More than a quarter of advanced chip production to occur on US soil by 2032

[Shawn Knight]

The big picture: The Chips and Science Act is on track to achieve its intended goal of boosting domestic semiconductor manufacturing. According to a fresh report from the Semiconductor Industry Association (SIA), approximately 28 percent of all advanced logic chips (those made on processes newer than 10 nanometers) will be produced in the US by 2032. Europe and Japan are also forecasted to collectively push their advanced chip production to around 12 percent during the same period.

Put another way, the US is expected to grow its fab capacity by 203 percent between 2022 and 2032.

Assuming nearly a third of the world's advanced chip production in just one decade is a significant shift, and there are inevitably going to be some losers as a result. Per the SIA, Korea and Taiwan are expected to be hit the hardest.

Korea's advanced chip production is forecasted to dip down to just nine percent by 2032, from 31 percent in 2022. Similarly, Taiwan's share could fall 22 percent over the same period, from 69 percent in 2022 to just 47 percent in 2032.

Zooming out to look at the bigger picture, the US was responsible for just 10 percent of global chip production (of all kind) in 2022. That figure is expected to climb to 14 percent by 2032. Without the Chips Act, the US would likely have seen its total chip production decline to just eight percent by 2032.

Rival China, meanwhile, is forecasted to account for just two percent of advanced chip production by 2032. Neither country had any capacity to make such chips as of 2022.

The US Chips Act was signed into law in August 2022, and set aside $39 billion in subsidies specifically intended to support chip manufacturing within the US. A handful of awards have already been doled out with recipients including Intel, Taiwan Semiconductor Manufacturing Co., and Samsung. As of late April 2024, about half of the act's financial incentives had already been accounted for.

Image credit: Pixabay

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More than a quarter of advanced chip production to occur on US soil by 2032

 

[GodisanAtheist]

Good if true, but I'll believe it when I see if (if I make it to 2032).

Gonna tag this post and hope the site is still up after the apocalypse.

 

[The Talking Tech]

About time we wake up and start manufacturing our own products as we used to.

 

[wiyosaya]

It would be interesting to know what the percentage of US production of chips was at its peak from whatever year in the past that took place.

IMO, chips are only part of the equation. The US needs to bring back manufacturing of products that use those chips, too.

 

[gamerk2]

It would be interesting to know what the percentage of US production of chips was at its peak from whatever year in the past that took place.

I know it was in the 60% range in the mid/late 60s.

 

[Squid Surprise]

Might be true... might not... when politicians state things will happen years after their terms of office will expire, it's kind of hollow... if the US breaks this promise, the decision makers will have long retired...

I can guarantee my Toronto Maple Leafs will win the Cup next year - but if they don't, other than ridicule (and massive disappointment - I'm still reeling over their Game 7 OT loss to Boston), what happens to me?

 

[p51d007]

About time we wake up and start manufacturing our own products as we used to.

Same here! Production in America, is what helped win WW2. Post WW2, the USA was the manufacturing
giant of the world. Then...the CEO's got greedy. Moved a lot of manufacturing to Japan for cheap labor.
Once the Japanese workers started demanding more money to improve their lives, the CEO's move to
other countries.
Once those other countries workers started demanding more money to improve their lives, the CEO's
moved to China. They thought they found the golden goose. The Chinese "subjects" can't demand much
of anything without the approval of the CCP. But with a lot of negativity over "slave labor", you see a lot of
manufacturers moving some production back to the USA, while others have found a new source of labor,
the country of India.

 

[ScottSoapbox]

It’s funny that we’re paying these companies billions to move where their plant is located.

Same companies, different location; Like that is the more important thing. The companies are laughing all the way to the bank while misguided patriots cheer.

 

[SpiritCrusher]

It’s funny that we’re paying these companies billions to move where their plant is located.

Same companies, different location; Like that is the more important thing. The companies are laughing all the way to the bank while misguided patriots cheer.

I'd say the geopolitical issues in Asia (mostly Taiwan & China but also North & South Korea) are too important to ignore given the military posturing of China and North Korea. I'm not looking forward to the increased prices likely as a result of US production but time will tell if it was worth the trouble to move production back to US locations. Convincing workers to perform high quality work while facing practices that US workers are not used to will be interesting to watch as well. I believe TSMC workers in Taiwan are on-call whenever something comes up (e.g. recent earthquake) at plants and work quite long shifts.

 

[Q Wales]

Throw away comment but in my experience, stuff from the US is way too expensive for us to purchase in the UK. Items travelling from twice the distance e.g. China are mostly much cheaper after the add on taxes are all paid. In other words, who cares.