For the last two years, the US and China have been working toward self-sufficiency in microchips – a critical industry currently dominated by Taiwanese and South Korean firms. But self-sufficiency will elude both countries for reasons that will be difficult to overcome.
SEOUL – Two years have passed since US President Joe Biden’s administration pushed through the CHIPS and Science Act, which allocated $52 billion in subsidies to encourage semiconductor manufacturers to build up their capacity within the United States. Over this period, the US also imposed broad restrictions on the export of chip-related technology to China. The goal of these measures was to achieve US self-sufficiency in microchips and to impede China’s quest to achieve the same. Have they succeeded?
SEOUL – Two years have passed since US President Joe Biden’s administration pushed through the CHIPS and Science Act, which allocated $52 billion in subsidies to encourage semiconductor manufacturers to build up their capacity within the United States. Over this period, the US also imposed broad restrictions on the export of chip-related technology to China. The goal of these measures was to achieve US self-sufficiency in microchips and to impede China’s quest to achieve the same. Have they succeeded?