A new analysis forecasts 200% growth in US semiconductor manufacturing capacity by 2032, partly due to the investments in several new fabs through the CHIPS and Science Act.
A 203% projected increase from 2022 to 2032 compares to an 11% increase from the prior decade, according to the Semiconductor Industry Association and the Boston Consulting Group, which jointly conducted the analysis, summarized in a 38-page report.
Their report indicates the US share of the world’s chip manufacturing capacity will increase from 10% in 2022 to 14% by 2032. Without the CHIPS Act investments, the US share would have slipped to 8% by 2032.
Also, the US is expected to amass 28% of total global capital expenditures in the chip space from 2024 to 2032, behind Taiwan’s 31%. Without CHIPS, the US would have captured just 9% of the global expenditures.
In addition, the US is expected to grab 28% of global capacity for advanced logic chips (considered those below 10nm) by 2032, from 0% in 2022. CHIPS committed $39 billion in incentives for domestic chip manufacturing, plus an investment tax credit for advanced manufacturing. The CHIPS Act was enacted in August 2022 providing $52.7 billion total, including the manufacturing sum of $39 billion. The remainder is earmarked for chip research, development and workforce development.
In a recent update, the CHIPS Program Office said it had announced $29.3 billion in grants and up to $25 billion in loans to 7 companies across 16 projects in 10 states.
After CHIPS was passed, companies have announced more than 80 new projects across 25 states, reaching nearly $450 billion in private investments. The projects are expected to create 56,000 semiconductor-related jobs and support many hundreds of thousands of jobs throughout the economy.
Preliminary grants to chip makers for facilities in the US have included Intel ($8.5 billion), TSMC ($6.6B), Samsung ($6.4B) , Micron ($6.14B) and GlobalFoundries ($1.5B).
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The SIA has praised the CHIPS Act and SIA board chair Rich Templeton issued a statement saying that the Act and similar policies “are spurring more investments in the US semiconductor industry…Continued and expanded overnment-industry collaboration will help ensure we building on this momentum and continue our next steps forward.” Templeton is chair of Texas Instruments, which is proposing billions in its own fab investments and has applied for a CHIPS Act grant.
In addition to the US, the EU has a $47 billion CHIPS Act and India has $15 billion for semiconductor facilities. Japan, Korea and China also have similar programs.
Separately, SIA also announced this week that chip sales globally increased by 15% in the first quarter of 2024, compared to a year ago, reaching $137.7 billion. Double digit annual growth is projected for all of 2024.