Amid worries about vulnerability of semiconductor supply in China and Taiwan, Washington seeks to halt migration of chip making overseas
American leaders have long trusted in private markets rather than the federal government to pick the economy’s winners and losers, shunning the industrial policy popular with France, Japan and others.
Not any more. President Biden and both parties in Congress have begun edging into industrial policy, with semiconductors a key testing ground. In January Congress enacted legislation to match state and local incentives for new semiconductor fabrication plants (fabs), and bankroll extensive new research, development and training.