Ex-Google CEO: The U.S. is about to lose the chip competition

Ex-Google CEO, Eric Schmidt wrote in an opinion piece published on Monday that for national security concerns, the United States should do more to attract overseas chips manufacturers and build factories locally. Schmidt points out that China is accelerating investment in chip manufacturing technology and capacity. He is urging the United States to reduce its dependence on Taiwan and South Korea for the most advanced semiconductors and increase its own manufacturing capabilities. The ex-Google CEO believes that the United States should encourage chip foundry giants to cooperate with American chip design companies. The likes of TSMC and Samsung Electronics should build more factories in the United States.

International relations scholar, Graham Allison and Schmidt published an article on the issue. They are calling on the United States to reduce its reliance on foreign chip manufacturing. They argue that this would jeopardize U.S. national security. In their paper, they set out policy recommendations to improve the competitiveness of U.S. chip manufacturing.

“If China develops a lasting advantage in the semiconductor supply chain, it will achieve breakthroughs in fundamental technology”. The article further claims that the U.S. may not be able to match this technology. “The United States cannot spend money to get out of this predicament.”

Ex-Google CEO: The U.S. need to do more to remain ahead

Currently, both TSMC and Samsung are building chip factories in the U.S., but in Schmidt and Allison’s view, the U.S. needs to do more to ensure America’s long-term prosperity.

Previously, the U.S. government proposed a $52 billion chip support plan, which is still under review by U.S. lawmakers. Beyond that, the ex-Google CEO and Allison argue the U.S. should leverage its R&D advantage by making less advanced but more widely used slower chips through the likes of Intel and GlobalFoundries. It should also redouble efforts to get TSMC and Samsung builds a factory in the United States.

“The United States is about to lose this chip competition”… the article says. They urge the U.S. government to mobilize a national effort similar to the one the United States launched during World War II. At the time, the technology they worked so hard to develop helped the United States win World War II.