The supply chain shocks witnessed during the COVID pandemic led governments like the U.S. to ramp up their efforts to reshore manufacturing. Semiconductors, which faced particularly severe bottlenecks, became a top priority as officials promised billions of dollars in subsidies to boost domestic investment.
The rationale was simple: As chips are now an essential part of every modern-day electronic device, increasing domestic chipmaking capacity will result in a more stable supply chain. With AI expanding demand for high-end chips even further, governments are doubling their efforts to build out their domestic chip manufacturing.
