While Global Chip Shortage Persists, China Eyes Greater Market Control
With a growing microchip production shortage globally, especially within the United States, China is testing their plan to become an even bigger global player in the microelectronics sector.
Asian countries, namely South Korea and Taiwan, already make upwards of 80% of the worlds semiconductor products. “According to the Semiconductor Industry Association, the U.S. accounts for just 12% of global semiconductor production capacity, with more than 80% of that capacity in Asia. Rising costs and foreign government subsidies to national champions (as in China) are a significant disadvantage for U.S. semiconductor companies that still make substantial capital investments domestically.” reports Forbes.
It was requested by Rob Portman, US Senator and Senate Auto Caucus co-chair, along with others, that the United States National Economic Council work with Congress to increase semiconductor production in order to combat the current shortage. Coming months will show whether or not a serious effort is put into place to reverse the shortage and ease this problem the US is experiencing.