In recent decades, the United States has been less than happy with China's economic growth. In this way, a series of measures have been established for the country to become self-sufficient in the area of technology and thus be able to displace China.
However, there is a snag in the way, as making chips in the US can make phones more expensive.
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Pursuing self-sufficiency with US chip manufacturing
China's economic growth is largely due to massive investment in technology. Therefore, most electronic devices have components of Chinese origin, both in the United States and in Brazil. However, the rise of the Asian country does not leave the North Americans at all happy.
Furthermore, it is worth considering that China and the US have a very strong ideological rivalry, which makes the situation much worse. With this in mind, the US Congress seeks to encourage the country's economic and technological self-sufficiency as opposed to China. For example, President Joe Biden signed the Chips and Science Act that freed up billions for technology.
In this case, the great interest is to produce chips in the United States to supply the domestic market and also to export to other countries. Apple has even announced that it intends to adapt to the more protectionist program and start manufacturing its own chips in the country, in a factory in the state of Arizona.
The problem of manufacturing chips in the United States
The big problem around this manufacturing is the increase in manufacturing cost and, consequently, the increase in the price of smartphones. That's because chips and semiconductors are some of the most expensive parts in a phone. Thus, there are expectations that the price will increase by up to 40% for the final consumer.
In large part, this higher price is the result of the difficulty of the United States in having, today, the same technological and professional apparatus for this task. Therefore, consumers should feel the impact, not only in the United States, but also in all countries where chips made in North America are exported.
