United States and European Union Expand Chip Manufacturing


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.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

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