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The Biden administration is working to transform the global chip supply chain to reduce dependence on China.
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The plan involves investing in chip-making in the US and partnering with other countries to set up factories for final assembly.
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The goal is to make the global supply chain more resilient and secure, and to blunt security concerns involving China.
The Biden administration is making a concerted effort to transform the global chip supply chain, with the goal of reducing dependence on China. The plan involves investing in chip-making in the US and partnering with other countries to set up factories for final assembly. This “chip diplomacy” aims to make the global supply chain more resilient and secure, and to blunt security concerns involving China.
The administration has attracted $395 billion in investment in semiconductor manufacturing and $405 billion in green technology and clean power. Companies from Japan, South Korea, Taiwan, and Europe are investing in US manufacturing, including a $3.8 billion factory in Indiana by South Korean chipmaker SK Hynix. The State Department is working with foreign governments to identify opportunities for additional investments overseas.
The effort is part of a broader strategy to diversify global supply chains and reduce dependence on East Asia. While China is a dominant player in chip manufacturing, the US aims to increase its share of global chip production to 14% by 2032. The administration is also working to prevent China from developing versions of American technology, and is engaging in diplomatic efforts to persuade countries to stop selling certain advanced technology to China.
