Will Hunt, Remco Zwetsloot
CSET submitted this comment to the Commerce Department’s Bureau of Industry and Security on how to address concerns about the security of semiconductor supply chains in regions where natural disasters, geopolitical events or other factors might cause serious disruptions. Download Full Comment
“Many critical parts of the semiconductor supply chain are highly consolidated, often in a single or small number of suppliers or countries,” CSET’s Will Hunt and Remco Zwetsloot write. They submitted this comment in response to a public request from the Bureau of Industry and Security for information and comments related to “the capabilities of the U.S. microelectronics industrial base to support the national defense, in light of the global nature and interdependence of the supply chain with respect to manufacture, design, and end use.” Supply chains are concentrated mainly in the US and allied countries, but some supply chain segments, such as leading-edge logic chip manufacturing, have consolidated in regions posing higher risks of natural disasters, geopolitical events, or other disruptions.
To address these concerns, Zwetsloot and Hunt argue:
Congress should fully fund the manufacturing grant program in the CHIPS for America Act, with a focus on leading-edge logic chip manufacturing.
These investments should be coupled with investments in education and workforce programs, which are essential for long-term supply chain competitiveness.
A combination of domestic investments and immigration reform will be needed to support short-term semiconductor workforce demands generated by reshoring.
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