This paper is part of the project “Building a transatlantic technology bridge: challenges and opportunities," from the Istituto Affari Internazionali, funded by Fondazione Compagnia di San PaoloThe goal of this project is to analyze current initiatives that aim to strengthen and broaden transatlantic dialogue and cooperation on the challenges posed by technological development, with particular attention to digitalization and energy transition. In particular, the project will investigate to what extent existing cooperation initiatives can decrease transatlantic trade and technology-related tensions and support a common evaluation of the risks and opportunities deriving from technological development; favor a shared EU-US strategic and policy approach; and lay the ground for new joint initiatives to face the transatlantic partners’ main international rivals. 

Semiconductors are essential for the global economy, but recent supply chain disruptions and geopolitical tensions have highlighted new risks, leading to new policy approaches. US semiconductor strategy centres around three objectives. First, the funding provided through the CHIPS and Science Act is part of a larger push to strengthen domestic industry and manufacturing. Second, the US seeks to deny strategic adversaries of key technology through export controls. And third, it aims to secure the supply chains for critical technologies. The European and American semiconductor sectors are already tightly intertwined, and further coordination has occurred through forums like the Trade and Technology Council. But challenges remain, including the risk of a subsidy race. Further transatlantic cooperation on key aspects of these new industrial policies can ensure the realisation of shared objectives for a more resilient semiconductor sector.

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