SIA report: the US chip industry's dependence on China runs deeper than the headline numbers

A new SIA report, published on 9 Oct 2026 according to the South China Morning Post, maps the US chip industry’s supply chain. By country of manufacture, China accounts for about 5% of the equipment and materials supplied directly to the US chip industry, but for over 90% of certain rare earths needed in chipmaking (Reported, SIA via SCMP).

Why the headline figure understates it

The figures cover only what the US chip industry buys directly. Suppliers often rely on production chains outside their home country, and the report found additional exposure to China further upstream, in raw materials and components. It names gallium, used in compound semiconductors, and tungsten, used in chemicals for thin-film deposition, as examples.

The report’s recommendations

SIA recommends stockpiling priority inputs and developing alternative supply with allies. According to the report, capacity for some materials could take a decade or more to build, followed by three to four years to qualify new suppliers and materials.

Caveats and what to watch

This article relies on a secondary report; the original SIA report and its exact title are still to be confirmed. Watch for the full report and its data tables.