The US Needs to Get Back in the Business of Making Chips

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The US Needs to Get Back in the Business of Making Chips
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Supply disruptions caused by the pandemic and an intensifying technology rivalry with China are prompting industry executives and policymakers to say the US must actually make, not just design, chips. (From 2021)

, which are in turn expected to unlock huge economic value and competitive advantage. “There is not a single entrepreneur here, or large company, who can do what they do without semiconductors,” Raimondo said.

The Biden administration has signaled an intent to bolster the domestic chip industry. The CHIPS for America Act, which would fund the semiconductor industry to the tune of $52 billion over five years, was passed as part of the National Defense Authorization Act; a measure to begin allocating the funds has passed the Senate and awaits action in the House.

The most advanced computer chips are made using fabrication techniques that operate at the very limit of physics, using extreme feats of engineering to craft components measuring nanometers in size .Gina Raimondo, US Secretary of Commerce The number of companies making advanced chips has shrunk in recent years, and cutting-edge manufacturing has moved east. An April report by the Semiconductor Industry Association and Boston Consulting Group found that all chips made with the most advanced methods are made in Asia—92 percent in Taiwan, the remaining 8 percent in South Korea.

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