SIA Study: U.S. to Triple Semiconductor Manufacturing Capacity by 2032

by Carolyn Mathas

The Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a new report on the global chip supply chain. The report forecasts that the United States will triple its domestic semiconductor manufacturing capacity from 2022 to 2032, a growth of 203%.

Highlights of the study, “Emerging Resilience in the Semiconductor Supply Chain,” also include:

  • 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
  • The U.S. should capture 28% of total global capital expenditures (capex) from 2024-2032, only behind Taiwan (31%).
  • Policy actions will further strengthen supply chains, support R&D and chip design, grow the semiconductor workforce, and ensure CHIPS delivers maximum benefits to economic and national security
  • Analysis of other countries to incentivize chip production and innovation and the criticality of ensuring chip companies have open access to global customers and suppliers, among other topics
  • The U.S. continues to lead the world in its overall contribution to the global value chain, with leadership in such high value-added areas including chip design, electronic design automation (EDA), and semiconductor manufacturing equipment

“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,” said Rich Templeton, Chairman of the Board at Texas Instruments and SIA board chair. “Continued and expanded government-industry collaboration will help ensure we build on this momentum and continue our next steps forward.”

All is not roses. The report claims that industrial policies can potentially create additional bottlenecks that increase supply chain risk. Certain segments remain at risk if incentive programs and large-scale industrial policies lead to non-market-based investment, which can result in overconcentration or oversupply. Despite the progress made to strengthen U.S.-based semiconductor manufacturing, additional government policy actions are necessary to address lingering supply chain vulnerabilities and grow its share of fabrication capacity while increasing its strength in areas such as advanced logic, design, EDA, and equipment in the face of growing global competition.

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