KEY TAKEAWAYS

▪ The semiconductor sector constitutes one of today’s most important industries, providing the core technology that powers the modern digital world and spurs innovation and productivity across virtually every sector of the economy.

▪ The increasing expense, complexity, and scale required to innovate and manufacture semiconductors means that no single nation or enterprise can go it alone. In the face of challenges from China, allied cooperation in semiconductors is critical.

▪ Successful semiconductor innovation depends on scientists, researchers, and engineers working together internationally across companies, universities, government agencies, research institutions, and public-private research consortia.

▪ Each segment of the global semiconductor value chain has, on average, enterprises from 25 countries involved directly, and enterprises from 23 countries in support functions.

▪ Some nations have focused on building their domestic semiconductor ecosystems, but the U.S. industry’s track record of success shows how to effectively leverage global supply chains for mutual benefit.

▪ Countries that would seek self-sufficiency in the sector, especially through unfair mercantilist means, risk inflicting considerable damage on the industry, slowing global semiconductor innovation.

▪ The United States should increase funding for collaborative, pre-competitive R&D and incentives for greater domestic production.