Apple, Intel, Semiconductors, and Moore's Law

Key Points

  • Apple's decision to discontinue use of Intel chips increases U.S. reliance on chips made by Taiwan

  • There are risks - manmade and natural -- in having such a high concentration of chipmaking in one place

  • These risks grow as chipmakers compete to make advances in new generations of advanced processors

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"The app economy" may dominate discussions of "tech," but semiconductors are still what drive the digital economy. But there is a worrisome concentration of advanced chipmaking in Taiwan.

Bret Swanson, nonresident senior fellow, American Enterprise Institute

While much talk is centered around the latest consumer apps and gadgets, semiconductors are what drive both these products, as well as every other 'smart' product -- from appliances to cars and beyond. The issue is that much of the world’s high-end chipmaking capability lies on the tiny island of Taiwan. The U.S. is home to just 10% of global foundry capacity.

Onshoring the manufacture of these “bleeding-edge" chips is vital, as relations between Taiwan and China deteriorate and put semiconductor supply chains at risk.