U.S. Semiconductor Manufacturing Capacity to Triple by 2032
U.S. Semiconductor Manufacturing Capacity to Triple by 2032
A new report published by the Semiconductor Industry Association (SIA) projects that the U.S. will triple its semiconductor manufacturing capacity between 2022 and 2032. This process began with the CHIPS and Science Act, signed in August 2022, which provides $280 billion in federal funding for semiconductor manufacturing and research in the U.S. The legislation includes provisions for manufacturing subsidies, tax credits, and workforce training, and aims to reduce the U.S.'s dependence on semiconductor imports from China and Southeast Asia.
\nThe SIA's analysis forecasts that the U.S. will increase its share of advanced logic chip manufacturing to represent 28% of global capacity by 2032. Prior to the passage of the CHIPS Act, the U.S. had no share in this segment.
\nFurthermore, the U.S. is expected to achieve the largest increase among nations, expanding its semiconductor fabrication capacity by 203% over the decade. Finally, the Biden administration announced it is providing $6.1 billion in federal funding to Micron Technology for constructing new semiconductor manufacturing facilities in New York and Idaho, and $6.5 billion in federal funding to Samsung for new semiconductor facilities in Texas.
\nKey Takeaways
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U.S. semiconductor manufacturing capacity is expected to triple between 2022 and 2032.
\n The CHIPS and Science Act provides a $280 billion investment in the U.S. semiconductor sector.
\n The legislation offers support including manufacturing subsidies, tax credits, and workforce training.
\n The U.S.'s share of global advanced logic chip capacity is projected to rise from 0% to 28%.
\n With a 203% increase in semiconductor fabrication capacity, the U.S. will move into a leading position among nations.
\n The Biden administration has provided billions of dollars in funding to Micron and Samsung for new facilities.
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