Wednesday, May 8, 2024, 5:00 a.m.
by Semiconductor Industry Association
US predicts domestic chip manufacturing will increase by 203% in 10 years after enactment of CHIPS and Science Act— and expand its share of total global fab capacity for the first time in decades — according to a new report from the Semiconductor Industry Association/Boston Consulting Group focused on the global chip supply chain.
WASHINGTON—May 8, 2024—The Semiconductor Industry Association (SIA), in collaboration with Boston Consulting Group (BCG), today announced that the United States will triple its domestic semiconductor manufacturing capacity starting in 2022. released a report on the chip supply chain. The projected growth rate of 203% is the world's largest projected percentage increase over that period.
The study, titled “New Resilience in the Semiconductor Supply Chain,” predicts that the U.S. will increase its share of advanced logic (<10nm) manufacturing from 0% in 2022 to 28% of global capacity by 2032. are doing. From 2024 to 2032, it is predicted to account for more than a quarter (28%) of the world's total capital investment (capex), placing it in second place after Taiwan (31%). Without the CHIPS Act, the United States would have captured only 9% of global capital investment by 2032, according to the report.
The report finds that industry investment spurred by CHIPS incentives is on track to revitalize U.S. semiconductor manufacturing and strengthen the U.S. chip supply chain, while further strengthening the supply chain. It identifies policy measures to strengthen, support research and development and chip design, and foster U.S. growth. Strengthens the semiconductor workforce and ensures that CHIPS delivers maximum benefits to America's economy and national security.
The report also analyzes efforts being made in other countries to encourage chip production and innovation, and the importance of giving chip companies open access to customers and suppliers around the world. ing.
“Effective policies such as CHIPS and the Science Act are further encouraging investment in the U.S. semiconductor industry. This will help drive growth and technology competitiveness,” said Rich Templeton, Chairman of the Texas Instruments Board of Directors and Chairman of the SIA Board of Directors. “Continuing and expanding collaboration between government and industry will ensure we build on this momentum and take the next steps.”
Other important report findings:
- According to SIA, the world's top forecast for a 203% increase in fab capacity from 2022 to 2032 in the United States ranks last among major chip producing regions over the past decade (2012 to 2022). This is in stark contrast to the modest 11% increase from ). /BCG report.
- The US share of global chip manufacturing capacity will increase from 10% in 2022, when the CHIPS and Science Act was enacted, to 14% by 2032, with the US expanding its domestic chip manufacturing base relative to the rest of the world. This will be the first time in several decades. Rest of the World. Without the enactment of CHIPS, the U.S. share would have fallen further to 8% by 2032, according to the report.
- The United States has established a strong leadership position in high-value areas of semiconductor technology, including chip design, electronic design automation (EDA), and semiconductor manufacturing equipment, and leads the world in overall contribution to global value chains. I continue to do so.
The report also finds that industrial policy can create further bottlenecks that increase supply chain risks. Certain segments of the semiconductor supply chain may be at risk if incentive programs or large-scale industrial policies lead to non-market-based investments that can create overconcentration or oversupply. Government incentives should focus on enabling targeted, decentralized, market-based investments.
The research also highlights how governments and businesses are taking action together to increase resilience. His US CHIPS Act promised a separate advanced manufacturing investment tax credit in addition to his $39 billion in incentives for semiconductor manufacturing. The European Union announced the European CHIPS Act, China launched the third phase of its Integrated Circuit (IC) Industry Investment Fund, and various other incentive programs are emerging in Taiwan, South Korea, Japan, India, and around the world. Masu. In parallel, companies have made significant investments in both established and new regions. The report predicts that capital investment will rise to approximately $2.3 trillion from 2024 to 2032, compared to $720 billion in the 10-year period (2013-2022) before the enactment of the CHIPS Act. There is.
U.S.-based semiconductor manufacturing continues to strengthen, but the U.S. needs to address remaining vulnerabilities in its supply chain and expand its share of manufacturing capacity while strengthening its strengths in areas such as advanced logic. Additional government policy actions are needed to ensure we stay on track. , design, EDA, and equipment are facing increasing global competition.
“CHIPS and the Science Act put the United States on track to significantly strengthen domestic semiconductor production and research and development, but more efforts are needed to complete the job,” said SIA President and CEO (CEO) John Neufer said. “We are working with government leaders to develop policies that expand the pipeline of STEM talent, invest in scientific research, promote free trade and access to global markets, and expand and extend critical CHIPS incentives. I look forward to promoting it.”
CHIPS Act Manufacturing Incentives Announce Significant Investments in the U.S. In fact, since the introduction of the CHIPS Act, companies in the semiconductor ecosystem have announced more than 80 new projects in 25 U.S. states, increasing the total private investment amount to approximately $450 billion. These announced projects will create more than 56,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional American jobs across the U.S. economy.
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