According to U.S. Treasury Secretary Janet Yellen, the US has to diversify its supply sources since it has grown excessively reliant on China for key supply chains, particularly those involving clean energy items.
Yellen reiterated her steadfast position that the United States does not seek to economically separate from China while speaking at a Fortune CEO event in Washington.
Despite not being “a strong believer” in industrial strategy, she claimed that the United States had watched for too long as other nations’ semiconductor industry grew thanks to significant subsidies.
Without a strong domestic semiconductor industry, the United States would face national security issues, she added, adding that last year’s Chips and Science Act will aid in reversing that trend.
For all intents and purposes, eliminating semiconductor production is not a wise plan for the United States, according to Yellen.