Trade
Reshoring
Definition
Bringing manufacturing or business operations back to the home country after previously offshoring them, typically motivated by supply chain risk, quality control, or government incentives.
Explanation
Reshoring accelerated after COVID-19 supply disruptions and US-China trade tensions. The US CHIPS Act incentivizes semiconductor reshoring — TSMC, Samsung, and Intel are building major fabs in the US. Reshoring is more expensive than offshoring but reduces geopolitical risk and creates domestic jobs. Full reshoring is impractical; most companies pursue "China+1" diversification.