Securing the Microelectronics Supply Chain: Four Policy Issues for the U.S. Department of Defense to Consider
Abstract
The ever-tightening financial constraints of semiconductor manufacturing have led to the business reality faced by U.S. consumers and leaders in 2021: The U.S. market share of global semiconductor manufacturing capacity has fallen from about 38 percent in 1990 to 12 percentin 2020 and is expected to decline to less than 10 percent by 2030. The growing realization of these economic trends and their implications for U.S. national and economic security has resulted in a national conversation and a growing chorus of academic, industry, and government stakeholders arguing for varying policy solutions. Out of this dialogue have emerged critical knowledge gaps that will hamper decisionmakers ability to make informed policy. We have identified four high-priority questions that should drive U.S. policy but that require additional data and insights: Why are supply chain risk management strategies necessary to mitigate microelectronics supply chain disruptions? Does the U.S. Department of Defense (DoD) need access to the latest generation of microelectronics, or will a lag of several generations be acceptable to ensure trusted and reliable access to manufacturers and supply chains? How can DoD create a coordinated effort to mitigate microelectronics supply chain risk? What is the appropriate mix of policy levers to promote a microelectronics technology ecosystem that is aligned with U.S. strategic goals? Although we recognize that this policy environment is rapidly evolving as new initiatives are announced and implemented and new data emerge, we believe that these four policy drivers will remain the foundation on which policy will be made over the long term. It is therefore vital to U.S. interests that the ongoing dialogue and policy conversations consider these four questions. This Perspective represents an initial attempt to explore these drivers and motivate future analyses.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 28, 2022
- Accession Number
- AD1161435
Entities
People
- Daniel L Gonzales
- Jared Mondschein
- Jonathan W. Welburn
Organizations
- RAND Corporation