U.S. Chip-Making Boom and its Impact

Over the past 18 months, the Biden administration has hugely ramped up U.S. efforts in chip manufacturing, a scale of investment comparable to the Cold War-era space race.

This surge has outstanding implications for global technological leadership and geopolitics, with the U.S. striving to prevent China from becoming a dominant force in chip technology, crucial for everything from smartphones to smart missiles.

Currently, Taiwan produces about 22 percent of all chips and over 90 percent of the most advanced ones.

China’s territorial claims over Taiwan have sparked concerns about potential disruptions in semiconductor supply chains, which could put the U.S. at a technological disadvantage in the event of a conflict.

While new U.S. production efforts may address some of these supply chain imbalances, industry executives caution that the impact will be limited.BOne study indicated that a $50 billion investment could increase the U.S. share of global production to around 14 percent by 2030.