Domestic Semiconductor Manufacturing Would Strengthen America’s Economy, National Security, and Supply Chains

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A report by the Semiconductor Industry Association (SIA and Boston Consulting Group (BCG) finds that domestic semiconductor manufacturing within the United States would create jobs, and strengthen national security, the U.S. economy, and supply chain reliability.  The report, called “Government Incentives and U.S. Competitiveness in Semiconductor Manufacturing

“Federal incentives for U.S. semiconductor manufacturing are an investment in America’s economic strength, national security, supply chain reliability, and pandemic response,” said Keith Jackson, president, CEO, and director of ON Semiconductor and 2020 SIA chair. Congress is currently considering legislation that would invest in domestic semiconductor manufacturing and research. “With swift, ambitious action, the U.S. government can help turn the tide of decades of decline in the share of global chip manufacturing done in the U.S…. and make America one of the most attractive places in the world to produce semiconductors.”

The U.S. currently accounts for only 12% of the global semiconductor manufacturing capacity. That amount has decreased steadily for some time due to a dearth of incentives in the U.S. which accounts for a 40-70% cost differential.

“Depending on the size of the program, the U.S. could potentially double or triple its participation in the new additional semiconductor manufacturing capacity that still needs to be developed globally to meet the expected growth in market demand,” according to the report.

In addition to job growth, the report predicts that moving semiconductor manufacture to the United States would increase the resiliency of our supply chains and fuel innovation in future technology.

“The country that leads in advanced chip research, design, and manufacturing will have a big leg up in the global race to deploy new game-changing technologies, such as 5G, artificial intelligence, and quantum computing,” said John Neuffer, SIA president and CEO. “Leaders in Washington should seize this opportunity, level the global playing field to attract chip production, and invest boldly in domestic manufacturing incentives and research initiatives that will strengthen U.S. tech leadership for decades to come.”


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