The U.S. will triple its chip manufacturing in less than a decade, report says – Quartz
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The multi-billion dollar effort to bring chip manufacturing back to the U.S. is projected to boost domestic chipmaking capacity by triple, a new report says.
The U.S. is expected to increase domestic semiconductor manufacturing capacity by 203% by 2032, a decade after the establishment of the CHIPS and Science Act, according to a new report from the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG). The projected rate of growth is “the largest projected percent increase in the world” over that time, according to the SIA. By comparison, the U.S.’s chip manufacturing capacity only grew 11% between 2012 and 2022, the report said — the smallest growth among major chip-producing regions.
The “Emerging Resilience in the Semiconductor Supply Chain” study projects the U.S.’s share of global advanced logic chip manufacturing capacity will grow to 28% by 2032 from 0% in 2022. The study also projects the U.S. will have 28% of total global capital expenditures between now and 2032, second only to Taiwan, and triple what it would have without the CHIPS Act.
“Effective policies, such as the CHIPS and Science Act, are spurring more investments in the U.S. semiconductor industry,” Rich Templeton, chairman of the board at Texas Instruments and SIA board chair, said in a statement. “These investments will help America grow its share of global semiconductor production and innovation, furthering economic growth and technological competitiveness. Continued and expanded government-industry collaboration will help ensure we build on this momentum and continue our next steps forward.”
The report found the U.S.’s share of global chip manufacturing capacity will grow from 10% in 2022 to 14% by 2032, “marking the first time in decades the U.S. has grown its domestic chip manufacturing footprint relative to the rest of the world.” Without the CHIPS Act, the U.S.’s share would’ve dropped to 8% by 2032, the report said.
However, the report found non-market-based investments, such as those in non-advance logic chips, could potentially put the semiconductor supply chain at risk due to an imbalance between supply and demand.
“The CHIPS and Science Act has put America on course to significantly strengthen domestic semiconductor production and R&D, but more work is needed to finish the job,” John Neuffer, SIA president and chief executive, said in a statement. “We look forward to working with government leaders to advance policies that broaden the STEM talent pipeline, invest in scientific research, promote free trade and access to global markets, and expand and extend critical CHIPS incentives.”
The CHIPS Act has awarded billions to chipmakers building fabs across the U.S., including chip pioneer Intel, the world’s largest chip foundry TSMC, and major South Korean chipmaker Samsung.
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