US-China tariffs: What’s the implication for Africa’s semiconductor industry?

The 90-day pause in US-China tariffs has brought stability and predictability to the semiconductor market, with shares of semiconductor companies surging. Yen Choi, the Chief Technical Officer of Netcom Africa, highlighted the importance of building national domestic capacity as a key lesson from the trade war. He emphasized the need for countries to focus on creating new services and manufacturing capabilities to compete globally. With the semiconductor market expected to reach $1 trillion by 2030, Africa's role in the value chain is being reevaluated. While Asian countries dominate the industry, Africa's rich mineral resources like silica and rare earth materials present an opportunity for the continent to position itself as a hub in the market. The key to Africa's success lies in fostering partnerships with established semiconductor companies to build local knowledge and infrastructure. By leveraging the experience of countries like China, Africa can accelerate its growth in the semiconductor industry. The global race for dominance in AI is driving the demand for advanced chips, with companies like Nvidia at the forefront of innovation. As AI reshapes the global economy, Africa has the potential to participate in the industry by focusing on chip manufacturing and technological advancements. While competition in the AI sector intensifies, the focus should be on how AI can benefit society and improve livelihoods. Embracing AI technology can lead to faster innovation and economic growth, but precautions must be taken to address potential downsides such as data privacy concerns. Despite the challenges, the future of Africa's semiconductor industry looks promising as the continent positions itself to capitalize on the opportunities presented by the global AI race.