January 04, 2023

Semi-protecting Semiconductors Poses a Risk to National Security

When it comes to semiconductors, protectionism is alive in the omnibus spending bill that Congress passed in December. Whether it is strengthening supply chain protections against major Chinese semiconductor companies or appropriating long-awaited domestic manufacturing incentive programs included in the CHIPS and Science Act, the United States has committed to restoring America’s edge on its shores.

As the United States makes significant investments in semiconductor manufacturing as a long-term solution, it cannot forgo its existing strengths.

Washington’s latest action signals another step toward reversing decades of globalization rooted in economics rather than national security. It recognizes that a specialized supply chain is only more cost-effective until relationships become reliance, as is the concern with Taiwan Semiconductor Manufacturing Company (TSMC), which alone produces about 50 percent of the world’s semiconductors.

Read the full article from The Hill.

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