SIA: U.S. Chip Manufacturing Capacity to Double by 2032

According to predictions by the Semiconductor Industry Association (SIA), the United States will see an explosive growth in chip production in the coming years, which will help reduce dependency on East Asia.

A study commissioned by the SIA and conducted by Boston Consulting Group found that U.S. semiconductor manufacturing capacity is expected to double by 2032. The report indicates that this increase will raise the U.S. share of semiconductor manufacturing from the current 10% to 14%.

This surge aims to reverse the trend of declining domestic chip production, which has been shifting towards Asia over the past decades. The study notes that without government-funded initiatives like the CHIPS Act, the U.S. share would shrink to 8%.

The SIA, a strong advocate for the CHIPS Act, is eager to demonstrate the effectiveness of this legislation and is also advocating for more government investment in this sector.

SIA CEO John Neuffer stated, “We have always said the CHIPS Act is a strong first step, but more actions are needed to achieve our goals. Our industry fully recognizes that manufacturing is overly concentrated in East Asia.”

The CHIPS Act provides $39 billion in funding, along with $75 billion in loans and loan guarantees, and a 25% tax credit to encourage semiconductor companies to build facilities in the U.S. Since the act's implementation, the top five global chip manufacturers, including TSMC, Samsung, and Intel, have committed to expanding facilities in the country.

The SIA forecasts that by 2032, the U.S. will produce 28% of the world’s advanced logic chips, with Taiwan accounting for 47%, South Korea 9%, and mainland China 3%.

U.S. Commerce Secretary Gina Raimondo stated that America's goal is to produce one-fifth of the world's advanced logic chips by the end of this century.

The report also mentions that the U.S. is not the only region expanding its chip manufacturing capabilities. Mainland China is planning approximately 30 new facilities for its chip supply chain, surpassing the 26 in the U.S. The European Union is also progressing with eight such projects.