Why we need a national strategy to prevent computer chip shortages

With production so heavily concentrated in Asia, supply-chain resilience is threatened by mounting geopolitical tensions with China. A top priority should be to expand the competitive production capabilities of American companies and foreign companies located in the U.S.

Fortunately, there are promising private sector plans to do this. Intel, for example, has recommitted to domestic production of leading-edge chips, and both Taiwan Semiconductor and Samsung have announced plans to build production facilities in the U.S. The EU is also committed to expanding its own semiconductor production, which, if successful, would make the global system more competitive, resilient and secure.

Beyond maintaining the chip supply, leading-edge foundries play a critical role in driving competition and innovation throughout the supply system. The state of foundry technology tells design companies what can be built now and what future capabilities they can expect.