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U.S. to Boost Chip Production

Significant Increase in Production Capacity According to a new report from the Semiconductor Industry Association (SIA), the United States is set to increase its semiconductor manufacturing capacity more than any other region by the start of the next decade. The study, titled “Emerging Resilience in the Semiconductor Supply Chain,” has been warmly received by the architects of the Chips and Science Act, who have been distributing grants and loans worth billions of dollars to bring chip manufacturing back to the U.S. The report’s highlight stats include:

  • The U.S. will boost its fab capacity by 203% from 2022 to 2032 (compared to an 11% increase between 2012 and 2022).
  • The U.S. share of the world’s chip manufacturing capacity will increase from 10% in 2022 to 14% by 2032.
  • Without the enactment of CHIPS, the U.S. share would have slipped to 8% by 2032.
  • The U.S. will grow its share of advanced logic (below 10nm) manufacturing to 28% of global capacity by 2032, up from 0% in 2022.

Boost from Effective Policies and Technological Competitiveness Rich Templeton, Chairman of the Board at Texas Instruments and SIA board chair, stated, “Effective policies, such as the CHIPS and Science Act, are spurring more investments in the U.S. semiconductor industry. These investments will help America grow its share of global semiconductor production and innovation, furthering economic growth and technological competitiveness.” He also emphasized the importance of continued and expanded government-industry collaboration to sustain this momentum and move forward.

Challenges and Global Competition However, it should be noted that while the U.S. will improve its production capacity at the highest rate compared to its previous performance, its overall improvement will be surpassed by China. The report estimates that China will boost its capacity by 365% from 2022 to 2032. Moreover, the report, conducted in partnership with the Boston Consulting Group, highlights the global clamor by governments to accelerate domestic chip-making capacity, referencing packages like Europe’s $47 billion, Japan’s $17.5 billion in grants to industry leaders, and more than $150 billion in investments by China.

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