If the Biden administration had its way, far more electronic chips would be made in factories in, for example, Texas or Arizona. These chips would then be shipped to partner countries such as Costa Rica, Vietnam, or Kenya for final assembly before being distributed worldwide to power a range of devices from refrigerators to supercomputers.
Although not commonly associated with semiconductor production, these locations are central to the administration’s efforts to reshape the global chip supply chain through intensive negotiations. The strategy aims to attract foreign investment in U.S. chip manufacturing and establish assembly facilities in other nations as part of a novel approach dubbed “chip diplomacy.”
The administration contends that increasing domestic semiconductor production will enhance the country’s economic prosperity and national security. President Biden highlighted these endeavors in a recent interview with ABC News, citing successful negotiations with South Korea resulting in significant investments in U.S. chip manufacturing.
Crucially, a significant aspect of this strategy involves international collaboration to ensure the sustainability of investments made within the United States. The administration is working closely with partner countries to reinforce the longevity of U.S.-based semiconductor initiatives.
