Addressing America’s Semiconductor Dependency on East Asia

This memo explores the risks of America’s dependency on East Asia for advanced semiconductor chip technology. It discusses how the concentration of semiconductor production in this region exposes the global economy to disruptions, with potentially catastrophic consequences for national security, innovation, and economic stability. A key concern is the imbalance of power that could arise if one nation, namely China, gains control over semiconductor technology, leading to strategic military advantages and economic leverage. Several potential solutions are proposed to mitigate these risks, including the diversification of semiconductor manufacturing through government incentives for domestic production in the U.S., Europe, and Japan. It advocates for the creation of an Indo-Pacific Semiconductor Alliance among key allies to promote supply chain resilience and technological innovation. Additionally, there are suggestions to strengthen military and diplomatic relations in the Indo-Pacific region to ensure security and protect against geopolitical threats. By addressing these vulnerabilities, the U.S. can secure its position in the global semiconductor industry and safeguard national and global stability.