It’s no secret that America—the birthplace of the transistor and, by extension, the modern semiconductor industry—has gradually ceded its leadership in the manufacturing of semiconductors.
These chips power everything from smartphones and cars to satellites, advanced defense systems and artificial intelligence. They are the backbone of the modern economy and the foundation of next generation technology such as quantum computing. Simply put, semiconductors are essential for modern life and critical to our technological future.
For decades, many American semiconductor companies followed a “design here, build elsewhere” strategy that led to a decline of U.S.-based manufacturing from 37% in 1900 to just 10% by 2022.
While these companies were following clear economic logic, the negative consequences to both economic, supply chain and national security should concern us all. Without a strong semiconductor manufacturing base, America is vulnerable in times of crisis. And our leadership role in the technologies of the future that rely on semiconductors is at risk.
The Trump administration has taken bold and necessary steps to reverse this decline. The One Big Beautiful Bill Act enhanced the Advanced Manufacturing Investment Tax Credit, sending a clear signal: the United States is serious about rebuilding its semiconductor manufacturing base. But while supply-side incentives play a critical role in leveling the playing field (especially given the enormous scale of manufacturing in locations such as Taiwan), more is needed to create the demand-side incentives to help companies bring the demand back onshore. Only with a thoughtful combination of both supply- and demand-side interventions will we make meaningful progress to restoring supply chain integrity and resiliency.
That’s precisely the approach that President Trump and Secretary Lutnick are taking. The administration has set an ambitious yet achievable goal of ensuring at least 50% of chips used in America are made in America.
But rebuilding supply isn’t enough.
We must also realign incentives so companies have a clear reason to bring their chip demand back onshore. That’s why we support the administration’s proposal for targeted import tariffs on semiconductors, coupled with a “chip-for-chip” import credit system. This approach would provide a clear path for companies to gain relief from those tariffs through committing to buy more chips locally from those that are building locally in the U.S. This kind of proportional and pragmatic exemption system would accelerate domestic production and send a clear message: buying chips locally in America is no longer optional, it is essential to serving the U.S. market.
As executive chairman of a company that has manufactured chips in America for decades, I have never been more optimistic about the future of our industry and our ability to revitalize domestic manufacturing.
Together we can restore America’s essential manufacturing economy and accelerate our leadership role in the technologies of the future.
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