The Biden administration is pushing for more foreign companies to invest in chip-making in the United States and encouraging other countries to establish factories for final assembly and packaging.
The goal is to have electronic chips produced in states like Texas or Arizona and then sent to partner countries such as Costa Rica, Vietnam, or Kenya for assembly. This global chip supply chain transformation is a key focus for administration officials who are actively engaging in negotiations to make this happen.
The plan, known as “chip diplomacy,” involves attracting foreign investment in chip manufacturing within the U.S. and collaborating with other nations to complete the production process. The administration believes that increasing chip production domestically will not only boost the country’s economy but also enhance its national security.
President Biden highlighted his efforts in a recent interview with ABC News, citing a successful deal with South Korea to invest billions of dollars in U.S. chip-making. However, a crucial aspect of the strategy involves working with international partners to ensure the longevity of investments made in the United States.
By expanding chip production capabilities in the U.S. and strengthening partnerships with foreign countries, the Biden administration aims to create a more resilient and secure global supply chain for electronic chips. This initiative is seen as a significant step towards reducing dependency on foreign chip manufacturers and enhancing America’s technological competitiveness in the global market.