The US currently produces only 12% of the world's computer chips, a significant decline from 37% in 1990, with 75% of manufacturing occurring in Asia.
This reliance on foreign production, particularly from companies like Taiwan Semiconductor Manufacturing Company which is Apple's primary supplier, is exacerbated by a global chip shortage impacting various industries. Building new chip facilities is extremely expensive, with costs up to $20 billion, and foreign governments offer more attractive financial incentives and less regulation.
President Biden's administration aims to revitalize domestic chip production through a $50 billion investment in his infrastructure plan, recognizing the economic and national security risks of falling behind China in chip manufacturing. However, transitioning away from foreign contract manufacturers and ensuring a skilled US workforce present significant challenges.
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