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

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

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.

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…”

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.