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Why is the US trying to make more chips at home?
The US wants to reduce its dependence on Taiwan for semiconductors, especially as tensions with China rise. By increasing domestic chip production, the US aims to secure its supply chain, protect national security, and stay competitive in the tech industry.
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What are the risks of relying on Taiwan for chips?
Taiwan produces about 95% of the world's advanced chips, making the global supply highly vulnerable to regional conflicts or political tensions. If supply chains are disrupted, it could impact everything from smartphones to military equipment.
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How could shifting chip supply affect global tech companies?
Moving chip manufacturing away from Taiwan might lead to changes in supply chain dynamics, potentially increasing costs or causing delays. It also prompts companies to diversify their sources to avoid over-reliance on a single region.
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What does this mean for US-China relations?
The push for domestic chip manufacturing is part of broader strategic tensions between the US and China. The US aims to limit China's access to advanced chips, while China continues to develop its own semiconductor industry, intensifying regional competition.
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Will this change the future of the semiconductor industry?
Yes, increased US investment and efforts to reshore chip manufacturing could reshape the industry, encouraging more regional production and innovation. However, challenges like high costs and technological barriers remain significant hurdles.