Thomas Alsop
Research expert covering the global hardware industry
Semiconductors in the United States - statistics & facts
From smartphones to national security, the success of the semiconductor industry in the United States is important to the country’s economy and standing on the global stage. However, with growing dependence on international suppliers over recent decades, questions are being asked of the U.S. over whether it can reclaim its chip dominance and maintain its technological lead. The U.S., along with the rest of the world, has had to content with shifting demands, supply chain imbalances, and geopolitical factors, throwing the semiconductor industry into the spotlight. As such, governments including the U.S. have recognized the need for action, developing action plans and policies to safeguard the supply of one of the world’s most critical technologies.
CHIPS for America to boost domestic semiconductor manufacturing
The U.S. is a key market within the global semiconductor landscape, leading in research and development activities such as semiconductor intellectual property, chip design, and advanced fabrication equipment. However, the country has lost ground in manufacturing, with investment in this field by other regions around the world eroding semiconductor manufacturing capacity in the country. To address this, the U.S. government has actioned a federal semiconductor incentive program in the form of the CHIPS for America program, with 50 billion U.S. dollars now being directed toward domestic semiconductor manufacturing, as well as research and development.The U.S. boasts companies across the semiconductor ecosystem
Semiconductor companies can be categorized into three distinct types: integrated device manufacturers (IDMs), fabless semiconductor companies, and foundries. IDMs are responsible for all semiconductor manufacturing processes from design to production. Fabless companies produce designs for semiconductors but do not own any production facilities. The actual production, or fabrication, of semiconductors is outsourced to foundry companies. Notable IDMs in the U.S. include Intel and Texas Instruments. Fabless companies like Nvidia have made headlines, announcing record figures as it powers the artificial intelligence revolution. In terms of semiconductor foundries, GlobalFoundries ranks among the top foundries worldwide.Protecting the industry for the future
As well as supporting innovation, an important goal of the CHIPS for America scheme is to offer greater protection to the country's national security, especially in regard to China. Competition and tension between the two countries exists across several arenas, particularly technology. To protect its economic and security interests, the United States has implemented export controls and investment restrictions on semiconductor technology and equipment by Chinese companies, an effort that has also been joined by the likes of Japan and the Netherlands. While challenges remain, renewed U.S. leadership alongside its allies can ensure a more secure future for the semiconductor industry, free from dependence on any single nation.
