Billions in Chips Grants Are Expected to Fuel Industry Growth, Report Finds

🌈 Abstract

The article discusses how billions in federal subsidies for semiconductor manufacturers are expected to help reverse a decades-long decline in America's share of global chip manufacturing, with the U.S. set to triple its domestic chip manufacturing capacity by 2032.

🙋 Q&A

[01] Semiconductor Industry Growth

1. What is the expected increase in the U.S. domestic chip manufacturing capacity by 2032? The U.S. is expected to triple its domestic chip manufacturing capacity by 2032, which is the largest increase in the world.

2. How will the CHIPS Act contribute to this growth? The bipartisan CHIPS Act, which gave the Commerce Department $39 billion to encourage semiconductor manufacturing in the U.S., is expected to fuel much of the industry's growth. Without this legislation, America's share of global chip manufacturing would have fallen to 8% by 2032.

3. What is the expected increase in the U.S. share of global chip manufacturing by 2032? America's share of world chip manufacturing is expected to rise for the first time in decades, to 14% by 2032, up from about 10% today.

[02] Advanced Logic Chip Production

1. What is the expected increase in the U.S. production of advanced logic chips by 2032? The U.S. is expected to produce nearly 30% of all advanced logic chips by 2032, up from essentially zero today.

2. What are some companies that have committed to producing leading-edge semiconductors in the U.S. in the coming years? Companies that have recently received federal awards and committed to producing leading-edge semiconductors in the U.S. include Samsung, Intel, and Taiwan Semiconductor Manufacturing Company.