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Semiconductors: U.S. Industry, Global Competition, and ...

Semiconductors: Industry, Global Competition, and Federal Policy October 26, 2020 Congressional Research Service R46581 Congressional Research Service SUMMARY Semiconductors: Industry, Global Competition, and Federal Policy Semiconductors, tiny electronic devices based primarily on silicon or germanium, enable nearly all industrial activities, including systems that undergird technological competitiveness and national security. Many policymakers see strength in semiconductor technology and fabrication as vital to economic and national security interests. The semiconductor industry dominates many parts of the semiconductor supply chain, such as chip design.

Although China’s wafer fabrication is at least a generation behind the global industry in technology, it appears to be catching up through foreign technology acquisition, collaboration, and transfer. This includes the use of joint ventures, licensing agreements, U.S.-led open source technology platforms for chip design,

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