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In a recent Washington Post Live program, historian Chris Miller discussed the global semiconductor industry and the challenges faced by the United States in retaining its position as a world leader in chip manufacturing. Miller explained that semiconductors are critical components found in everything from smartphones and computers to vehicles and data centers, and that they are also key to the modern economy. While the chip industry began in the United States, the country has lost its lead due in part to the success of Taiwan Semiconductor Manufacturing Company (TSMC) and South Korean firm Samsung. Miller noted that Taiwan produces 90% of the world’s most advanced processor chips, which poses a potential risk to the supply chain given China’s military threats to Taiwan. Miller argued that the Biden administration’s Bipartisan CHIPS Act, which provides subsidies and R&D funding to encourage domestic manufacturing of semiconductors, is an insurance policy against this potential risk. He also discussed the SEMATECH venture in the 1980s, which aimed to improve manufacturing capabilities among U.S. firms but ultimately had mixed efficacy. Miller suggested that the CHIPS Act’s focus on manufacturing incentives could make it more successful.
