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US Looks to Indonesia to Bolster Global Semiconductor Supply Chain

semiconductor supply chain

The United States government is partnering with Indonesia to explore opportunities to diversify the global semiconductor supply chain

On Monday, President Joe Biden met with his Indonesian counterpart, Joko Widodo, in Washington for the U.S.-Indonesia Comprehensive Strategic Partnership.

During the meeting, the two government heads committed to cooperating on the development of the semiconductor industry in Indonesia, among other initiatives.

“The United States views Indonesia as a partner in ensuring the semiconductor supply chain can keep pace with the digital transformation underway,” the Department of State said in a statement.

“This collaboration underscores the significant potential to expand this industry in Indonesia to the benefit of both the United States and Indonesia.”

As part of the initiative, the U.S. will send a delegation to assess the current semiconductor ecosystem in Indonesia by looking at the existing regulatory framework, infrastructure and workforce related to chip manufacturing.

In 2022, Biden signed the CHIPS and Science Act, which appropriated funding to boost the domestic production of semiconductors in the U.S.