Semiconductor chips are now a major component in almost everything we use. Unless you have been too busy to follow the news lately, you probably know of the global shortage in semiconductor chips. US companies started the industry more then 50 years ago, and retained most of the design segment of the industry. The actual manufacturing of the chips was outsourced to Asia. Due to the sharp increase demand and to the prospect of competition from China --which views it as a strategic product, the United States is now interested in returning the manufacturing segment closer to home.
Both government and industry have demonstrated a strong willingness to work together in order to relaunch semiconductor manufacturing in the U.S. In Congress, the U.S. Innovation and Competition Act and the America Competes Act are expected to be reconciled and forwarded to Mr Biden for approval in a matter of days. On the industry side, announcements for major semiconductor manufacturing plants were made by a leader in the industry, Intel Corporation.
Experts call for an even broader plan in order to maintain a competitive edge over other nations. Such a plan would encourage both innovation and production, with government providing sustained incentives like minimum purchase guarantees to manufacturers, and even stock buybacks.
This video sheds some light on the scope of the current semiconductor chip shortage and its effect on other industries.
