After Hours: The Problem With Our Asian Chip Addiction (From the Archives)

Summary

Full Measure After Hours: The Problem With Our Asian Chip Addiction

Episode Release Date: July 10, 2025
Host: Sharyl Attkisson

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Introduction

In this archival episode of Full Measure After Hours, host Cheryl Akison delves into the critical issue of America's heavy reliance on Asian-produced computer chips. Cheryl explores the geopolitical and economic implications of this dependency and highlights the burgeoning efforts in Europe, particularly in Germany's Silicon Saxony region, to create a more balanced and secure semiconductor supply chain.

America’s Dependence on Asian Chip Production

Cheryl begins by outlining the stark statistics of global chip manufacturing: approximately 80% of crucial computer chips are produced in China, with the remaining 10% each in Europe and the United States. She emphasizes the vulnerability this imbalance poses, especially in light of the ongoing tensions between Taiwan and China—a region responsible for two-thirds of the global chip supply.

“[00:30] Cheryl Akison: It turns out that about 80% of these crucial chips are made in China, about 10% in Europe and about 10% in the U.S. Now, Taiwan, which is considered a Chinese region, makes two thirds of the global supply. With current tensions between Taiwan and China, the chip making imbalance poses national defense concerns here.”

Silicon Saxony: Europe’s Answer to the Chip Shortage

To address this dependency, Cheryl traveled to Dresden, Germany, to investigate Silicon Saxony—a major hub for semiconductor production. She interviews Thomas Kralinsky, Saxony's State Secretary for Economic Affairs, who provides insight into the region's vibrant tech ecosystem.

Growth and Expansion in Silicon Saxony

Kralinsky discusses the historical foundation of Dresden’s technology sector, tracing back to East German times, and emphasizes the region's commitment to digitalization and reducing its climate footprint.

“[04:28] Thomas Kralinsky: We have very active production sites like Bosch, and firms are expanding their facilities because we need more chips. Europe is aiming for greater sovereignty in chip production, and Dresden contributes about one third of Europe's chip output.”

He highlights recent expansions, including investments by major companies like Bosch and Intel, and underscores the importance of local universities and research institutions in fostering innovation and supporting small to medium enterprises within the tech community.

Attracting Investment and Building Infrastructure

Kralinsky outlines the state's strategy to attract more businesses through incentives, infrastructure development, and creating an appealing living environment to retain talent.

“[06:46] Thomas Kralinsky: We provide incentives, develop infrastructure, and ensure sustainable growth to attract and support companies in the tech industry.”

Intel’s Strategic Investments in Europe and the United States

Cheryl transitions to discussing Intel’s significant investments aimed at mitigating the chip shortage and reducing reliance on Asian suppliers. She speaks with an Intel representative based in Berlin, who elaborates on the company’s expansive plans.

Understanding Chip Importance and Shortage Causes

The Intel representative explains the fundamental role of semiconductors across various industries and the factors that led to the recent chip shortage, primarily the unforeseen surge in demand post-pandemic.

“[09:07] Intel Representative: The pandemic disrupted supply chains, leading to unexpected spikes in demand, particularly in the automotive sector, which struggled to keep up with production needs.”

The CHIPS Act and Its Impact

The discussion turns to the CHIPS Act, highlighting how it supports the semiconductor industry through government backing and financial incentives, fostering a more resilient and diversified supply chain.

“[10:10] Intel Representative: The CHIPS Act provides crucial support not just for Intel but for the entire semiconductor ecosystem, ensuring sustained growth and innovation in digital technologies.”

Balancing the Global Supply Chain

Intel aims to achieve a more balanced global supply chain, with plans to increase chip production within the United States and the European Union from the current 20% to an envisioned 50% split with Asia.

“[11:02] Intel Representative: Our long-term goal is to balance the supply chain to 50% Asia and 50% between the U.S. and the EU. The EU aims to double its chip production by 2030.”

Mega Investments and Future Plans

Intel is undertaking its most significant expansion yet, with substantial investments in new manufacturing sites across Ohio, Ireland, Oregon, New Mexico, Arizona, and notably, Magdeburg, Germany.

“[12:00] Intel Representative: We are investing billions in new and existing facilities, including a $20 billion project in Magdeburg, Germany—the largest initiative Intel has undertaken to date.”

