The US FPGA supply chain faces substantial, unmitigated risks production with low availability and security risks (e.g., through to availability and security, which will be exacerbated by a PRC availability and security risks (e.g., through tariffs imposed on the tive cost of ensuring availability and security. sources of production). Both forms of intervention would incen- cing cost risk, often at the expense of increasing availability orwith lower availability and security risks, onshoring operations in security risks.98 However, availability and security risks createthe United States or in other, more trusted nations. Overall, the broad externalities (see Sections 4.2 and 4.3), including substan- tial economic, national security, and geopolitical consequences. FPGA supply chain to manage availability risks. risks given information asymmetries and spillover effects.99 As a result,firms underinvest in ensuring security and availabi- The policymakers' assumptions described in Section 2.2 are lity, leading to a market failure that requires US government 99Joseph E. Stiglitz, “Markets, Market Failures, and Development," The American Economic Review 79, no. 2 (1989): 197-203.
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