I want to commend to your attention what I think is a very good article by Akhil Thadani and Gregory C. Allen at the Center for Strategic and International Studies which they describe as a “map” of the semiconductor supply chain. Here’s their conclusion:
As it stands, technological and economic limitations have evolved a semiconductor supply chain that is incredibly complex and specialized. Despite consistent efforts, no government has been able to achieve true self-sufficiency in semiconductor manufacturing to date. To successfully fortify the United States’ position along the supply chain and mitigate risk, U.S. policy should aim to grow a healthy and resilient semiconductor ecosystem in which allies and partners continue to play a key role. The Department of Commerce has already stated that this is a key prong of the CHIPS Act implementation strategy. Carried out by the CHIPS office in the Department of Commerce, coordinating investment and incentive programs, promoting knowledge exchanges and collaboration, and facilitating cross-border commerce are all high-priority objectives for CHIPS Act implementation. Continued dialogue with key allies, particularly in the Indo-Pacific, is important to minimize duplicative investments, grow the comparative strengths of each country’s domestic industry, and de-risk key dependencies.
In my view it would be prudent for the U. S. to rely a lot more on Canada and Mexico and a lot less on Taiwan, Japan, and South Korea.