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American Made Advocacy: Smart Policies Can Ensure AI Data Centers Are Secure

Megatrends in the economy always capture the interest of the media, politicians, investors, and industry titans. The latest megatrend is artificial intelligence (AI), which has created a mad rush to increase American capabilities and has manifested itself in the proliferation of massive data centers. 

When you go beyond the headlines, there are very real supply chain and security challenges. Each data center can house tens of thousands of computer servers containing millions of semiconductors and printed circuit boards.

Who is making the printed circuit boards for those servers? One thing is for sure: Much of the content originates in other countries.

Even if the server has an American flag on the outside, there is a high probability that the printed circuit boards originated in China or other Asian countries. China is particularly problematic given the adversarial relationship with the U.S.

Chinese firms like Huawei, Tencent, and Alibaba are major players in the data center and cloud computing space. Taking a global look at the countries of origin for Chinese technology in cloud data storage1, you can see that even if it says Mexico, Turkey, Saudi Arabia, Singapore, or Indonesia on the outside, it’s likely you will have Chinese technology inside. “China Inside” is a red flag for those focused on the security of our national defense and critical infrastructure systems like data centers.

August saw a few high-profile factory investment announcements2 signaling possible long-term confidence. But further examination of those reports reveals that U.S. manufacturing is a mixed bag. While it is true that pharmaceuticals and some other industries showed an uptick, PCB manufacturing remains steady at about 4% of the world’s supply. PCBs for AI applications require advanced manufacturing capabilities and scale that is lacking in the U.S., and despite recent planned investments, will continue to fall short of what is required for secure AI infrastructure. 

The need to restore domestic capacity and build an AI infrastructure we can trust presents a unique public policy and private investment opportunity. 

Members on both sides of the aisle in Congress are signing on to sponsor H.R. 3597, the Protecting Circuit Boards and Substrates Act. That bill would provide government grants and game-changing tax credits certain to spur private investments, similar to the CHIPS Act. PCBAA and the Global Electronics Association are pushing hard to pass legislation that would end up on the president’s desk to bolster his Made in America campaign.

The AI revolution and the data centers that power it are being built today. Smart policies now can ensure American leadership for years to come. 

The nation’s security and prosperity depends on a vibrant and innovative microelectronics industry. 

Join PCBAA today and add your voice to our outreach in Washington, D.C.

References

1. “Where Chinese or American Tech Is Used in Cloud Data Storage,” by Katharina Buchholz, Statista, May 5, 2025.
2. “Aust 2025 Manufacturing Insights,” US Manufacturing Report, Sept. 15, 2025.

This column originally appeared in the October 2025 issue of PCB007 Magazine.