Semiconductor investments announced in the last two years in the United States total more than $300 billion, according to White House data.
First and foremost, the U.S. government claims that the CHIPS and Science Act, which President Joe Biden signed in August 2022, will ensure that the United States will once again lead the world in developing and manufacturing the semiconductors that make everything from cars to refrigerators to smartphones work.
The U.S. invented these chips and its government believes it plans to make its U.S. economy less dependent on foreign chipmakers again.
Already, private companies have announced more than $300 billion in new investments in U.S. manufacturing over the past two years, many of them thanks to this law, creating tens of thousands of jobs of the future in every corner of the country.
In this regard, the United States, its allies and its partners are taking steps to deepen investments in critical industries in each other’s economies as a way to reduce dependence on other countries that have played a leading role in these industries, especially China.
For example, the United States, its allies and its partners are coordinating to increase their collective semiconductor production capacity.
As part of the United States’ CHIPS and Science Act, the State Department will manage the International Technology Innovation and Security Fund, which will promote the development of complementary and secure supply chain investments in key partners to strengthen and support the U.S. semiconductor industry.
Similarly, coordinated efforts to catalyze infrastructure investment in emerging and developing countries through the Global Infrastructure and Investment Partnership – particularly to support the digital economy and the transition to green energy – will help reduce uncertainty, strengthen secure supply chains, create new opportunities for businesses and workers, and drive overall economic growth.
From the White House perspective, the greater policy clarity resulting from these types of commitments and the shared experience of supply constraints during the pandemic can further catalyze mutual investment, thereby deepening the U.S. investment relationship with key allies and partners.