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Economic concept
Industrial policy
Government action intended to shape the location or capabilities of production.
All conceptsSee it at work
Why did semiconductors become a national security issue?
Advanced chips and manufacturing tools enable AI, communications and weapons, while production depends on a specialised, concentrated chain. Governments therefore treat access, denial and domestic capacity as security instruments.
See it at workWhy are governments subsidising semiconductor factories?
Semiconductor plants can support innovation, skilled supply networks and access to strategically important components. Governments subsidize them because firms do not capture all these public benefits, but subsidy races can waste money when every country targets the same capacity.