The United States warns of a huge recession if they lose access to semiconductors

There is a reason the United States is willing to pour so much money into the CHIPS Act, and that is because access to semiconductors is crucial to sustaining any economy, and any country, that aspires to remain one of the great world powers. In fact, we saw recently that the sanctions imposed on Russia caused it to return to a kind of technological “Stone Age”since you will not be able to access advanced semiconductors.

In recent months, the possibility of China deciding to invade Taiwan has sounded loud, something that would clearly be a disaster, since could totally or partially limit Western access to semiconductors, and could increase the risk of a Third World War. On the other hand, even if there were no large-scale war, the Secretary of Commerce of the United States, Gina Raimondo, is clear that the consequences would be disastrous, and that the country would suffer an immediate and deep recession.

These comments come at a crucial moment, since the United States continues to work to carry out the CHIPS Act, a project that for the moment has been closed with a favorable vote in the Senate from 64 to 32. It would be interesting to listen to those 32 senators who have voted against, and see what options or alternative solutions they put forward.

Bearing in mind that 90% of the most advanced chips used in the world today come from TSMC, a company based in Taiwan, and appreciating the importance of semiconductors both in the economy and in today’s society, I think it is clear that the words of the Secretary of Commerce of the United States make a lot of sense. I believe that the CHIPS Act will eventually succeed, although for that must have the approval of both chambers (House of Representatives and Senate).

If the United States decides to continue slowing down the passage of the CHIPS Act, or if it ends up canceling it, It would almost be like shooting yourself in the foot.. With the current situation, and seeing the trend of the economy and of different sectors, the importance of semiconductors will only grow in the coming years, so guaranteeing access to them is essential for any power. That is why I believe that Europe should also strengthen its investments in this regard.

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