America Has to Invest in Advanced Chipmakers or Lose Battle to China

Key Points

  • Semiconductors are the strategic industry of our era

  • China is spending aggressively to wrest high tech leadership from the United States

  • Strategic industry support is needed, much like during the Cold War

  • Government investment for US chipmaking is akin to spending on national defense

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"Semiconductors are the strategic industry of the modern era," Lewis writes. Powering everything from cars to communications to weapons systems, they are vital to both the economy and national security. China is spending billions in an effort to surpass the U.S. in tech leadership, and while the U.S. has made some defensive measures, like limiting high-tech exports, more action is needed.

Lewis argues that federal investments for strategic industry should not be off limits. Much like the spending on the industrial and technological base during the Cold War, which set the foundations for today’s Silicon Valley, federal investment is needed again.