OPINION:
The United States of America is running out of time to prevent irreversible degradation of the global supply chain for semiconductors – the building blocks of the information revolution. Congress should stop wasting time by dithering and pass bipartisan legislation that helps address this problem.
The world has changed dramatically over the past few years, and it will continue to change at an unprecedented speed. With the rise of China, a global pandemic, the Russian invasion of Ukraine, and increasing political instability around the globe, it is time for a reboot. The post-Cold War era has ended, and a new uncertain era has begun with a brewing new cold war between the United States and the Chinese government that could set the stage for a hot war. The big question and challenge for our country will be to answer the key question; How should America handle this growing global competition?
America emerged from the Cold War as the unquestioned global economic and military superpower. America had no military rival capable of competing. Our ability to outproduce any country and the advanced capabilities of our military were unrivaled.
But the world looks different today. China’s economic and technological capacity has grown dramatically. From 1980 to 2020, China’s percentage of global GDP grew from 1.7% to 17.4%. They have a modern military as well as global economic and political ambitions. Russia’s invasion of Ukraine and the global pandemic underscores how we have entered a dangerous new era where supply chains can be disrupted, and critical resources needed to fuel an economy and/or a military campaign can become scarce overnight.
One of those critical resources is semiconductors. Our modern military relies on them to function, and the U.S. cannot be left vulnerable to supply disruptions of an essential component of our national security. Yet, we have come perilously close to that situation as America has ceded leadership in semiconductor manufacturing to other countries.
In 1990, the United States manufactured nearly 40% of the world’s semiconductors. Today, the U.S. produces only 12% – and without a change in direction, the U.S. percentage is on track to decline further. This disturbing trend should have been addressed years ago.
During my last year in Congress, Michael McCaul (R-TX) led a House Republican Task Force on China which pointed out, that the Chinese Communist Party (CCP) “is spending hundreds of billions of dollars with the goal to establish itself as the global leader in all segments of the semiconductor supply chain, including the production of chips.” The Task Force further highlighted how China hopes to produce 70% of the semiconductors it uses by 2025 alone.
The Task Force made clear what is at stake, stating “the supply chain risks exposed by the pandemic were a wakeup call to all Americans, but pale in comparison to the incipient risks of broader CCP ambitions—control of the science, technology, and innovation necessary for critical sectors of the 21st-century economy.”
If the People’s Republic of China were to cross the Taiwan Strait to eliminate and subjugate the Taiwanese people, then Chinese President Xi would capture 64% of the world’s manufacturing capacity of semiconductors.
The national security implications for the United States are real and obvious. That is why the House Republican Task Force on China recommended:
Congress should pass certain advanced semiconductor manufacturing incentives found in the provisions of the bipartisan … CHIPS for America Act; Congress should design and pass tax incentives to encourage more domestic production of advanced semiconductors;
The Administration and Congress should seek to make substantial direct and indirect investment in semiconductor and electronic component assembly in the U.S. sufficient to meet the needs of defense and critical infrastructure systems. This is essential to undermine the PRC’s control over the U.S.’ capacity to rebuild after a cyber incident and prevent the introduction of malicious components during the manufacturing process.
The Senate is poised to pass further legislation that begins to implement these specific recommendations and it should immediately be taken up and passed by the House. The legislation provides $52 billion for grants and incentives to spur domestic manufacturing of semiconductors. It includes tax incentives that encourage more domestic production of advanced semiconductors. The legislation has significant bipartisan support, including from many national security leaders in the Republican party and Republican conferences in the House and Senate. The bill sets us on the right path and works towards ensuring the new era is dominated by American economic and military strength, and the American commitment to peace, human rights and the rule of law.
Most intelligence and military analysts believe that China will move to invade Taiwan by the 2030s, which means we lack the time to replicate in the U.S. the manufacturing capacity of semiconductors that exists in Taiwan today.
Congress needs to remember that the semiconductor industry which is foundational to the leadership of EVERY OTHER US industry, is one area that we can’t afford NOT to invest in before it is too late. The House should expeditiously pass this legislation to help the U.S. regain our leadership in semiconductor manufacturing and thus protect our national security.
- Will Hurd, a Republican, is a former CIA officer, member of Congress from Texas and author of American Reboot.
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