Some estimates conclude there are more semiconductor transistors on Earth today than there are leaves on trees.
Not long ago they were called "computer chips". They have proliferated. Silicon microelectronic chips are still in computers. They're also in wristwatches, automobiles, microwave ovens, cell-phones, many etc.
In the past the U.S. had an influential presence in semiconductor manufacturing and markets.
But as market demand grows U.S. semiconductor manufacturing market share has dwindled.
" ... the production of semiconductors has steadily declined in the west, with East Asia emerging as the main manufacturing hub. Within the Asia Pacific region alone, China, Japan, South Korea, and Taiwan together have become the “Big 4” semiconductor players, holding four of the top six spots by overall semiconductor revenue and each has several global semiconductor giants. The region is also the world’s biggest market for semiconductors, accounting for 60% of global semiconductor sales, within which China alone accounts for over 30%.
The US’s share of global semiconductor manufacturing capacity fell from 37% in 1990 to just 12% last year, while Europe saw a 35 percentage points decline in the period, to 9%. China’s mainland expanded its share from almost nothing to 15%, a figure that is expected to rise to 24% in the next decade, according to analysts.:
https://techwireasia.com/2021/03/is-the-world-too-dependent-on-asias-semiconductor-industry/
While the $economic impact on US is incentive enough, there's more.
Silicon computer chips also have direct U.S. military / war-fighting applications, "smart-bombs" for obvious example.
We (both captains of U.S. industry, and members of congress [MOC]) know it's a problem.
On its own initiative Intel is building more chip-making capacity. But that's slow, & costly.
Is it time for U.S. federal government to get involved? If so, to do what? Add tariffs on foreign made chips, incentive to domestic chip makers to expand capacity?
Take Apple for an instance, a US$2 trillion company and the world’s biggest buyer of semiconductors spending US$58 billion annually, was forced to delay the launch of the much-hyped iPhone 12 by two months last year due to the shortage. Ford recently canceled shifts at two car plants and said profits could be hit by up to US$2.5 billion this year due to chip shortages, while Nissan is idling output at plants in Mexico and the US General Motors said it could face a US$2 billion profit hit.
techwireasia.com
What should Biden do?
What will you do?
Not long ago they were called "computer chips". They have proliferated. Silicon microelectronic chips are still in computers. They're also in wristwatches, automobiles, microwave ovens, cell-phones, many etc.
In the past the U.S. had an influential presence in semiconductor manufacturing and markets.
But as market demand grows U.S. semiconductor manufacturing market share has dwindled.
" ... the production of semiconductors has steadily declined in the west, with East Asia emerging as the main manufacturing hub. Within the Asia Pacific region alone, China, Japan, South Korea, and Taiwan together have become the “Big 4” semiconductor players, holding four of the top six spots by overall semiconductor revenue and each has several global semiconductor giants. The region is also the world’s biggest market for semiconductors, accounting for 60% of global semiconductor sales, within which China alone accounts for over 30%.
The US’s share of global semiconductor manufacturing capacity fell from 37% in 1990 to just 12% last year, while Europe saw a 35 percentage points decline in the period, to 9%. China’s mainland expanded its share from almost nothing to 15%, a figure that is expected to rise to 24% in the next decade, according to analysts.:
https://techwireasia.com/2021/03/is-the-world-too-dependent-on-asias-semiconductor-industry/
While the $economic impact on US is incentive enough, there's more.
Silicon computer chips also have direct U.S. military / war-fighting applications, "smart-bombs" for obvious example.
We (both captains of U.S. industry, and members of congress [MOC]) know it's a problem.
On its own initiative Intel is building more chip-making capacity. But that's slow, & costly.
Is it time for U.S. federal government to get involved? If so, to do what? Add tariffs on foreign made chips, incentive to domestic chip makers to expand capacity?
How does this problem affect you?
Take Apple for an instance, a US$2 trillion company and the world’s biggest buyer of semiconductors spending US$58 billion annually, was forced to delay the launch of the much-hyped iPhone 12 by two months last year due to the shortage. Ford recently canceled shifts at two car plants and said profits could be hit by up to US$2.5 billion this year due to chip shortages, while Nissan is idling output at plants in Mexico and the US General Motors said it could face a US$2 billion profit hit.
Is the world too dependent on Asia’s semiconductor industry?
What started as a temporary delay in supplies within the semiconductor industry, turned into an ongoing crisis as production is back to normal, thus causing a new surge in demand.
techwireasia.com
What should Biden do?
What will you do?