In this day and age, technology is at the forefront of things. In order to keep manufacturing new tech, we need more semiconductor chips which are made by Asian countries. Now, the US has passed a bill to promote semiconductor manufacturing in America.
Today, 70% of semiconductors manufactured globally are from Asia. The US plans to change this and make the Pacific region the biggest semiconductor manufacturer in the world. The US Chips and Science Act plans to crumble the Asian semiconductor industry by providing massive incentives for the manufacturing of semiconductors. On top of that, the US will also provide major subsidies and tax cuts on semiconductor manufacturing. Since the act was passed in 2020, there have been 67 new projects in the US for the research and development of semiconductor chips. The US is emphasising semiconductors after the recent cut in chip exports from China, which severely affected US tech companies.
This is not exclusive to America as many countries have come up with their own chips act that promotes the manufacturing of semiconductors one way or the other. The EU introduced their Chips Act in 2022 which also urges European countries to manufacture chips in-house. These perks offered by the European government attracted the biggest manufacturer of semiconductors, Taiwan Semiconductor Manufacturing Company Ltd. TMSC, which has set up a $11 billion chip plant in Germany.
Similarly, England also introduced their Chips Act that promotes chip manufacturing in the UK. This can prove to be a very big problem for Asian semiconductor manufacturing countries and also for countries like India, that are planning to capitalise on the emerging market.
