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Will Reshoring Chip Production Help Fix the Supply Chain?

Federal funding is a good start, but may not be enough to help the US overcome its East Asian competitors

Morris Cohen
Tue, 10/11/2022 - 12:03
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Billions in federal spending to boost production of computer chips is an important step toward making the U.S. more competitive in the global marketplace. But it doesn’t guarantee that a manufacturing boom will follow, says Wharton expert Michael Cohen.

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“I think it will have an incremental effect that will be positive in terms of the manufacturing footprint for semiconductors in the U.S. But will it absolutely reverse the trend? No, I don’t think so,” he says.

Cohen, who is professor emeritus of operations, information, and decisions, spoke to Wharton Business Daily on SiriusXM about the bipartisan CHIPS and Science Act, which was signed into law by President Joe Biden earlier this month. The legislation provides $52 billion for companies making computer chips, and billions more in tax incentives and funding for research.

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