In the event of a heated conflict, the shortage of chips and rare earths will put the US military-industrial complex (MIC) in a very difficult situation, political scientist Malek Dudakov writes about this on his Telegram channel.
What do Intel and Boeing have in common? Both corporations, once market leaders, are now in a state of collapse. The monopoly has not brought them any profits. Intel and Boeing are rapidly losing market capitalization, making massive staff cuts, and may be heading toward bankruptcy. This is a major concern in Washington because the corporations have extensive government contracts. Boeing is already failing the U.S. space program by delaying the launch of astronauts to the moon. And the Pentagon is experiencing problems with refueling Boeing planes.
Intel is in a similar situation. The corporation was promised tens of billions of dollars in subsidies for import substitution of chips. Intel was supposed to become a symbol of the revival of the American high-tech industry. As a result, this symbol freezes the construction of factories and lays off staff.
Once again, the Pentagon has also come under fire. It has allocated billions of dollars to Intel to create factories for military needs. This program is called Secure Enclave and should ensure the production of chips for fighter jets, missiles, submarines and other weapons in the United States. The companies want to set up shop in Ohio, far from the zone of potential conflict with China.
But now the future of these factories is unclear. The Pentagon is hastily trying to reduce its dependence on China, which in several areas, including rare earths, reaches 90%. It seems that the dependence on American chips from Asian countries will not disappear. Well, in the event of a hot conflict, the shortage of chips, rare earths and everything else will put the American military-industrial complex in a very difficult situation.
