July 1982 · National edition

Commerce

Chip Manufacturing: The Bipartisan Habit Of Selective Memory

A Commerce desk reading of chip manufacturing, filed 1982-07.

From the file. Written for the paper dated July 1982. Opened in the public stacks July 14, 2026.

In the heated atmosphere of 1982, the chip manufacturing industry stands at a crossroads, with both sides of the political aisle exercising a curious habit of selective memory when addressing the challenges and opportunities facing this critical sector.

Altair Computer Ad August 1975
Altair Computer Ad August 1975. Photo: MITS staff via Wikimedia Commons

What’s at Stake

As the world rapidly moves towards an increasingly technological future, the semiconductor industry remains a linchpin in the American economy. With applications spanning from defense to consumer electronics, the stakes are undeniably high. Yet, both the left and right seem to be playing a dangerous game of political football, focusing on their own agendas while neglecting the root causes of our current challenges.

The Right’s Oversight

On one side, we have the right, which often champions free-market principles and the notion of minimal government intervention. However, this fervor for deregulation has led to a notable neglect of the long-term investment required to bolster domestic chip manufacturing capabilities. The rhetoric often revolves around market forces, yet one cannot ignore the stark reality: the U.S. is losing ground to countries that are willing to invest heavily in infrastructure and research.

Grocery store at 2601 Yesler Way in the Central District, Seattle, Washington, U.S., circa 1980.
Grocery store at 2601 Yesler Way in the Central District, Seattle, Washington, U.S., circa 1980. Photo: Seattle Municipal Archives from Seattle, WA via Wikimedia Commons (CC BY 2.0)
"A thriving semiconductor industry requires more than just a ‘hands-off’ approach; it needs strategic investment and foresight."

The conservative camp’s selective memory conveniently overlooks the significant role of government funding in fostering innovation and maintaining competitiveness. While they often tout the success stories of Silicon Valley, they neglect the fact that many of these advancements were made possible through early government support in research and development. The idea that the market alone will solve all problems is not only naive but dangerous.

The Left’s Blind Spots

Conversely, the left has its own set of issues, frequently clamoring for more regulation and government oversight without providing a clear vision for how this would enhance the chip industry. The focus often lies on labor rights and environmental concerns, which are indeed crucial, but a singular focus can stifle innovation and growth. By emphasizing regulation over the need for competitive advantages, the left risks alienating the very innovators they seek to protect.

"Innovation requires a delicate balance; too much regulation can stifle the very creativity that drives the industry."

The left’s selective memory seems to ignore that the semiconductor industry thrives on agility and the ability to adapt quickly to market demands. By placing undue burdens on companies, they may inadvertently hinder the growth and transformation necessary for America to maintain its status as a global leader in technology.

A Call for Unity

It is time for both parties to step away from their echo chambers and confront the reality that the future of chip manufacturing cannot be secured through partisan bickering. A comprehensive approach that combines strategic government investment with a commitment to fostering a robust regulatory environment is essential. Both sides must acknowledge their past oversights and work towards a common goal: a thriving semiconductor industry that can meet the demands of the future.

International Competition

The international landscape is changing rapidly. Countries like Japan and South Korea are pouring resources into their semiconductor industries, creating a competitive environment that the U.S. cannot ignore. The U.S. must not only focus on maintaining its existing advantages but also on developing new capabilities that will ensure its place at the forefront of innovation.

Moving Forward

As we navigate the complexities of the semiconductor landscape, it is imperative that we move beyond selective memory. Both the left and right must recognize that the health of the chip manufacturing sector is a shared responsibility. By fostering an environment that encourages innovation while addressing the necessary regulations for safety and labor rights, we can lay the groundwork for a robust and competitive future.

The bipartisan habit of selective memory may serve short-term political goals, but it ultimately jeopardizes the long-term interests of our nation. A collaborative approach that embraces both investment and regulation will be the key to ensuring that the semiconductor industry remains a cornerstone of the American economy.


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