Hidden beneath AI chips, Chinese-made circuit boards raise national security concerns in U.S. The U.S. faces national security risks due to its heavy reliance on China for printed circuit boards (PCBs), crucial components for AI technology. Concerns include the potential for malicious components to be introduced, compromising everything from consumer electronics to military equipment. Domestic PCB manufacturing has drastically declined, leading the U.S. government to consider subsidies and legislative incentives to boost local production and reduce dependency on China.

• Nearly all AI circuit boards are manufactured in China, posing a national security risk to the U.S. due to potential for malicious components.
• Domestic production of PCBs has fallen to 4% from 30%, with China producing six out of ten PCBs.
• The U.S. Defense Department is mandating purchases from dwindling domestic factories.
• The U.S. government is exploring subsidies and legislative incentives to encourage domestic PCB manufacturing.
• Both AI demand and global conflicts are increasing PCB prices and straining supply chains.
• Companies like TTM Technologies and Sanmina are expanding U.S. operations to meet demand.