Global Chip Shortage Underscores Need to Diversify US Supply Chain China’s Taiwan intimidation and its domestic semiconductor investment threaten US tech sector Commentary The continuing global semiconductor shortage has highlighted the United States’ dependence on a fragile global supply chain of chip manufacturing that’s concentrated in Asia. Amid this environment, China’s increasingly combative stance against Taiwan—along with its massive domestic investment into chipmaking—is a key risk to the security of America’s chip supply. The worsening global computer chip shortage has been destructive to several industries and hurt consumer pocketbooks. While some U.S. automakers saw output disrupted late last year due to chip shortages; more recently, they have resumed production, just without certain “smart” features that require such chips. The domino effect is a lower supply of new cars, which drives up prices. Japan’s Sony Corp. recently blamed a lack of supply of its PlayStation 5 console on production stoppages due to a shortage of chips.