United Trade and Development

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AI models, robots, drones, and yes, even your refrigerator, all require semiconductors to be built and function properly. Because of this, the global semiconductor and rare earth mineral supply chains anchor virtually every sector of the modern economy, from consumer electronics and telecommunications to defense systems and energy infrastructure.

Despite these chips being so necessary for industrialization in every corner of the world, a handful of nations have monopolized the entire mining, processing, and fabrication process. As evolving technology further increases the demand for chips, this concentration has become a structural vulnerability with profound implications for global development.

Half a decade ago, the COVID-19 pandemic exposed the fragility of semiconductor manufacturing. Due to the just-in-time nature of this industry, we saw cascading shortages that cost the global economy hundreds of billions of dollars. Since then, major powers, both countries and private firms, have pursued aggressive industrial policies to reshore chip fabrication and secure mineral access. For developing nations, which rely on affordable access to these inputs for industrialization and digital inclusion, this threatens to deepen existing inequalities.

As the UN body mandated to promote inclusive trade and development, UNCTAD is uniquely positioned to address these challenges. Delegates must grapple with several competing priorities. How can nations ensure supply chain resilience without resorting to protectionism? What frameworks can guarantee equitable access for the Global South? How should the international community balance the economic sovereignty of resource-rich nations against the collective need for stable supply chains? This committee will seek cooperative solutions that safeguard both economic security and development for all.