A recent report by the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG) reveals significant projections for the U.S. semiconductor industry by 2032. The findings suggest a remarkable growth trajectory, driven by strategic policies and industry investments.
According to the report, the United States is poised to triple its domestic semiconductor manufacturing capacity over the next decade. This surge is expected to elevate the U.S. share of global chip manufacturing capacity from 10% in 2022 to 14% by 2032.
Several factors contribute to this anticipated growth. The enactment of the Chips and Science Act in 2022 is noted as a pivotal step in bolstering U.S. chip manufacturing capacity. Additionally, strategic investments by industry giants like Taiwan Semiconductor Manufacturing Co (TSMC) in building a 2-nanometer plant in Arizona, with a planned investment of US$65 billion, further solidify the U.S.’s position in the semiconductor landscape.
The Chips and Science Act has changed the game for the US
The Chips and Science Act has facilitated industry investments, crucial for semiconductor growth. Without this legislation, the U.S. would have captured only 9% of global capital expenditures (capex) by 2032, compared to the projected 28% with the Act in place.
While the report highlights significant growth prospects, it also underscores the importance of supply chain resilience. It warns that industrial policies could create bottlenecks, increasing supply chain risks. Hence, there’s a call for targeted, distributed, and market-based investments to enhance resilience.
The report also talks about the worldwide efforts to strengthen semiconductor industries. Initiatives such as the CHIPS Act in the U.S., the European CHIPS Act, and China’s IC Industry Investment Fund are notable incentives driving global semiconductor investments.
Looking ahead, the report emphasizes the necessity for additional government policy actions to address supply chain vulnerabilities and fortify the U.S. semiconductor industry. Recommendations include expanding critical CHIPS Act incentives, promoting free trade, investing in scientific research, and broadening the STEM talent pipeline.
The CHIPS Act incentives have already spurred substantial investments in the U.S. semiconductor industry. Over 80 new projects across 25 states have been announced, totaling nearly $450 billion in private investments. These projects are anticipated to create over 56,000 jobs in the semiconductor ecosystem, further bolstering the U.S. position in the global semiconductor landscape.
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