The Biden administration is embarking on a bold new strategy to reshape the global chip supply chain, with plans to increase semiconductor production in the United States and partner with other countries for final assembly. This initiative, dubbed “chip diplomacy,” aims to enhance economic prosperity and national security while reducing reliance on East Asian manufacturing hubs.
President Biden recently secured billions of dollars in investments from South Korea for chip-making in the U.S., signaling a major step towards achieving these goals. The administration is also working with countries like Costa Rica, Vietnam, and Kenya to establish new supply chains and ensure long-term sustainability.
The push for more domestic chip production is part of a broader effort to bolster key industries such as green energy technology, electric vehicles, and clean power generation. By attracting significant investments in semiconductor manufacturing and green technology, the U.S. aims to diversify and strengthen its supply chains while mitigating security risks associated with Chinese dominance in these sectors.
While challenges remain, including workforce shortages and competition from heavily subsidized industries in East Asia, the administration is optimistic about the potential impact of its initiatives. By 2032, the U.S. share of global chip manufacturing is projected to increase to 14 percent, up from 10 percent today.
Through a combination of diplomatic efforts, strategic partnerships, and targeted investments, the Biden administration is laying the groundwork for a more resilient and competitive chip supply chain. By engaging with countries around the world and leveraging their expertise and resources, the U.S. aims to secure its position as a leader in semiconductor technology and drive innovation in key industries for years to come.
