The Biden administration is pushing for a transformation of the global chip supply chain, aiming to have more electronic chips manufactured in the United States and then sent to partner countries for final assembly. This new approach, termed “chip diplomacy,” involves attracting foreign investment in U.S. chip-making while working with international partners to create a more resilient and secure supply chain. The administration hopes to address security concerns related to China’s dominance in chip manufacturing and reduce the risk of disruptions in the supply chain, such as those experienced during the pandemic and conflicts like the one in Ukraine.
By expanding investments in semiconductor manufacturing and green energy technology, the administration seeks to bolster domestic manufacturing, protect national security interests, and promote human rights by reducing reliance on Chinese production. Efforts led by Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo focus on diversifying supply chains and attracting foreign investments in high-tech manufacturing. Despite challenges posed by East Asian chip factories having cutting-edge technology and lower costs, projections suggest that the U.S. share of global chip manufacturing could increase to 14 percent by 2032.
Through initiatives like the CHIPS Act and partnerships with countries like Costa Rica, Indonesia, and Kenya, the U.S. government is working to develop secure supply chains and provide job training to support the expansion of semiconductor manufacturing. The focus on collaboration with overseas institutions and countries highlights the strategic advantage that the U.S. has over China in diversifying the global chip supply chain and recognizing the increasingly interconnected nature of technology production on a global scale.
