U.S. Semiconductor Production Set To Double By 2032, Reducing East Asia Reliance

As a significant development in the global semiconductor industry, it is expected that chip production in the United States will increase significantly in the coming years. This estimated behavior aims to reduce dependence on East Asian suppliers. According to the Semiconductor Industry Association (SIA) commissioned by Boston Consulting Group, the US semiconductor manufacturing capacity is expected to more than double by 2032. This growth trajectory will increase the market share of US semiconductor production from the current 10% to the expected 14%.

With this increase, the trend of U.S. semiconductor production gradually shifting to Asia is broken. Without government programs like the "Chip Act," experts warn that the United States' market share would have fallen as low as 8%. In promoting the "Chip Act," SIA has made clear how it will increase homegrown semiconductor production and reduce dependency on East Asian manufacturing hubs.

John Neuffer, CEO of SIA, emphasized the significance of the legislation, stating, "The 'Chip Act' is a critical first step, but additional measures are needed to achieve our goals. Our industry acknowledges the risks of having too much manufacturing concentrated in East Asia."

The "Chip Act," which includes billion in funding, billion in loans and guarantees, and a 25% tax credit, aims to encourage semiconductor companies to build or expand their production facilities in the U.S. Already, leading global semiconductor manufacturers such as TSMC, Samsung, and Intel have committed to increasing their manufacturing presence in the country.

SIA projects that by 2032, the production share of chips in each of the following regions will be as follows: Of the sophisticated logic chips produced worldwide, the United States will manufacture 28%, Taiwan 47%, South Korea 9%, and mainland China 3%. Apart from the US, other nations are also increasing their semiconductor production. For instance, mainland China plans to construct roughly thirty additional factories, or twice as many, with the goal of bolstering its semiconductor supply chain. The European Union is undertaking eight related projects to improve its semiconductor capabilities at the same time.

In summary, it is anticipated that the United States would significantly enhance semiconductor production by 2032 in an effort to reduce its reliance on East Asian suppliers. Forecasts indicate that the United States' semiconductor production capacity will more than double and that its market share will increase from 10% to about 14%. This increase signifies a noteworthy reversal of the outsourcing trend in semiconductor manufacture. The US is working to establish itself as a major player in the global semiconductor market with the support of initiatives like the "CHIPS Act," which encourage domestic production. The global chip production landscape is expected to undergo a substantial transformation in the coming years as other regions enhance their semiconductor capabilities.However,whether it is a domestic brand chip or an original imported chip product, we at XRS have a large and diverse range of electronic components products, aiming to provide customers with suitable products to meet all their needs.If you need to find component models, please feel free to consult us!