Choosing Magdeburg: Strategic Decision-Making

The Intel representative details why Magdeburg was selected over other candidates, citing excellent collaboration, ample space for mega factories, and robust infrastructure as key factors.

“[14:07] Intel Representative: Magdeburg met all our criteria, including excellent collaboration, ample space, and strong infrastructure, making it the ideal location for our new mega factory.”

Ensuring Future Supply Chain Resilience

Cheryl and the Intel representative discuss strategies to prevent future shortages, emphasizing ongoing investments and the establishment of new manufacturing sites to enhance production capabilities and supply chain flexibility.

“[12:09] Intel Representative: Through our heavy investments and new manufacturing sites, we aim to create a more resilient supply chain that can better withstand future disruptions.”

Conclusion

Cheryl concludes the episode by summarizing the critical steps being taken to reduce America’s reliance on Asian chip production. She underscores the importance of strategic investments, government support through initiatives like the CHIPS Act, and the collaborative efforts in regions like Silicon Saxony to build a more secure and self-sufficient semiconductor industry.

“[15:07] Thomas Kralinsky: Not only is Intel making a $20 billion investment in Germany, but similar initiatives in Ohio and other U.S. states are pivotal in addressing the chip shortage and ensuring national security.”

This comprehensive exploration highlights the multifaceted approach required to tackle the complex issue of semiconductor dependency, showcasing both European and American efforts to secure a more balanced and resilient supply chain for the future.

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Notable Quotes:

• “[00:30] Cheryl Akison: It turns out that about 80% of these crucial chips are made in China…”
• “[04:28] Thomas Kralinsky: We have very active production sites like Bosch…”
• “[10:10] Intel Representative: The CHIPS Act provides crucial support…”
• “[14:07] Intel Representative: Magdeburg met all our criteria…”
• “[15:07] Thomas Kralinsky: Not only is Intel making a $20 billion investment in Germany…”

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For More Information:

To watch the full report aired on Sunday, November 13th, visit CherylAkison.com and navigate to the Full Measure tab for TV listings and live streaming options. Additionally, listeners can explore more content on FullMeasure.News.

Transcript

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[Thomas Kralinsky]

Hi, everybody. Cheryl Akisson here. I hope you enjoy this special from the archives edition of Full Measure After Hours. Hi everybody. Cheryl Akeson here. Welcome to another edition of Full Measure After Hours. Today, why it's so important to break ourselves from our Chinese chip addiction. I went all the way to Germany to profile a major movement. It has to do with our unhealthy addiction to Chinese chips. And by that I mean computer chips. We need and use them every day in our cars, our smartphones, all kinds of devices. And the supply chain problems revealed during the COVID shutdowns. They exposed our unwise reliance on an adversary for, for something so important. Sunday on full measure. That's November 13th. I'll have my full report on this topic. It turns out that about 80% of these crucial chips are made in China, about 10% in Europe and about 10% in the U.S. now, Taiwan, which is considered a Chinese region, makes two thirds of the global supply. With current tensions between Taiwan and China, China controlling the island chain of Taiwan, the chip making imbalance poses national defense concerns here. Anyway, I went to Dresden, Germany, to visit a region known as Silicon Saxony, where they're ramping up things in a big way. First we'll hear from Thomas Kralinsky, Saxony's State Secretary for Economic Affairs.

[Monica Lishke]

Can you characterize how active things are in terms of the tech industry in Saxony now? What's happening right now?

[Unnamed Representative from Saxony]

We are like a rather small state, but we have a very active scene when it comes to technology. We have like, we call it Silicon Saxony. And it comes actually already from the communist East German times where we had productions and development of semiconductors here as well. This was sort of the base for everything what came like in the last 30 years. I mean, we live in a very sort of challenging times. We have to readjust the way we live, the way we work, the way we drive, the way we learn, because everything has to do with, with digitalization and it has to do with reducing our footprint our climate footprint. And in order to do it, in order to adjust to climate change, we have to think about new industries like mobility, like batteries, like renewable energies. And for all this you need semiconductor. So to have here in Dresden a scene or a branch which centers around technology and microelectronic is a cornerstone for everything else, what is there in the modern world. And we are very proud to have it here and we take care of it.

