Biden Is Touting a Multibillion-Dollar Chip Factory in Arizona as a Way to Save the Global Economy from China Threats

The bottom line: Despite being the largest foreign direct investment in US history, the Arizona plants are unlikely to protect the US economy from the risk of a Chinese invasion of Taiwan.

"The new fabs won't do much in the way of reducing the economic risk of a Taiwan contingency," Martijn Rasser, a former CIA officer who is now a security and technology expert at the Center for a New American Security, told Insider. "All of TSMC's most advanced capabilities, vital knowhow, and the bulk of its fabrication capacity remain on the island."

To truly achieve supply chain resilience, Rasser says, the US must only boost production further, but needs similar investments in all areas of the chips supply chain, from raw materials to packaging.

Read the full article and more from Business Insider.