"Reworking global supply chains so that they are less dependent on East Asia will be a challenge.
East Asian chip factories offer more cutting-edge technology, a larger pool of talented engineers and lower costs than American factories are projected to.
Taiwan produces more than 60 percent of the world’s chips and nearly all of the most advanced chips, which are used in computers, smartphones and other devices.
By comparison, the U.S. semiconductor industry could face a shortage of up to 90,000 workers over the next few years, according to several estimates.
Governments in China, Taiwan, South Korea and elsewhere are also aggressively subsidizing their own chips industries.
Still, billions of dollars of new U.S. investment are expected to somewhat shift global supply chains. The U.S. share of global chip manufacturing is projected to rise to 14 percent by 2032, from 10 percent today, according to a May report from the Semiconductor Industry Association and the Boston Consulting Group.
Some administration officials have engaged in a more coercive form of chip diplomacy to prevent China from developing versions of American technology. That approach has focused on persuading a handful of countries — Japan and the Netherlands, in particular — to stop companies from selling some chip-making tools to China.
Alan Estevez, who leads the bureau within the Commerce Department in charge of export controls, visited Japan and the Netherlands last month to try to persuade the countries to block companies there from selling certain advanced technology to China." [1]
It is great that Biden is finishing his political work this year. More of such management, and we all might end up in a new stone age in the best case scenario.
1. U.S. Creates High-Tech Global Supply Chains to Blunt Risks Tied to China. Wong, Edward; Swanson, Ana. New York Times (Online) New York Times Company. Jul 8, 2024.
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