[Monica Lishke]

I'm under the impression there's a lot of expansion of production going on in terms of microprocessing chips and this sort of high tech business. Is there a great deal of expansion and building going on now in that arena?

[Unnamed Representative from Saxony]

We had in the last couple of years already some expansion. For example, Bosch, which is like the newest production site we have. But all of the firms are thinking, or on the way of thinking of expanding their facilities. We had intel that just decided not to come to Dresden, but to Magdeburg, which is just like 200 kilometers away from here. And all of them are thinking about expanding their production because we need more chips. And I think Europe is thinking more about being sovereign when it comes to producing chips. We have about one third of the European production of chips here in Dresden, which is quite a lot, but on a worldwide scale. It's not too much and it can be more.

[Monica Lishke]

What does it mean to Saxony in particular to have more focus on shipbuilding capacity in this area, more attention and.

[Unnamed Representative from Saxony]

More expansion of means that we have to look after our universities. We have a very good sort of elite university, technical university here in Dresden, which is very important for the tech industry. We have to have a focus in research and development. That means we look after as a state, we also look after their needs and we try to build or support networks within the. Within the community. Silicon Saxony is a network in itself, but we are sort of a part of it. And we also look and try to support enterprises, firms, little small, small and medium enterprises in particular, that they can develop as well. And sometimes they need a little support when it comes to research, development and these kind of things.

[Monica Lishke]

What sorts of things is the state doing to try to attract more business? Are they giving incentives and tax breaks, things like that?

[Unnamed Representative from Saxony]

We do indeed give incentives. We take care about developing infrastructure when it comes, for example, to roads or water supply, electricity supply. We try to speed up everything that has to do with administration. We also try to help or to build an environment that people come here in order that they like the area, they like the city. I mean, this is also important today. And the state is Playing an important role as well.

[Thomas Kralinsky]

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[Unnamed Intel Representative]

Can you explain what a semiconductor is or what is a chip and why it's so important?

[Cheryl Akison]

A chip is like a very small component. Usually we're embedded in a different system. I think the most prominent example is like a PC or notebook where you often also have the sticker intel inside and it's basically the BR of the overall device. But we're also like in data centers like the big servers weighing cars, we're in household goods. So it's like it's a very big, big range of products. But everything that's kind of technical helps to push further digitalization. There's a chip in it and the likelihood that's an intel chips is fairly high. And you can think of it as like the brain of the device.

[Unnamed Intel Representative]

And can you just for context, in a very short simple form if possible, explain why are we so. Why are we so short on chips now? What happened?

[Cheryl Akison]

So the pandemic happened and it's always hard to forecast the needs, what you really need. Sorry, it's always hard to predict a forecast. And when like the pandemic started spending went down, people didn't buy new cars or anything like that. And then when things opened up again, there was like huge splurge in spending. And this is what the economy didn't expect when it comes to car. Like people started to buy more cars because they wanted to avoid public transportation. So there was like a huge uptick in car manufacturing and they hadn't planned for it. So this kind of made it difficult then to supply. Supply the demand as it was not necessarily forecast.

[Unnamed Intel Representative]

The CHIPS act recently passed in the United States. Is there anything in the CHIPS act in the United States that benefits or will help intel in terms of producing more chips or producing more products in the United States.

[Cheryl Akison]

So we are heavily investing. So we're heavily investing in the United States and also in the European Union. And of course it helps us to have like strong government support and backing. But the CHIPS act, the US Chips act is for the overall industry. So it's really important, not just for us, but the overall industry and also the whole ecosystem, which is like kind of surrounding the semiconductor industry, to foster it, to support it financially in a certain way because it's an important device or it's an important part because everything becomes more digital. So this means we will be needing further and further and more and more trips in the future.

[Unnamed Intel Representative]

Would you say that there has been an over reliance in terms of what was wise economically, an over reliance on chips made in Asia?

[Cheryl Akison]

Well, we've seen unbalance in the global supply chain. So currently it's like 80% is being produced in Asia and 20%, it's like the split between the United States and the European Union. So it's 80, 20. So our long term goal within the industry is to kind of come to 50, 50. So 50% Asia and 50% then between the United. In the European Union. Also the European Union, they have very ambitious goal to double their chip production until 2030 from currently around 9, 10% to 20%. So the government like here in the European Union and also in the United States, understand how important semiconductors are and want to make sure that these small little processors are being also manufactured in the European Union and the United States.

