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Thursday, March 18, 2021

U.S. Must Fabricate High-End Chips Again - The Wall Street Journal

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President Joe Biden holds a semiconductor during his remarks before signing an Executive Order on the economy, Feb. 24.

Photo: Doug Mills/Zuma Press

Your editorial “The Semiconductor Shortage” (March 13) is right that government action is not needed to correct the short-term supply-demand imbalance causing the global chip shortage, but wrong that the U.S. can “prod” its way to stronger domestic semiconductor production and more secure chip supply chains in the long term. Global competitors haven’t passed the U.S. as a location for chip manufacturing by prodding. They’ve done it by funding ambitious government incentives to lure semiconductor production to their shores.

As a result, only 12% of global manufacturing is now done in the U.S., down from 37% in 1990. This trend threatens America’s semiconductor supply chains and its longstanding leadership in this strategic and foundational technology, which underpins the U.S. economy, national security and critical infrastructure.

Fortunately, with global demand for semiconductor manufacturing capacity projected to rise by 56% over the next decade, America has an historic opportunity to usher in a resurgence of domestic chip manufacturing and the innovation and job creation that would come with it. We can turn the tide, but it won’t be by sheer force of will alone. It will require the U.S. government leveling the global playing field by investing boldly in domestic chip-manufacturing incentives and advanced research.

John Neuffer

President and CEO

Semiconductor Industry Association

Washington

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March 19, 2021 at 03:21AM
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U.S. Must Fabricate High-End Chips Again - The Wall Street Journal

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