The writer is the author of ‘Chip War’
The US government will be “taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN”, President Donald Trump recently declared. Given his repeated promises to impose a tariff on imported chips, we must assume some action is coming. But what type, and to what end?
According to trade data, the US imports around $30bn in chips annually, largely from south-east Asia. Would tariffs lead companies to replace these imports with domestically made chips? Not necessarily. The US has hardly any of the labour-intensive assembly and packaging capabilities that have been offshored to Asia since the 1960s.
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