United States and European Union Expand Chip Manufacturing

Abstract

This case examines the steps that the United States and the European Union are taking to mitigate the chip manufacturing shortage that has hobbled global supply chains since the start of the coronavirus pandemic. These steps include public and private funding for manufacturing, tax incentives, and mega-site factories to facilitate the move toward “digital sovereignty” as these regions attempt to extricate themselves from expensive, slow, and politically fraught supply chains. Students are asked to assess what this means for domestic manufacturing, supply chains, labor, and consumers.

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