Regaining the Edge in U.S. Chip Manufacturing

Key Points

  • Taiwan and Korea are in the lead, and China could follow

  • China's efforts are backed by $150 billion in funding

  • Intel and the U.S. government are moving on several fronts to shore up U.S. competitiveness

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For many years, the U.S. led in both the development and manufacturing of computer chips. However, times have changed. The U.S. has been steadily losing market share to heavily subsidized competitors in Korea and Taiwan.

The environment is likely to be further complicated by China’s big push into the arena. The Chinese government is pledging billions of dollars to build its own capacity.

Until recently, U.S. manufacturing capacity has remained stagnant even as foreign capacity has grown.