Semiconductors are important not only to Michigan and the automotive industry but also to the nation as a whole. Essential equipment like semiconductors (and others) help ensure the rest of the system is functioning. When they are limited in supply the integrity of the entire production chain becomes questionable. While we may have outsourced much of that and didn't keep our eye on our own national security issues we do have an opportunity to change that trajectory. With cluster development I believe we can put semiconductor experts and leading US/International companies together to start an innovative build; the same can be said for other essential industries (i.e. cluster related in competencies, resources, and skill.) I think my Delta County Michigan Transaction Model for Cluster Development might be of some use. Invest R&D SubFactors MultiCluster DC Shipping.
Government/White House will now be investigating the semiconductor supply chain to discover any issues that might be slowing down production and its wider supply network; vertical and horizontal (i.e.MI auto). What might be helpful is to draw a map of that supply chain and then create multiple linkages (alternative transaction chains) around bottlenecks to better ensure adaptability if any aspect of the chain goes out (perhaps a 2 week maximum revamp time matched with at least 2 weeks of back supply in storage/warehouse. Any number is ok...as long as it covers the revamp time.).
Furthermore, a certain amount of essential materials could be produce in the "Americas" (US CAN MX, South America) in a regional effort to protect production capacity (Maybe MX could help us with the border crisis a little if we make a good faith effort to draw back some of the low cost labor manufacturing from Asia to there. Remember we want to price out our competitors in all of the pricing brackets. New innovative products lead the market but then become part of low cost manufacturing as novelty wears off. Generating revenue throughout more U.S. based companies during the product life cycle can be helpful in maximizing tax advantages. Maybe? 🤔). Where we are over reliant on outside/foreign resources (We should have a balance.) we might consider thinking about developing alternative designs to create multiple paths in technology development lines that could open up new possibilities to unknown technologies in the future. We are in the process of innovating our nation and thus should consider new ways of doing business and maintaining national competitive position. Global Supply Chain, Systems Thinking, System Think Strategy, Does US Need Shorter Supply Chain?, Cross Structure Synergy Physical/Virtual
While it may not seem like it COVID taught us to deal with our outsourced capacity in order to diversify our sources and be able to ramp up American businesses when needed (better now then in 10 years where our available national resources options are more limited)
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