Eric Schmidt: "US Faces AI Leadership Crisis Due to High Taiwan Dependence in Semiconductors"

Publication of the National Security Commission on Artificial Intelligence (NSCAI) Report

▲Eric Schmidt, former Google Chairman [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Former Google Chairman Eric Schmidt criticized that the United States is at risk of losing its world-leading position in the field of artificial intelligence (AI) due to excessive dependence on Taiwanese companies in the semiconductor sector.

According to major foreign media on the 1st (local time), the 'National Security Commission on AI (NSCAI),' chaired by former Chairman Schmidt, concluded after two years of research that the U.S. must establish a flexible domestic foundation for semiconductor design and manufacturing.

Former Chairman Schmidt said, "We are losing our position in ultra-small electronics supplied to our companies and military due to dependence on Taiwan."

Bob Work, former Deputy Secretary of Defense and NSCAI Vice Chairman, also expressed a negative stance, saying, "Because China has a hostile relationship with Taiwan, the U.S.'s high dependence on Taiwan is inevitably risky."

Vice Chairman Work added, "The U.S. currently enjoys a two-generation lead over China in the semiconductor market, but to maintain this superiority, swift action is necessary," and assessed, "We are 110 miles away from the risk of falling two generations behind while trying to stay two generations ahead." He further stated, "If China absorbs Taiwan, it will truly threaten our competitiveness."

Last week, U.S. President Joe Biden issued an executive order related to supply chains including semiconductors, batteries, and rare earth elements, directing a review of vulnerabilities in domestic supply chains over the next 100 days.

The 756-page research report prepared by NSCAI warned that while AI will benefit the U.S. and consumers, there is also a risk of 'strategic vulnerabilities' emerging due to China's advanced technology investments.

The report pointed out, "In the AI field, U.S. private companies and universities demonstrate leadership, but the U.S. is still less prepared for the coming era." It especially noted, "China is a strong and ambitious competitor with excellent talent," explaining that "China challenges the U.S.'s technological leadership and military superiority."

Furthermore, NSCAI warned in the report, "China is already technically more advanced in some applications and is expected to surpass the U.S. as a global AI powerhouse within the next decade."

Accordingly, NSCAI emphasized that the U.S. government must significantly increase funding for AI research.

It also recommended establishing a 'Technology Competitiveness Commission' directly under the White House, similar to the National Security Council established after World War II. NSCAI stressed the need to cultivate more domestic talent. According to the report, the number of U.S.-born students pursuing AI doctoral programs has not increased over the past 30 years.

The report also pointed out that allowing China to win the AI competition would pose a geopolitical threat and could be used as 'technological authoritarianism' to pressure other countries.

Andrew Moore, NSCAI member and head of Google Cloud AI, cited 'surveillance' technology as an example of the Chinese threat, saying, "We are frankly concerned about China conducting experiments with very totalitarian technologies."