US Semiconductor Association Predicts Huge Investments

The Semiconductor Industry Association (SIA) predicts a massive US investment in its domestic chip sector would pay off within a decade. Their research points to a 203% increase in manufacturing capacity by 2032.

The research indicates that the US could quickly take a leading role in the production of advanced chips using processes of less than 10nm, with 28% of global capacity expected to come from the nation by 2032. The SIA said the US had little to no share of such advanced logic chips in 2022 when it introduced its CHIPS and Science Act, a program to reinvigorate its domestic silicon industry with a $52 billion investment.

SIA president and CEO John Neuffer said the US investment put the country on course to strengthen domestic semiconductor production and R&D significantly but added more must be done to finish the job. The research indicated the US share of global chip manufacturing capacity would rise from 10% in 2022 to 14% by 2032. The Association stated this is a direct result of the nation’s massive funding package, without which its share would have fallen.

Along with highlighting a growing presence for the US in global fabrication capacity, the research indicated a clampdown on Chinese companies could bear fruit as Nikkei Asia reported China’s share of advanced logic capacity would stand at 2% by 2032. The SIA suggested more US legislation would be needed to keep the country on track by addressing lingering supply chain vulnerabilities and continuing to build manufacturing capacity. It also wants action to boost the US position in areas including advanced logic, electronic design automation, and equipment.