Supply Chain Research

The U.S. Department of Defense is considering a change in procurement rules such that only U.S.-made semiconductors can be used in military purchases. It has reportedly pressured TSMC to shift production to the U.S. to compensate. That comes against the backdrop of China’s rise as a global exporter of semiconductors – exports in 2019 jumped 21.4% year over year to reach $101.6 billion compared to Taiwan’s $100.0 billion. Shifting production and the related downstream supply chains is a multi-billion dollar, multi-year proposition. Taiwan’s exports of semiconductors to the U.S. represente...