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The United States is making a push to become a major player in the global microchip industry, aiming to reduce its reliance on foreign powers such as China and Taiwan. The Biden administration has announced a $39 billion investment to support the development of semiconductor production facilities across the country. This comes after the U.S. microchip manufacturing share has fallen from 37 percent of the world supply in 1990 to just 12 percent today. The U.S. is striving to increase its contribution to the global microchip manufacturing market to around 20 percent by 2030. The need for a stronger domestic microchips supply chain became evident following shortages experienced in 2021, after the Covid-19 pandemic. The U.S. is also providing funding for new semiconductor projects, with the aim of boosting domestic production efforts. These efforts have been mirrored in Europe, where the EU has passed the European Chips Act to boost its global market share in semiconductors. The heavy public and private investment in the semiconductors industry in recent years is expected to help establish the U.S. as a world leader in microchip manufacturing.
