America’s struggle for semiconductor dominance

The race to dominate the semiconductor industry has intensified, with China's manufacturing capabilities on the rise. In response to this mounting threat, the US government is leaving no stone unturned to safeguard its national security and technological edge. A significant step in this direction is the recent memorandum of agreement (MOA) signed by the Departments of Commerce and Defense, emphasizing collaboration and coordination in distributing CHIPS incentive funds. This strategic move is expected to bolster the domestic semiconductor industry and maintain America's position as a global technological powerhouse.

The rapid growth of China’s semiconductor manufacturing capabilities has raised significant concerns for the United States, prompting the Departments of Commerce and Defense to take decisive action. In an effort to safeguard national security and maintain its global leadership in semiconductor production, the US government has signed a memorandum of agreement (MOA) that emphasizes coordination and information sharing in doling out CHIPS incentive funds. This post explores the key measures being taken by the US to stave off the China threat and bolster its domestic semiconductor industry.

The MOA: Strengthening Coordination and Resiliency

The signing of the MOA between the Departments of Commerce and Defense is a crucial step forward in enhancing the capacity and resiliency of the US semiconductor industrial base. The agreement ensures that both departments collaborate effectively, aligning their investments to support a robust semiconductor industry. By working together, they aim to expand domestic semiconductor production capacity in a coordinated fashion to keep America at the forefront of technological advancement.

National Security Review: Safeguarding American Interests

To safeguard national security, the MOA enables a comprehensive national security review of applications related to semiconductor production. This ensures that critical technologies remain within American borders and are not susceptible to foreign exploitation. By controlling the production and usage of semiconductors in the defense sector, the US seeks to maintain its technological edge and protect sensitive information from potential adversaries.

Making Semiconductors in America: A Matter of Vital Importance

Commerce Secretary Gina Raimondo has repeatedly emphasized the importance of producing semiconductors within the US for both economic and security reasons. With China aggressively investing in its semiconductor production, the US recognizes the need to stay ahead in the race to invent and commercialize future technologies. By producing semiconductors domestically, the US not only strengthens its economy but also ensures its technological independence and national security.

The CHIPS and Science Act: Boosting Domestic Production

The CHIPS and Science Act, signed in 2022, has been a game-changer in supporting the domestic production of semiconductors. With nearly $53 billion in funding, the act addresses the global chip shortage that arose during the COVID-19 pandemic. The Department of Commerce has been actively distributing these funds to kickstart CHIPS manufacturing within the United States, further enhancing the nation’s semiconductor capabilities.

Semiconductors: The Backbone of Modern Technology

As the brains of modern devices, semiconductors play a vital role in everyday items like cell phones, cars, and household appliances. Their production is not only a lucrative industry but also holds immense implications for international relations. Maintaining a strong semiconductor industry allows the US to assert its technological leadership on a global scale and ensures that its defense systems and critical infrastructure remain secure.


As China’s semiconductor manufacturing capabilities continue to grow, the US is taking decisive steps to bolster its domestic semiconductor industry and preserve national security. The MOA between the Departments of Commerce and Defense, in conjunction with the CHIPS and Science Act, demonstrates the US government’s commitment to remaining at the forefront of semiconductor production. By investing in domestic capacity and ensuring coordination between critical departments, the US aims to stay ahead in the race for technological superiority and maintain its position as a global leader in the semiconductor industry.

Editorial Team
Editorial Team
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