Semiconductor industry and market
Which is an appropriate main reason governments are providing large-scale support to the semiconductor industry?
- ABecause demand for semiconductors has disappeared
- BTo shrink the semiconductor industry
- CBecause semiconductors have become strategic goods essential to the economy and national security, and domestic supply chains need strengthening
Show answer and explanation
Answer: C. Because semiconductors have become strategic goods essential to the economy and national security, and domestic supply chains need strengthening
Semiconductors are indispensable to every industry and to defense, yet manufacturing is concentrated in particular regions, so the risk of supply disruption has come to be recognized. Starting with the US CHIPS Act, Japan, Europe and others are providing large-scale support for attracting fabs and for research and development.