by Semiconductor Industry Association
Nineteen new chip manufacturing facilities would be built in the U.S. in next 10 years with $50 billion federal investment, according to study by Boston Consulting Group and SIA
WASHINGTON—Sept. 16, 2020—The Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), today released a study analyzing the impact of proposed federal incentives for domestic semiconductor manufacturing. The report, titled Government Incentives and U.S. Competitiveness in Semiconductor Manufacturing, finds robust federal incentives would reverse the decades-long trajectory of declining chip production in America and create as many as 19 major semiconductor manufacturing facilities (fabs) and 70,000 high-paying jobs in the U.S. over the next 10 years. Congress is considering legislation that calls for substantial investments in domestic semiconductor manufacturing and research. SIA represents 95 percent of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.
“Federal incentives for U.S. semiconductor manufacturing are an investment in America’s economic strength, national security, supply chain reliability, and pandemic response,” said Keith Jackson, president, CEO, and director of ON Semiconductor and 2020 SIA chair. “With swift, ambitious action, the U.S. government can help turn the tide of decades of decline in the share of global chip manufacturing done in the U.S., which now stands at only 12 percent, and make America one of the most attractive places in the world to produce semiconductors.”
Key report findings:
The report also highlights several other areas where government action could help enable a thriving domestic semiconductor manufacturing sector. These include fundamental research in materials and manufacturing sciences, training to ensure the U.S. can have a robust and talented pool of workers, a continued commitment to maintaining U.S. R&D leadership, and ensuring access to global markets.
“The country that leads in advanced chip research, design, and manufacturing will have a big leg up in the global race to deploy new game-changing technologies, such as 5G, artificial intelligence, and quantum computing,” said John Neuffer, SIA president and CEO. “Leaders in Washington should seize this opportunity, level the global playing field to attract chip production, and invest boldly in domestic manufacturing incentives and research initiatives that will strengthen U.S. tech leadership for decades to come.”
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