The US Needs Two Decades To Gain Chip Independence, Says Nvidia CEO

Will Continue To Rely on China!

In order to gain independence in chip manufacturing, the United States has started to distance itself from relying on countries like Taiwan and China. However, this is just the beginning, and the journey ahead might be long and hard.

According to Nvidia CEO Jensen Huang, it may take the United States ten to twenty years to break free from its dependency on nations like China and Taiwan in the chip manufacturing industry.

Nvidia CEO

In his speech at the New York Times Deal Book conference, he emphasized how difficult it will be to achieve supply chain independence in this industry over the long run.

The nature of the semiconductor industry relies on sourcing materials from different parts of the globe, which makes it a challenging industry for a country like the United States or others.

Jensen Huang also admitted that total self-sufficiency is still a long way off despite notable advancements in the industry. The semiconductor industry in the US is currently being influenced by major companies like Samsung, Intel, and TSMC, which are setting up large-scale production facilities.

The goal of the US government’s large investments is to increase the capacity for domestic manufacturing. Intel, for example, has invested a large sum of its budget in both the US and Europe for the construction of new advanced manufacturing facilities.

Meanwhile, Micron expects to create 3D NAND and DRAM memories in the US, a first for the business. While the recent sanction on China might slow down its growth in Chip manufacturing, countries like Europe and the United States still have a long way to go. Therefore, it will take some time for such a change.

For example, Taipei, the company’s home base, will continue to supply raw materials for TSMC’s proposed facility in Arizona, which is scheduled to open by 2025. As such, it is clear that achieving chip independence is a difficult and protracted process that needs cooperation, investment, and strategic planning.

Gaining independence could result in major benefits for national security and technological leadership, even if the US confronts enormous obstacles in restructuring its semiconductor supply chain.

Because of these benefits, CEO Jensen Huang believes that such investments are worth it, even if they require up to two full decades.

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