ChinaTalk The Chips Act and National Security
Aug 1, 2024
Ben Schwartz, the former director for national security at the CHIPS Program Office, shares insights from his work managing a $39 billion grant program focused on reshoring semiconductor manufacturing. He discusses the balance between economic growth and national security in the context of the CHIPS Act. Schwartz elaborates on the challenges of reshoring and friend-shoring in an era of Chinese dominance, while addressing the complexities of supply chain data collection and compliance hurdles for semiconductor companies.
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Strategic Importance of CHIPS Act
- The CHIPS Act is crucial for national security and economic competitiveness.
- Direct negotiations and funding allocation are more effective than tax incentives alone.
Resilience vs. Efficiency
- Companies prioritize short-term profits over long-term supply chain resilience.
- Government intervention is needed to address this misalignment.
Importance of Domestic Chip Manufacturing
- Establishing domestic leading-edge chip manufacturing is crucial for national security.
- Even a small domestic capacity is valuable for resilience and technological leadership.