Tariffs fallout: The US will struggle to take on Asia over chips

America is trying to create a chip industry through isolation and protectionism, when what allowed it to emerge in Asia is the opposite: collaboration.

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The US has "dropped the ball" on chip manufacturing over the years, allowing China and other Asian hubs to steam ahead. So said Gina Raimondo, who at the time was the US Commerce Secretary, in an interview with me back in 2021.

Four years on, chips remain a battleground in the US-China race for tech supremacy, and US President Donald Trump now wants to turbocharge a highly complex and delicate manufacturing process that has taken other regions decades to perfect.

He says his tariff policy will liberate the US economy and bring jobs home, but it is also the case that some of the biggest companies have long struggled with a lack of skilled workers and poor-quality products in their American factories.

So what will Trump do differently? And, given that Taiwan and other parts of Asia have the secret sauce on creating high-precision chips, is it even possible for the US to produce them too, and at scale?

https://www.bbc.com/news/articles/cd9ljwgg9y0o

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