US chips rely on Taiwan for advanced packaging

The United States faces a critical vulnerability in its artificial intelligence chip supply chain, primarily due to its dependence on Taiwan for advanced packaging processes. This crucial step, which involves assembling and connecting chip components, is heavily concentrated in Taiwan. Consequently, geopolitical risks and logistical challenges associated with shipping U.S.-made chips overseas for final assembly pose a significant threat to the domestic AI industry. Addressing this choke point is essential for ensuring the security and resilience of U.S. semiconductor manufacturing capabilities.