SMT007 Magazine

SMT007-Jan2022

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24 SMT007 MAGAZINE I JANUARY 2022 Feature Article by Dan Feinberg I-CONNECT007 In 1990, the U.S. dominated the world in its use of chips, with about 40% of the total glob- al production made in the United States. at number was down from its peak, but it was still significant. Much has changed in 30 years. Today the U.S. supplies approximately 12% of the global chip market, even though U.S.-based compa- nies use a much higher percentage of the chips. And even though total U.S. chip production has been steadily growing, the U.S.'s share of the rapidly-growing market is still declining as countries such as Taiwan and Korea outpace the U.S. Who Will Maintain Control of Global Chip Manufacturing? Also concerning is the growing number of facilities outside the United States which can produce the most advanced devices. is con- cern is particularly connected to the supply chain and the somewhat "iffy" relationship be- tween China and the United States, as well as apprehension regarding China looming over Taiwan. Many American companies, govern- ment leaders, and citizens are aware of China's eye on Taiwan and the possibility of a takeover. Not being able to supply key components lo- cally (for technology initially developed in the United States) has both economic and securi- ty impacts and has raised significant concerns. ere is a growing consensus that this decline in capability and needed local capacity must stop, be reversed, and that the U.S. must do so rapidly.

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