Saturday, April 26, 2025

US vs Asia: Chip Battle Looms

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The US has fallen behind in chip manufacturing, allowing China and other Asian countries to take the lead. President Trump aims to boost US chip production, facing challenges like skilled labor shortages and quality issues. Can the US compete with Taiwan and Asia in producing high-precision chips at scale?

Microchips: The secret sauce

Semiconductors power everyday gadgets from washing machines to smartphones. Although chips were invented in the US, Asia now dominates chip production. Chips’ complex journey involves design, manufacturing, and assembly across different countries.

Trump’s tariffs target the chip industry, aiming to bring manufacturing back to the US. However, Asia’s subsidies to chip companies have fueled their success. The US Chips and Science Act aims to revive domestic chip manufacturing through grants and incentives.


Vocabulary List:

  1. Manufacturing /ˌmænʌʊfækˈtʃʊrɪŋ/ (noun): The process of making products from raw materials.
  2. Production /prəˈdʌkʃən/ (noun): The act of creating especially in large quantities.
  3. Subsidies /ˈsʌb.sɪ.diːz/ (noun): Financial assistance granted by the government to support a market or industry.
  4. Incentives /ɪnˈsɛntɪvz/ (noun): Things that motivate or encourage someone to do something.
  5. Precision /prɪˈsɪʒ.ən/ (noun): The quality of being exact and accurate.
  6. Complex /ˈkɒmplɛks/ (adjective): Consisting of many different and connected parts.

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