The Struggle for New Global Hegemony, Semiconductors, and Nearshoring

Abstract

Today, we are witnessing geopolitical and geoeconomic struggles, primarily for market niche conquests. The international order being attempted to be preserved is being dismantled by the same actors who created it. Old international players fail to grasp that the world in the 21st century is different, and they seek to contain what is already uncontrollable: China is the world’s second-largest economic power and will likely become the first within a decade. The Covid-19 pandemic, gas shortages stemming from the blockade of Russia, and other factors have led to a reduction in semiconductor and microchip production as companies halted their operations. Supply chain disruptions have affected not only Asia, Europe, and the Americas but also Africa. All of this has contributed to a tipping point that prompted reflection from the US, Europe, Japan, South Korea, etc., leading to a new power struggle aimed at containing China. Thus, a new battle for global hegemony emerges. The shift in geographic production of semiconductors and chips is particularly significant for Mexico because the nearshoring of value chain activities may present opportunities and promote greater regionalization of the chain in North America.