Is it a good idea for the United States to "revive domestic production of semiconductors"? Experts point out issues that affect success or failure | Business Insider Japan

The United States aims for domestic production of semiconductors again.

Half a century after the semiconductor industry was born in Silicon Valley, California, most of the factories (fabs) that manufacture small transistors for semiconductor devices are now located overseas such as Taiwan and China.

The global shortage of semiconductors, which originated in a pandemic, hindered the production of products that depend on various types of semiconductors, such as automobiles, smartphones, medical devices, and even dishwashers, and became a major problem. It is. Consumers are angry, arguing that politicians and businesses should once again produce semiconductors in the United States as a solution.

Due to geopolitical concerns that China may invade Taiwan and the fact that Taiwan has many earthquakes, tens of billions of dollars of taxes will suddenly be used to increase the supply capacity of semiconductors in the United States. It is supposed to be.

In April 2021, Pat Gelsinger, CEO of Intel, a major US semiconductor company, told the Washington Post, "Where is the semiconductor factory for the next few decades, where is the oil reserve? It is more important than it is. It has a very important meaning for the security of the country, the economy, and our country. "

But while it's true that Intel will benefit from government behaviour, is it good for others to have a semiconductor factory in the United States?

The establishment of a state-of-the-art semiconductor factory requires a large amount of money, and it also entails a large environmental cost. Also, given the tragic path that American manufacturing has taken so far, is there any reason to revive semiconductor production and this time it will work?

Insider talked to several semiconductor experts to explore the key points that could make or break the revival of semiconductor manufacturing in the United States.

What we have learned from the interview is that if the United States is serious about becoming a semiconductor powerhouse, the $ 52 billion federal subsidy currently under consideration by the US Congress will not be enough.