Monday, November 15, 2021

Digital Iron Curtain Begins to Separate U.S.-China Chip Supply Chains

 By J. Sharpe Smith Inside Towers Technology Editor In light of the integrated circuit board (known as a chip) shortage, the chip industry is busy trying to fix its supply chain issues, but the technology struggle has undertones of the greater geopolitical situation, according to IEEE Spectrum. U.S. companies dominate the design of the chips, while the chip-making supply chain is controlled by companies in Asia, namely Taiwan Semiconductor Manufacturing Co. (TSMC). The United States is now going back into manufacturing and China is getting into design, so “fixing the supply chain” looks a lot more like the latest battleground between the East and the West.

The U.S. government is committing billions of dollars to bringing chip manufacturing back to this country, including $52 billion in the U.S. Innovation and Competition Act. “The United States, alarmed at China's campaign to bring Taiwan under its control, has also begun an ambitious program to 'reshore' its semiconductor manufacturing after allowing much of it to migrate to Taiwan,” IEEE Spectrum said. Continue Reading

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