The U.S. is fighting to become one of the biggest microchip producers in the world in pursuit of taking a leading role in the global green transition. While China continues to dominate the microchip space, several policies spurring green development, technological innovation, and manufacturing are pushing the U.S. ever closer to meeting its microchip production goals.
Lael Brainard, the director of the White House National Economic Council, explained, “Semiconductors are the key input in so many goods that are vital to our economy.” He also suggested that adding greater U.S. microchip production would have reduced the supply problems of 2021 and that investing in the sector is expected to help reduce inflation. While the U.S. will increase its production capabilities significantly in the coming years, microchip output will remain an international effort.