Highlights
In the 20th century, oil determined the course of the world’s economy and politics, but now, AI and semiconductor chips are emerging as the new power. Investment, markets, and the strategies of nations are rapidly revolving around computing power. Let us understand this in detail.
…………………………
There was a time when global power meant control over oil wells, pipelines, and shipping lanes. Countries that possessed oil determined the course of the global economy and geopolitics. But now, the picture is changing rapidly. In the 21st century, this power is gradually shifting toward AI and semiconductor chips. Today, from the world’s largest tech companies to governments, everyone is involved in the race for computing power and chips. This is why economies like the US, Taiwan, and South Korea are now emerging as the centers of this new technological power.
………
Prime Minister Narendra Modi also pointed toward this change, stating that in the 20th century, countries that had oil possessed prosperity and power. In the 21st century, that same power is hidden in small chips. In October 2025, Nvidia became the world’s first company with a market value of 5 trillion dollars. At first glance, this was considered a major stock market achievement, but its implications are much greater than that. In the last century, nations that controlled oil influenced the world’s economy and politics. Now, AI chips and computing infrastructure are seen playing that very same role.
………..
Chips are the True Foundation of the AI World
…………………………………………………………………..
Today, semiconductor chips are working behind every ChatGPT search, every AI-generated image, and every large language model. The more money invested in AI, the higher the demand for chips will rise. This is why semiconductors are no longer just a tech product, but have become the fundamental infrastructure of the AI economy.
……………
Money is Indicating Which Way the World is Heading
……………………………………………………………………..
The growth of the semiconductor industry tells the story of this change itself. According to the Semiconductor Industry Association (SIA), global semiconductor sales in 2025 grew by 25.6% to reach a record 791.7 billion dollars. The industry is now very close to touching the 1 trillion dollar mark in 2026. According to SIA President and CEO John Neuffer, “Semiconductors are the foundation of almost all modern technology.” But the real story is not just the earnings of chip companies; the real story is that chips are now changing the stock market, investments, and the economic power of nations.
………
Why is Investors’ Preference Changing ?
………………………………………………………………….
Market cap does not indicate the size of a country’s economy, but rather shows where investors see the most potential for future earnings and growth. Today, global investment is rapidly moving toward countries that play a key role in the AI supply chain. According to Bloomberg, Taiwan’s total market capitalization increased to 4.95 trillion dollars in 2026, making it the world’s fifth-largest equity market after the US, China, Japan, and Hong Kong. The biggest reason behind this surge was the 46% rise in TSMC’s shares, which benefited the most from the AI boom. The situation is such that TSMC alone now constitutes about 42% of Taiwan’s benchmark stock index. It is one of the most concentrated major stock markets in the world.
………
With a population of only 23 million, Taiwan has now become one of the most strategic economies in the world due to TSMC and has become a vital center of the AI supply chain.
TSMC manufactures the world’s most advanced chips and supplies them to companies like Nvidia, Apple, AMD, and Qualcomm. The massive investment in the AI sector eventually reaches its factories.
According to Bloomberg, in view of TSMC’s growing influence, Taiwan has relaxed investment rules, which, according to JP Morgan, could bring in more than 6 billion dollars in new investment.
…………
Taiwan’s chip industry is now called a “Silicon Shield” because its vital role in the global semiconductor supply chain makes it strategically extremely important.
……..
South Korea is also reaping major benefits from the AI boom. According to the SIA, sales of memory chips grew by 34.8% to reach 223.1 billion dollars in 2025, while according to Bloomberg, thanks to Samsung Electronics and SK Hynix, the country’s market cap has reached nearly 5 trillion dollars.
For America, AI means Nvidia.
Until about ten years ago, Nvidia was known as a company that made gaming graphics cards. But today, Nvidia stands at the center of the entire AI economy. Companies like Microsoft, Amazon, Google, and Meta are spending billions of dollars on AI infrastructure every year, and a large portion of this money eventually ends up in Nvidia’s systems. Therefore, Nvidia’s 5 trillion dollar valuation is not just a success story for one company. It is an indication that in the near future, computing power is going to be among the world’s most important economic resources.
…….
The Anxiety has not Diminished
……………………………………………………..
With growing technology, the format of indicators that strengthen the economy has changed. Previously, countries were worried about oil wells, pipelines, and shipping routes. Now, the concern is whether they have sufficient computing power and chip supply or not. For this reason, governments around the world are spending billions of dollars on domestic chip manufacturing. The US is increasing investment through the CHIPS Act. Europe has prepared its semiconductor strategy. Japan is investing heavily in advanced manufacturing. India is also running incentive schemes for semiconductor manufacturing, chip packaging, and AI infrastructure so that it can increase its share in the entire value chain.
……….
If the 20th century can be called the century of oil, it would perhaps not be wrong, but the 21st century can be called the century of computing and AI. Just as the race to capture oil in the last century determined the world’s politics and economy, similarly, control over computing power and the semiconductor supply chain can become the benchmark for new global power in this century. It is possible that in the coming years, the world’s biggest wars may not be fought for oil, but for chips and computing power.
……………..
Conceptual Visualization
…………………………………………………
Description: A futuristic global map where traditional oil pipelines and tankers are fading into the background, while vibrant, glowing microchip architectures (resembling digital networks) span across continents like the US, Taiwan, South Korea, and India, symbolizing the new power grid of the 21st century.
About the Author
