China's ban against a U.S. microchip maker may actually free up capacity here in the states, but it still doesn't solve the shortage moving forward.
Alan Davis is CEO of i5 Services. He says the ongoing supply chain issues from COVID really highlight the need to increase production here in the U.S.
"There are definitely U.S. companies who can ramp up production and meet some of the current demand. China's proposed sanctions on Micron in Idaho actually may free up some production capacity at Micron as well," he says.
Davis points out that everything from your cell phone to defense missiles require a computer chip, and we've seen delays within the auto industry as well. He believes we can retrofit some factories to increase production long before any new semiconductor plants are built.
Neither side benefits from the political posturing going on.
"Some of the higher end chips, particularly those used for (artificial intelligence), a lot of them are produced in the U.S. So China does have a dependence on us for some of those high-end chips, and halting our production to China would also cause a significant problem for them."
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