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Does the US produce computer chips?

The short answer is yes. The US does produce computer chips. However, given the size of the market and the intense competition within it, this might come as a surprise to many people.

The US has historically been a major producer of computer chips. Intel Corporation alone accounts for nearly half of all semiconductor sales worldwide (according to the company’s 10-K filing with the Securities and Exchange Commission). And while Intel is not an American company per se (it is headquartered in Santa Clara, California), it was founded by Gordon Moore and Robert Noyce both Americans who were once affiliated with Fairchild Semiconductor.

At one time, companies like IBM, DEC and HP dominated the market for large mainframe computers. These companies produced all of their own hardware and software products in-house. This was necessary because they had no real competition; they controlled entire markets themselves (IBM was often referred to as “Big Blue” because it had such a dominant position in the industry).

However, over time technology has become more specialized and complex; smaller companies have entered what used to be very large markets offering specialized products that have become necessary components of larger systems (for example: graphics processing units).

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Last modified: July 29, 2022

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