THE ECONOMY & MAIN STREET • TRADE & MANUFACTURING
Your phone. Your truck. Your pacemaker. They all run on chips we don’t make here. Six years ago, the American trade deficit in semiconductors was roughly $60 billion a year. Manageable. Then the AI buildout hit, and imports went vertical. Today that deficit has ballooned to $546 billion a year — nine times what it was, and more than America ever spent on foreign oil, even when crude was $140 a barrel. Congress passed the CHIPS Act to fix this. Total allocation: $52.7 billion. The annual problem: $546 billion.
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It took America five decades to build its oil dependence — and six years to build an even bigger one in semiconductors.
