US relies on microchips tested in China

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US Commerce Secretary Gina Raimondo said, on Thursday, that the US defense sector relies on foreign suppliers of advanced microchips, the great majority of which are tested in China.

During a speech at Georgetown University, Raimondo said, "Those weapons used by the United States military depend on a supply of chips that are currently not produced in America and the vast majority are tested in China." 

She further detailed that all of the United States' sophisticated defense capabilities - satellites, drones, hypersonic weapons, etc. - rely on advanced microchips.

The United States reportedly produces no sophisticated microchips, and 92% of its supply originates from a single Taiwanese manufacturer.

President Joe Biden signed an executive order in August 2022 to put into effect the $280 billion CHIPS and Science Act of 2022, which includes more than $52 billion in subsidies for US semiconductor makers under the pretext of challenging China's expanding technological prowess.

Read more: Microchip shortage causes $240 billion loss for US economy in 2021

#China puts its chip industry ambitions on hold as #Covid19 and financial strain impact progress. pic.twitter.com/UdeAg9idyv

— Al Mayadeen English (@MayadeenEnglish) January 6, 2023

Semiconductors, more commonly known as chips, are a highly pivotal component in the defense industry, especially as it shifts and takes a more modern approach that delves into the futuristic realms requiring advanced semiconductors, which are key in manufacturing many things, from computers to autonomous vehicles, and even hypersonic weapons. 

The US has also in recent months increased efforts to strengthen technological cooperation with countries including South Korea and Japan to create semiconductor supply chains that bypass China.

Read more: IMF: US curbs on Chinese chip technology harm global economy