Sunday 16 March 2025 02:37 GMT

US Chip-Making Dream Awakes To Labor Crisis Reality


(MENAFN- Asia Times) Semiconductors power nearly every aspect of modern life – cars, smartphones, medical devices and even national defense systems.

These tiny but essential components make the information age possible, whether they're supporting lifesaving hospital equipment or facilitating the latest advances in artificial intelligence.

It's easy to take them for granted, until something goes wrong. That's exactly what happened when the COVID-19 pandemic exposed major weaknesses in the global Semiconductor supply chain .

Suddenly, to name just one consequence, new vehicles couldn't be finished because chips produced abroad weren't being delivered. The semiconductor supply crunch disrupted entire industries and cost hundreds of billions of dollars.

The crisis underscored a hard reality: The US depends heavily on foreign countries – including China, a geopolitical rival – to manufacture semiconductors. This isn't just an economic concern; it's widely recognized as a national security risk .

That's why the US government has taken steps to invest in semiconductor production through initiatives such as the CHIPS and Science Act , which aims to revitalize American manufacturing and was passed with bipartisan support in 2022.

While President Donald Trump has criticized the CHIPS and Science Act recently, both he and his predecessor, Joe Biden , have touted their efforts to expand domestic chip manufacturing in recent years.

Yet, even with bipartisan support for new chip plants, a major challenge remains: Who will operate them?

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