U.S. chip manufacturing capacity is projected to triple by 2032, nearly two years after President Biden signed the CHIPS and Science Act, according to a new report published by the Semiconductor Industry Association (SIA). It shows progress over time.
The increase is expected to increase the U.S. share of global semiconductor production from 10% now to 14% by 2032, according to SIA, the first growth in the country's manufacturing footprint in decades. .
“It's going to take years to recover,” SIA President and CEO John Neufer told Yahoo Finance. “But with the CHIPS Act and all these private sector investments, we have completely turned the corner and are now heading in the right direction.”
This report card, conducted in partnership with Boston Consulting Group, will drive global chip manufacturing capacity expansion to meet growing demand for advanced semiconductors, particularly those used in artificial intelligence. It was announced inside.
The United States has maintained a leadership position in chip design and research and development, led by companies like Intel (INTC) and Nvidia (NVDA), but it manufactures only 10% of the world's chip supply. Meanwhile, 100% of advanced chips are developed overseas, most of them by Taiwan's TSMC (TSM).
This reality, and concerns about supply disruptions, led the Biden administration to pass the $50 billion CHIPS Act in 2022, aimed at bringing manufacturing back to the United States. The incentives included in that package attracted nearly $5 trillion in investment to build manufacturing facilities in the United States, Neufer said.
Intel was the biggest beneficiary, receiving $8.5 billion in federal aid. The company has invested more than $100 billion to expand its manufacturing operations in Arizona, New Mexico and Oregon.
“[The CHIPS Act] “We've leveled the playing field for companies to decide where to put their next fab,” Neufer said.
US subsidies created a kind of global competition that encouraged chip manufacturing. Europe is trying to attract fab development with its own $47 billion package. Japan is pushing to regain its status as a semiconductor powerhouse by providing $17.5 billion in subsidies to industry leaders such as TSMC and Micron (MU). And China, largely restricted by U.S. export controls, is investing more than $150 billion to build its own semiconductor manufacturing capacity.
Additionally, SIA estimates that private investment in wafer manufacturing will total $2.3 trillion by 2032.
imbalance between supply and demand
Neufer said the scale of investments made beyond 2022 puts the U.S. in a stronger position to compete in advanced chip manufacturing, with the country expected to reach 28% of the sub-nanometer chip market by 2032. He said he plans to gain %. powerful tip.
But oversupply remains a concern, especially for the processors most widely used in devices such as smartphones and consumer electronics.
The SIA report says the current trajectory of manufacturing fab construction means that future demand capacity for “legacy” chips above 28 nanometers “significantly exceeds future demand”, particularly in China, leading to falling prices. He said they are connected.
A lack of workers to fill new manufacturing facilities is also a concern. When TSMC announced delays at its Arizona facility last summer, it cited a “lack of skilled labor” and said it would need to bring in technicians from Taiwan to train U.S. employees. . In December, the company agreed to develop a workforce training program to resolve local labor disputes.
Neufer said the semiconductor industry is expected to be short by 67,000 workers this decade, particularly due to a shortage of engineers, computer scientists and technicians. He said more training programs and STEM courses need to be developed to support an industry whose workforce is expected to grow by nearly 115,000 people over that time.
“It's going to take a lot of people to fill these factories,” he says. “This is an issue that we have laser-like focus on, but it will also require public support at universities and community colleges.”
Akiko Fujita is an anchor and reporter for Yahoo Finance. Follow her on Twitter @Akiko Fujita.
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