A Battle to Reclaim U.S. Chipmaking Glory
The announcement comes amid renewed efforts to restore American leadership in semiconductors, once a field the U.S. dominated. In the early decades, U.S. factories produced 100% of the world’s chips. But by the 1990s, cheaper overseas production and heavy foreign subsidies shrank America’s share to 37%. Today, it sits at just 10%.
Past administrations sought remedies. In the 1980s, Ronald Reagan imposed tariffs on Japanese chips while cutting corporate taxes, but the decline continued. By contrast, the CHIPS Act of 2022 injected $39 billion in subsidies and another $13 billion in tax credits, helping fund 16 new U.S. chip plants.
Still, challenges remain. Intel itself has battled investor lawsuits, including a recently dismissed case alleging it misled shareholders over manufacturing struggles. Its foundry services posted a $7 billion loss in 2023, sending shares tumbling.
What Comes Next
The government’s stake may be passive, but analysts say it carries weight far beyond Wall Street. With artificial intelligence, advanced defense systems, and everyday electronics reliant on chips, America’s technological sovereignty is once again in play.
“This is more than a financial transaction,” Lutnick said. “It’s a statement that America will lead in semiconductors again.”
