Limitations on Chip Production: What America Can Do

Primers & Fact Sheets
Written By Heberto Limas-Villers

There have been bipartisan efforts for years to ensure that the United States does not need to rely upon foreign chip manufacturers. But, as Senior Fellow Heberto Limas-Villers argues in a new memo, even after major legislation like the CHIPS Act, America is still lagging in domestic chip production.

Part of this is due to the slow turnaround time for new chips, anywhere from 12 to 24 months. But there are deeper concerns, including permitting restrictions and some trade policies.

To enhance and strengthen domestic production, the memo argues for the following changes:

  1. Extend the Section 48D construction-start deadline.

  2. Pass the United States–Taiwan Expedited Double-Tax Relief Act.

  3. Create a capital-equipment installation visa.

  4. Exempt manufacturing equipment and construction inputs, or stand up the promised offset.

  5. Fund the back end, not just the fab.

  6. Treat electricity as chip policy.

Read the full memo by clicking below:

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Heberto Limas-Villers

Heberto Limas-Villers is a co-founder at a geopolitical advisory firm called SkySeal Global, where he focuses on East Asia and the U.S. for market entry, due diligence, and geopolitical analysis. He previously was an intelligence analyst covering Latin America and the U.S., a management consultant at Bain and Company, and an investment banker at Goldman Sachs. 

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The Expediting Act