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The Growth of Domestic Semiconductor Manufacturing Capacity in the U.S.
A multi-billion dollar initiative aimed at revitalizing chip production in the United States is expected to drastically increase domestic chipmaking capabilities, tripling the current capacity. This endeavor, coupled with the passage of the CHIPS and Science Act, is projected to bolster domestic semiconductor manufacturing by an impressive 203% by 2032, as outlined in a recent report by the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG).
Projecting Future Expansion
According to the report, the anticipated rise in semiconductor manufacturing capacity in the U.S. is unparalleled, with a growth rate unprecedented on a global scale, positioning the country as a key player in the industry. By 2032, the U.S. is forecasted to control a significant portion, approximately 28%, of the global advanced logic chip manufacturing capacity, a remarkable spike from the negligible percentage in 2022.
The impact of the CHIPS Act on stimulating investments within the semiconductor sector is highlighted by Rich Templeton, chairman of Texas Instruments and SIA board chair. Templeton emphasized that effective policies like the CHIPS and Science Act are instrumental in attracting more investments, ultimately propelling growth within the U.S. semiconductor industry.
Building Momentum for Economic Growth
The report further indicates that the U.S.’s share of global chip manufacturing capacity is on an upward trajectory, shifting from 10% in 2022 to an estimated 14% by 2032. This positive trend marks a significant departure from previous decades where the U.S.’s chip manufacturing footprint was in decline relative to the global landscape.
While the CHIPS Act has undoubtedly set the stage for substantial progress in domestic semiconductor production and research, there is acknowledgment that additional efforts are required to solidify these advancements. John Neuffer, SIA president and chief executive, stresses the importance of continued collaboration between government and industry to foster policies that enhance STEM education, support scientific research, facilitate global trade, and sustain essential CHIPS incentives.
Noteworthy investments from the CHIPS Act have benefitted major players in the semiconductor space, with chipmakers like Intel, TSMC, and Samsung receiving significant funding to establish fabs across the country. These developments underscore a renewed focus on advancing technological competitiveness, economic growth, and innovation within the semiconductor industry.
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