Michael B. Shane calls for a Manhattan Project for U.S. AI chip manufacturing

Michael B. Shane is urging U.S. leaders and investors to treat advanced chip dependence as a national security risk, arguing that AI growth could be constrained by manufacturing concentrated in Taiwan. His proposal calls for a coordinated domestic buildout of semiconductor capacity, workforce training and strategic reserves.

Why it matters: - Advanced AI chips are the hardware backbone for data centers, artificial intelligence systems and the industries that depend on them. - Shane argues that U.S. reliance on chips manufactured in Taiwan creates a supply-chain risk that could ripple through technology, finance, defense, transportation and health care. - He frames the issue as both an economic and national security problem, not just an industrial policy debate.

What happened: - Michael B. Shane proposed a national initiative modeled on the Manhattan Project to expand domestic AI chip manufacturing. - The proposal urges investors and political leaders to recheck AI growth assumptions against the possibility of disruption to advanced chip production in Taiwan. - Shane presented the idea as a way to support continued investment in AI, data centers and related businesses. - He called for action before a supply crisis and described the effort as a “Declaration of Chip Independence.”

The details: - Taiwan Semiconductor Manufacturing Company produces advanced chips designed by companies including Nvidia, AMD and Apple. - Shane says the split between American chip design and overseas manufacturing leaves the United States exposed. - He points to a blockade, invasion or other Taiwan disruption as a scenario that could interrupt chip shipments. - He says such a disruption could slow data center expansion and affect automobiles, telecommunications, medical technology, financial services and defense manufacturing. - Shane says existing AI systems could keep running, but replacement equipment, new compute capacity and future development would become harder to sustain. - The proposal references U.S. breakthroughs in integrated circuits, personal computers and AI processor design as proof that American innovation already exists. - Shane calls dependence on foreign advanced chips a “Gordian knot” that needs a coordinated industrial response. - He says the proposal supports continued cooperation with Taiwan and international trade while reducing dependence on any single manufacturing location. - He argues that diversification would improve resilience without cutting off relationships with foreign suppliers and trading partners. - Shane says the CHIPS Act was an important start, but domestic semiconductor production needs faster coordination. - He recommends that Nvidia commit 50% of its high-value AI chip production to Intel domestically as Intel builds the required capacity and technology. - He says that would create dependable demand for domestic manufacturing. - The recommendation is not an announced agreement between Nvidia and Intel. - His plan includes fabrication plants, advanced packaging, semiconductor equipment manufacturing, research facilities and workforce training. - He also proposes a strategic AI chip reserve, modeled on petroleum reserves. - Shane wants the newly appointed AI Czar to coordinate participation from all 50 states. - He calls for cooperation among government, industry, universities, investors and organized labor. - He says the effort could rebuild industrial capacity and create skilled manufacturing jobs across the country. - He urges investors to evaluate semiconductor supply risk alongside earnings, interest rates and economic growth. - He says confidence in AI potential should be separated from the vulnerability of the infrastructure that supports it.

Between the lines: - Shane is making a broader investment case: AI may remain a strong theme, but the hardware supply chain could become the bottleneck. - His argument shifts attention from software innovation to the physical capacity needed to sustain growth. - The proposal also signals a political message: industrial resilience and national security should move together. - By invoking the Manhattan Project, Shane is pushing for a war-scale level of coordination and urgency, not a gradual market-led adjustment.

What's next: - Shane is pressing for coordinated domestic production efforts that bring together federal, state and private-sector players. - He wants the United States to build out semiconductor capacity before a Taiwan-related disruption forces the issue. - The proposal leaves open whether policymakers or major chip companies will adopt any of the recommendations, including the Intel production commitment or strategic chip reserve.

The bottom line: - Shane’s core message is simple: if the United States wants reliable AI growth, it needs more of the chips made at home.