China’s Flybys Should Spur American Microchip Revival

The U.S. is home to just 10 percent of the world’s foundry capacity.

American apps, web services, and designs are wildly profitable. Apple builds iPhones in China with chips manufactured on Taiwan. Likewise, Taiwan manufactures Qualcomm’s 5G mobile wireless chips and Nvidia’s graphics processors, which are crucial for artificial intelligence. Amazon, Google, and dozens of other American firms similarly design chips which are manufactured overwhelmingly in southeast Asia. Even Tesla now designs one of its own high-end chips. In all, the market value of these American fabless semiconductor firms totals more than $7 trillion.

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