[Unnamed Intel Representative]

In hindsight, nobody expected the chip shortage. But was there something that we can do now to ensure that's not likely to happen again?

[Cheryl Akison]

This is why we are investing. So these are like these heavy, heavy investments. We're talking billions and billions of investments we're making. So one part is like with a new site in Ohio, that's the first intel site manufacturing sites within 40 years. We're almost already also investing and expanding in existing manufacturing sites like in Oregon, in New Mexico or in Arizona. And when it comes to the European Union, we already have like a big manufacturing site in Ireland. This is being currently expanded. And then the other one is in Magdeburg in Germany, which is a greenfield site. So currently potatoes and wheat are growing there. And this is where we're planning to build, build a megafab.

[Unnamed Intel Representative]

Like in terms of Intel's growth, is this the biggest period of growth in some time?

[Cheryl Akison]

It's the biggest investments we've been making. So just for, as an example, so the site in Mark to book the initial investment in 17 billion euros, which is roughly 20, 20 billion dollars. And that's just one part of the overall investment. So the Ohio investment is a similar number. And then also the expansion into the different sides, it's usually 20, 40, 80, 80 billion. So roughly you can see like for two modules of an intel factory where chips are being manufactured, you could say it's an investment of $20 billion.

[Unnamed Intel Representative]

So are you saying, is this the biggest single initiative Intel's had?

[Cheryl Akison]

Yeah. Okay. It is.

[Unnamed Intel Representative]

All right. Anything else you want to add?

[Cheryl Akison]

I was wondering. So I did talk to Daniel also beforehand. Like, I don't know if this is of any interest, like why intel chose Markdeburg or why intel chose Germany. I know it was a big surprise for many because we're just.

[Unnamed Intel Representative]

Yeah, please.

[Cheryl Akison]

Very expensive.

[Unnamed Intel Representative]

Yeah.

[Cheryl Akison]

Country two Invest. It's not. It's not cheap.

[Unnamed Intel Representative]

Why Germany? Why this area in particular when it.

[Cheryl Akison]

When it's not cheap? So all in all, we had like, when we made the announcement that we're going to invest in the European Union, we had like 60 to 80 applications and all of this. Sorry, out of these 60, 80 applications, we chose Magdeburg. Magdeburg is the capital city of Saximianheit. It's not that far from. From Berlin. It's like one and a half hour train right away. And the main three reasons were like, it's people. So from the start, collaboration and communication was excellent. There's a lot of excitement that were coming. The second one was location. So we need huge space to build this factory. And the third one is infrastructure. So highways, waterways, and also like infrastructure around universities, research institute institutes, things like that.

[Unnamed Intel Representative]

Did these countries that were making a bid to get the factory promise accommodations or tax incentives or anything?

[Cheryl Akison]

So that's like a whole package. So we have a very thorough application process where we looked into all these kind of different things. Is there enough housing? If not, what can be done? Is there enough water supply? Is there enough electricity? Things like that. Is it sustainable? Sustainable electricity or power sources. So these things are part of the application process. And like Magdeburg ticked all the boxes. It's a wonderful city.

[Thomas Kralinsky]

Not only is intel spending $20 billion to build a mega factory in Germany, it's making a similar investment in Ohio, its first new manufacturing site in 40 years. And intel is expanding sites in Ireland, Oregon, New Mexico and Arizona. My full report on all of this again is Sunday, November 13th. To find out how to watch in your area, you can go to Cheryl Akison.com and click the Full Measure tab. You'll see the TV listings for times and days. You can also go to FullMeasure News on Sunday and watch it live at 9:30am Eastern Time right there online, or watch replays at FullMeasure News just about anytime afterward. If you like this podcast, I hope you'll share it and leave a great review, as well as check out my other podcast, the Cheryl atkison Podcast. And I can't leave this week without reminding you to visit the Cheryl Akisson Store by going to Cheryl Akkeson.com and clicking the store tab for products with cool slogans for independent thinkers. Slogans like do your own research, make up your own mind, think for yourself. Or I tested positive for critical thinking. It's time to start thinking about Christmas. And the proceeds from sales of the Cheryl atkison store benefit independent journalism. Do your own research, make up your own mind, think for yourself.