Although well intentioned, the US CHIPS Act is so poorly designed that it is likely to undercut Taiwan’s TSMC, the world’s leading semiconductor manufacturer, and leave the entire industry even more vulnerable than it already is. Both Taiwan and America stand to suffer from the legislation’s unintended consequences.
CHICAGO – The concentration of advanced semiconductor manufacturing in Taiwan has raised fears in the United States about the vulnerability of this supply chain should China blockade or invade the island. The US CHIPS and Science Act seeks to address that vulnerability with $52 billion in subsidies to encourage semiconductor manufacturers to relocate to America. But the legislation, as designed, will fall short of its objective; it may even weaken Taiwan’s most important industry, further threatening the island’s security.
CHICAGO – The concentration of advanced semiconductor manufacturing in Taiwan has raised fears in the United States about the vulnerability of this supply chain should China blockade or invade the island. The US CHIPS and Science Act seeks to address that vulnerability with $52 billion in subsidies to encourage semiconductor manufacturers to relocate to America. But the legislation, as designed, will fall short of its objective; it may even weaken Taiwan’s most important industry, further threatening the island’s security.