American CHIPS Off the Chinese Block
America's world-leading semiconductor industry is a testament to the advantages a competitive market economy has over a command economy like China. But now that the United States has gotten into the business of favoring some producers over others, it is setting the industry up for chronic under-performance.
WASHINGTON, DC –Semiconductors, one of the most important innovations of the last century, are now crucial inputs in mobile phones, personal computers, educational technologies, vehicles, heavy machinery, medical instruments, military equipment, and much more.
From the outset, they have undergone rapid improvement, shrinking in size while increasing in performance. In 1965, Gordon E. Moore, one of the founders of Intel, famously observed that the number of transistors on a computer chip tended to double every year, even as their costs continued to fall. What became known as Moore’s Law remains roughly true today, because research and development continue to advance this critical technology at a rapid rate.
Advances by American companies have enabled more uses and greater cost reductions, positioning the United States as the world leader in chip innovation and development. While some companies focus on research and design, others specialize in semiconductor manufacturing, and still others do both.