Chris Miller, “Chip War” author and Tufts University Professor of International History, breaks down the battle to reinvigorate US chip-making. He joins David Westin on “Wall Street Week” daily to discuss the “Chip War” and the implications of the CHIPS Act on the future of chip production in the United States.
Here are some of his suggestions and prognostics based on the discussion:
- Increased US Share in Global Chip Production: The CHIPS Act aims to boost the US share of global chip production to about 14% by 2032, up from a potential 8% without such initiatives. This increase is seen as a significant step towards enhancing the US’s self-sufficiency in chip manufacturing.
- Workforce Challenges: Addressing the need for skilled workers to operate chip plants, Miller highlighted ongoing programs where companies are partnering with educational institutions to train workers in the necessary disciplines. Despite challenges, he expressed confidence that the workforce issue is being addressed and will be resolved over time.
- Skilled Immigration Importance: Miller emphasized the historical significance of skilled immigration in driving technological advancements in the chip industry. He noted that while the US immigration system poses challenges, skilled immigration from various countries has played a central role in US technological progress.
- Global Chip Manufacturing Diversification: Miller viewed positively the efforts of US allies like European countries, South Korea, and Japan in building their own chip manufacturing ecosystems. He highlighted the benefits of geographic diversification in global chip production for enhancing resilience and reducing dependence on specific geopolitical hotspots.
- Long-term Impact: Looking ahead, Miller suggested that over the next decade, there would be a meaningful increase in the share of chips produced in the US, leading to around 60% self-sufficiency. He emphasized the importance of sourcing chips from trustworthy locations to ensure the resilience of the US manufacturing base.
Overall, Miller’s suggestions and prognostics revolve around building a stronger domestic chip industry, addressing workforce challenges, leveraging skilled immigration, and fostering global cooperation in chip manufacturing for a more resilient and diversified supply chain.
Notably, Chris Miller did not criticize or specifically mention Biden’s major effort to contain China’s chip industry!