The Semiconductor Industry Association (SIA) predicted a massive US investment in its domestic chip sector would pay off within a decade, with research conducted alongside Boston Consulting Group pointing to a 203 per cent increase in manufacturing capacity by 2032.
Crucially, the SIA and consulting company’s research indicated the US could quickly take a leading role in production of advanced chips using processes of less than 10nm, with 28 per cent of global capacity expected to come from the nation by 2032.
The SIA stated the US had little to no share of such advanced logic chips in 2022 when it introduced its CHIPS and Science Act, a programme to reinvigorate its domestic silicon industry with a $52 billion investment pot.
SIA president and CEO John Neuffer said the US investment put the country “on course to significantly strengthen domestic semiconductor production and R&D”, but added more must be done to “finish the job”.
The SIA and Boston Consulting Group’s research indicated the US’ share of global chip manufacturing capacity would rise from 10 per cent in 2022 to 14 per cent by 2032. The Association stated this is a direct result of the nation’s massive funding package, without which its share would have fallen.
Along with highlighting a growing presence for the US in global fabrication capacity, the research indicated a clampdown on Chinese companies could bear fruit: Nikkei Asia reported China’s share of advanced logic capacity would stand at 2 per cent by 2032.
The SIA suggested more US legislation would be needed to keep the country “on track” by addressing “lingering supply chain vulnerabilities” and continuing to build manufacturing capacity.
It also wants action to boost the US’ position in areas including “advanced logic”, electronic design automation and equipment.
Chip companies including TSMC, Intel and Samsung are among those tapping the US funding pot to bolster their facilities in the nation.
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