'Crises at Boeing and Intel Are a National Emergency'

Intel and Boeing, once exemplars of American manufacturing prowess, now face existential crises. Their market values have plummeted, jeopardizing not just shareholder wealth but national security. The U.S. is losing its edge in manufacturing high-tech products, crucial in its geopolitical contest with China, a story on WSJ argues. Unlike past manufacturing declines, Intel and Boeing's woes stem from internal missteps, prioritizing financial performance over engineering excellence. Their potential demise threatens America's semiconductor and commercial aircraft industries, with far-reaching consequences for the nation's technological ecosystem. While government intervention is controversial, national security concerns may necessitate support. WSJ adds: So, much as national leaders would like to ignore these companies' woes, they can't. National security dictates the U.S. maintain some know-how in making aircraft and semiconductors. Certainly other countries feel that way: European governments heavily subsidized Airbus. China is pursuing dominance in key technologies regardless of the cost. Its so-called Big Fund has sunk roughly $100 billion into semiconductors while aid to Comac had reached $72 billion in 2020, according to the Center for Strategic and International Studies. "Until Comac succeeds in gaining significant global market share, it will continue to run big losses and be bailed out by the Chinese government," said Atkinson, whose organization gets support from Boeing. Both political parties have bought into the idea that manufacturing is special and thus deserving of public support. That raises the question: which manufacturing, and what kind of support? The goal of manufacturing strategy shouldn't be just producing jobs but great, world-beating products. [...]

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