Where the U.S.’s Chip Strategy Is Still Falling Short

2026-04-28 · Source: Feeds - HBR.org · Field: Business & Management — Corporate Strategy & Leadership, Operations & Process Management · Depth: Fundamental Awareness, quick

Summary

The United States is investing billions into onshore semiconductor manufacturing, with new fabrication facilities, including a TSMC fab in Arizona, set to produce advanced chips. However, the U.S. supply chain remains incomplete due to a significant dependency on Asian countries for critical back-end processes. These processes include testing, cutting wafers into individual chips, packaging, and assembly, which are essential steps to transform processed silicon wafers into finished, packaged chips. This concentration of back-end factories in Asia creates a major dependency, despite the substantial front-end manufacturing investments being made within the U.S.

Key takeaway

For CTOs overseeing semiconductor supply chains, the U.S.'s continued reliance on Asian back-end processes for chip manufacturing presents a significant vulnerability. You should prioritize assessing and mitigating risks associated with this dependency, potentially by advocating for or investing in domestic capabilities for chip testing, packaging, and assembly to ensure a truly resilient supply chain.

Key insights

U.S. semiconductor strategy lacks back-end process independence despite front-end manufacturing investments.

Principles

• Supply chain resilience requires end-to-end control.
• Advanced manufacturing needs integrated infrastructure.

In practice

• Evaluate back-end process vulnerabilities.
• Incentivize domestic packaging and assembly.

Topics

• U.S. Chip Strategy
• Semiconductor Manufacturing
• Back-End Processes
• Supply Chain Dependency
• TSMC Arizona

Best for: CTO, Investor, Policy Maker, Executive, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Feeds - HBR.org.