Advanced Nations' Tightening of AI Chip Export Controls and Developing Nations' Race to Build Alternative Chips

One autumn morning, the Suwol Nation Alliance shut its door with a very stern face.

What was locked, however, was not the door but a cutting-edge computing chip. The Suwol Nation Alliance declared it would not export what was called the Hanbit Chip beyond its borders. The reason was simple: it was too good.

“This chip is ours to use,” the Alliance representative said, unfolding documents. Those documents were packed with export control regulations. There were so many clauses, it was said, that reading them put you to sleep.

The news spread in a flash. The Cheongryong Nation was the first to react.

“We were going to build it anyway,” Cheongryong Nation engineers said. They were already drawing circuit diagrams on laptops left open before bed. In 2023 alone, the Cheongryong Nation poured over KRW 30 trillion into semiconductor R&D. They had decided to forge their own key in front of the locked door.

The Gongjak Nation followed suit, but its approach differed. Gongjak Nation emphasized “our own distinctive design.” The announcement slides featured a chip with a grand name. Half of the components listed inside were still foreign-made, but on the day of the announcement, everyone applauded.

The Hanbit Chip itself watched this all unfold in silence. It was true that export controls had sent its value soaring. Rumors circulated that black-market prices exceeded official prices threefold.

“I enjoy the love,” the Hanbit Chip murmured to itself, “but is it really necessary to go this far?”

The next month, the Suwol Nation Alliance held another meeting. This time, there were even more clauses. The Cheongryong Nation and Gongjak Nation drew their blueprints a little faster. No one yet knew who would open the first new door.

This article is for information only and is not investment advice.