U.S. Trade of Semiconductors: Cross-Country Patterns and Historical Dynamics

to aggregate U.S. output. But over the past decade, they have been become critical inputs in the production of a wide range of goods, such as computers, toys, appliances, and automobiles. Because of their critical nature in the production process and the difficulty (or impossibility) of finding viable substitutes, semiconductor shortages have had important global effects. These dynamics have also affected foreign policy. In October 2022, the U.S. Commerce Department’s Bureau of Industry and Security instituted a new round of restrictions on U.S. exports of various semiconductor manufacturing technologies to companies in the People’s Republic of China.1 This measure, which followed a series of bans and controls throughout 2022,2 was put in place to guard against the potential use of these technologies in the advancement of military weapons. To illuminate the bigger picture, we use data from the U.S. Census to examine the aggregate dynamics of semiconductor trade and the degree of U.S. dependence on foreign inflows of semiconductors.3 We list the key countries from which the U.S. imports semiconductors and the major destinations of U.S. semiconductor exports, with additional focus on China and Taiwan. U.S. Trade of Semiconductors: Cross-Country Patterns and Historical Dynamics