201. Regaining the Digital Advantage: A Demand-Focused Strategy for US Microelectronics Competitiveness
- Author:
- Bryan Clark and Dan Patt
- Publication Date:
- 07-2021
- Content Type:
- Special Report
- Institution:
- Hudson Institute
- Abstract:
- Microprocessors are a critical element of US national infrastructure and manage the country’s energy grids, transportation systems, and telecommunications networks. Without a reliable supply of computer chips and microelectronic components, most US economic and societal activity would grind to a halt. The semiconductor manufacturing process is largely concentrated in East Asia, where manufacturers could be subjected to pressure or coercion by the People’s Republic of China. The semiconductor supply chain, and its inherent resilience and security, could be strengthened by US government investment to bring more steps of the microelectronics production and assembly process onto US shores. To guide government policies, this study proposes a four-factor framework measured from the perspective of the US microelectronics customers and industry. These factors include: resilience of continued microelectronics supplies to the US market; assurance that US microelectronics reflect their intended design and are free of security vulnerabilities; the ability of the US microelectronics industry to meet current microelectronics demand, which shapes the ecosystem; and the value added from US firms, which supports future demand.
- Topic:
- International Relations, Defense Policy, National Security, Science and Technology, Communications, Infrastructure, Cybersecurity, and Military Spending
- Political Geography:
- China, Asia, North America, and United States of America