing security concerns.
The insights gained from this session highlight the importance of strategic foresight and adaptability—a lesson that resonates across diverse industries as we continue navigating a turbulent world.
Stay Ahead in the Global Semiconductor Industry
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