A different version of the CHIPS ACT was passed by the US Senate and Congress to shield and protect the country’ semiconductor supply chain
From Russia's onslaught on Ukraine, several conclusions are speculations are appearing, while many are yet to be looked upon. One such insight is that the war has highlighted the benefits of the strategic importance of semiconductors. These diminutive chips provide massive warfighting benefits to the forces of the Ukraine, which at the same time, reminded the Americans of the urgent need of the hour to protect and shield their own semiconductor supply chain. In the war so far, the security forces of the Ukraine have utilized inexpensive and tiny weapons like Stinger anti-aircraft missiles, Switchblade drones, NLAW anti-tank missiles, and Javelin to demolish scores of Russian armed tanks, jets, helicopters, and personnel carriers.
Each of the Javelin, NLAW, Stinger, NLAW, and Switchblade costs half of the price of a jet or tank that has thrown a tough challenge to the Russian forces in treasure and blood. According to an exclusive report of The Hill, the advantages and triumphs of the Ukraine would not have been possible without top-notch semiconductors, which powers imperative battlefield weapons such as the guidance system loaded in every missile. For instance, one Javelin is equipped with 250 sophisticated microchips, which along with Stinger dates back to the Reagan defense modernization in the 1980s. During the Reagan’s Cold War, the strategy was to protect the US's semiconductor supply chain and utilize their technology advancement over Moscow.
According to the experts, the Russian forces failed to counter these Ukrainian weapons because the Kremlin was in a huge shortage of semiconductors because a couple of years back, the US barred the export of these items to Russia. Now, as Russia is devoid of having its own cutting-edge chip manufacturing unit and without imports, Russian forces failed to reach their destination. Rather they have used the outdated machinery and ‘dumb-boms’. The ;point to be noted is that the supply chain is dependent on a huge capital-intensive facility, which cannot be built that easily. Another harsh truth is that important European countries like Italy and Russia now regret that they have made themselves so dependent on Russian oil and gas. The disparaging supply chain gullibility for the Americans is deeply rooted in semiconductors.
Currently, it is Taiwan and not Russia that is leading the semiconductor supply chain rat-race, which is often attacked by Beijing. The conclusion drawn from the Russian-Ukrainian scuffle forced the US house of Congress to pass the much-awaited Semiconductor Bills. Now, to assist the American economy in terms of manufacturing and design of semiconductors, a different version of the CHIPS ACT was passed to shield and protect the country’ semiconductor supply chain.
The escalating fear from China had already energized and aroused many members of the Congress but final passage and funding remain subject to the vicissitudes of a House-Senate conference committee, according to The Hill. The Russian Ukraine tussle undermines the request to finish that task.
