2025 Concordia Annual Summit

Chips and Change: The Evolution of the Semiconductor Supply Chain

  • Global Economy & Trade
Rishi Iyengar, Kevin McGinnis

Session Summary

Important
Quotations

"Over 90 percent of advanced chips are currently manufactured in Taiwan. It's not just about reshoring what exists today, it’s about figuring out what comes next and ensuring that future manufacturing happens in the United States."
Kevin McGinnis

Key
Takeaways

  • Supply Chain Resilience and Global Dependencies: The semiconductor industry faces a critical vulnerability with over 90% of advanced chips manufactured in Taiwan, highlighting the urgent need for supply chain diversification. Building resilient supply chains requires acknowledging inherent global dependencies, particularly on close allies like the Netherlands for essential manufacturing equipment such as extreme ultraviolet lithography scanners. The semiconductor industry must fill approximately 1.4 million additional jobs by 2030, representing massive growth that demands coordinated workforce development.

 

  • Strategic Policy Integration: Successful semiconductor reshoring requires a combined “promote and protect” strategy that integrates R&D subsidies, export controls, and tariffs rather than emphasizing one approach over another. Policy continuity across administrations has been crucial, with semiconductor initiatives beginning in the first Trump administration, expanding under the Biden administration’s CHIPS Act, and continuing implementation in the current administration. Research security has become increasingly important, requiring cultural shifts within universities and institutions to protect intellectual property while maintaining innovation capabilities.

 

  • International Coordination Challenges: Countries must be realistic about their role in the global semiconductor supply chain rather than competing for all manufacturing facilities, with coordination through programs like the State Department’s International Technology Security and Innovation Fund. Trade pressures and tariffs targeting close allies create risks for semiconductor supply chain stability, requiring careful insulation of critical technology partnerships from broader diplomatic disagreements. The focus must extend beyond reshoring current manufacturing capabilities to developing next-generation technologies to maintain competitive advantage over adversaries like China.

Action
Items

  • Immediate Term: Enhance Supply Chain Visibility by investing in comprehensive mapping and monitoring systems to understand all components and dependencies in semiconductor supply chains. Strengthen Research Security Infrastructure by expanding research security training and systems beyond large institutions to all universities contributing to critical technologies. Protect Allied Partnerships by developing mechanisms to insulate semiconductor cooperation from broader trade disputes, particularly with key allies providing essential manufacturing equipment.

 

  • Medium Term: Expand Workforce Development Programs by scaling successful models like Arizona State University’s engineering expansion to other institutions, focusing on removing barriers to STEM education and providing hands-on training with industry-standard equipment. Coordinate International Partnerships by working with organizations like the OECD to help partner countries assess their strengths and identify optimal roles in the semiconductor supply chain, preventing wasteful competition. Integrate Immigration and Talent Strategy by developing comprehensive policies that leverage international talent, particularly from key partner countries like India, while maintaining security protocols.

 

  • Long Term: Invest in Next-Generation R&D by prioritizing research and development for future semiconductor technologies rather than focusing solely on reshoring current manufacturing capabilities. Build Resilient Regional Networks by establishing semiconductor manufacturing and assembly capabilities in trusted partner countries, particularly in the Western Hemisphere, with appropriate workforce training and infrastructure development. Create Sustainable Innovation Ecosystems by fostering environments that support both large-scale manufacturing and small innovative companies, ensuring continuous technological advancement while maintaining security protocols.

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