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How Asia came to dominate chipmaking and what the U.S. wants to do about it
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  • Taiwan’s TSMC and South Korea’s Samsung Electronics control more than 70% of the semiconductor manufacturing market.
  • A global semiconductor shortage and tensions with China have bolstered U.S. scrutiny of the supply chain and created a drive to regain leadership.
  • Under President Joe Biden, the U.S. is looking to bring manufacturing back to American soil and reduce reliance on a handful of chipmakers.

[Image: 106692661-1599449811224-gettyimages-1267...=740&h=416]

GUANGZHOU, China — If you talk about chipmaking, two companies usually spring to mind — Taiwan’s TSMC and South Korea’s Samsung Electronics. The two Asian firms combined control more than 70% of the semiconductor manufacturing market.

The U.S., which was once a leader, lags behind in this space after monumental shifts in the business models in the semiconductor industry.

But a global semiconductor shortage and geopolitical tensions with China have bolstered Washington’s scrutiny of the supply chain, which is concentrated in the hands of a small number of players, and has created a drive to bring manufacturing back to American soil to regain leadership.


The U.S. has earmarked billions of dollars and is reportedly looking at alliances with other nations.

Semiconductors are critical to everything from cars to the smartphones we use. And they have also been thrust into the center of U.S.-China tensions.

“One characteristic of US policy is that it has heavy emphasis on China. This has now become a national imperative to enhance self-sufficiency in semis production, accelerated by the recent chip shortages and the ‘tech war’ against China,” Bank of America said in a note published Wednesday.


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How Asia came to dominate chipmaking and what the U.S. wants to do about it - by superadmin - 04-12-2021, 03:37 PM

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