Janet Yellen, the Secretary of the United States Treasury, stated on Tuesday that the United States has become excessively dependent on China for crucial supply chains, notably in products related to clean energy, and that the United States needs to expand its sources of supply most especially in the semiconductors.
The manufacture of integrated circuits and other semiconductor products calls for the utilization of specialized machinery. (Source: Getty Image/Digikey)
US Should Have Semiconductor Industry of Its Own
During her speech at an event for Fortune CEOs held in Washington, Yellen reiterated her long-held belief that it is not in the best interest of the United States to economically divorce from China. She stated that although she has never been “a strong believer” in industrial strategy, she felt that the United States had been too passive for too long while other countries built up their semiconductor industry through the use of massive subsidies.
She stated that the United States would face issues with its national security if it did not have a robust semiconductor sector of its own, and she added that the Chips and Science Act from the previous year would assist in reversing that trend Yellen said that if they believe that giving up on semiconductor manufacturing entirely is a wise course of action for the US, then they are deluding themselves. Giving up on chip production would be a mistake.
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