In 1990, the United States and Europe produced more than three-quarters of the world’s semiconductors. Now, however, their combined output is less than a quarter. In the process, China, Japan and South Korea have risen, pushing the US and Europe out of the market. By 2030, China is expected to become the world’s largest chip producer. < / P > < p > the shift in chip manufacturing centers is partly due to higher financial incentives for factory construction in countries other than the United States to help establish a domestic chip manufacturing industry. Chip companies are also attracted by a growing network of suppliers outside the United States and an expanding team of skilled engineers who can operate expensive manufacturing machinery. < / P > < p > although manufacturing has been fleeing the United States in recent decades, many of the world’s largest chip companies are still headquartered there. For example, while Intel, America’s top selling chip giant, also has factories in Ireland, Israel and China, most of its production is in the United States. < / P > < p > however, other large U.S. chip companies have outsourced all production to Asian producers, such as NVIDIA, based in Santa Clara, California, which is the most valuable semiconductor company in the United States, and its chips are mainly produced outside the United States. By 2019, US companies accounted for about 47% of global semiconductor sales. < / P > < p > the rapid growth of OEM manufacturers such as TSMC has helped accelerate the shift of chip manufacturing outside the United States. Samsung Electronics is another big OEM company, but most of its factories are not in the United States. The raw materials used in chip manufacturing, including industrial chemicals and silicon crystals, are also mainly from outside the United States. TSMC is the largest and most advanced manufacturer of this kind. < / P > < p > however, the United States maintains a larger share of the industrial cake in other chip manufacturing areas, especially in the software tools used to design the layout of chip circuits. < / P > < p > for decades, with the development of Asian supply chains and factories, the escape of high-tech manufacturing from the United States has always been an important topic of debate. These Asian governments not only provide generous subsidies, but also cheaper labor and less regulation. Compared with other high-profile manufacturing industries, this outflow is particularly obvious in the computing hardware and consumer electronics industries. < / P > < p > if the situation continues on its current trajectory, the U.S. share of chip manufacturing is expected to shrink further in the next few years, in part because China’s capacity is growing rapidly. China is investing tens of billions of dollars into its chip industry, hoping to eventually catch up with or surpass other countries. < / P > < p > chips are increasingly seen as a national security priority globally, as they play a significant role not only in consumer technology, but also in military and cyber warfare.

‘s novel coronavirus pneumonia further promotes the efforts of the United States to bring more chip manufacturing industry back to the US territory. The closure of factories due to the health crisis disrupted Asia’s supply chain, adding to concerns that the concentration of the industry in Asia could affect access to a key technology in the United States during the crisis. Analysts say the U.S. government’s incentives may help reverse the trend. It is estimated that the construction and operation of a top chip manufacturer, which makes the CPU used in computers, could cost more than $30 billion in 10 years. As a result, financial aid to help offset some of the costs may change the company’s investment considerations. There has never been a federal subsidy for chip manufacturing in the United States, although each state has its own support measures, including subsidized land and tax breaks. In Asia, by contrast, countries often provide free or cheap land and offer more help in purchasing manufacturing equipment, which accounts for most of the cost of chip manufacturing. (small) < A= https://ibmwl.com/category/global-tech/ target=_ blank>Global Tech

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