Billions in federal subsidies for semiconductor manufacturers are expected to help reverse a decades-long decline in America’s share of global chip manufacturing.
As a result, America’s share of world chip manufacturing is expected to rise for the first time in decades, to 14 percent by 2032, up from about 10 percent today.
The report found that much of the industry’s growth would be fueled by the bipartisan CHIPS Act, which gave the Commerce Department $39 billion to encourage semiconductor manufacturing in the United States.
Absent that legislation, America’s share of global chip manufacturing would have fallen to 8 percent by 2032, according to the report.
The United States is also expected to see a substantial boost in the domestic production of advanced logic chips, which are used in artificial intelligence, smartphones and autonomous vehicles.
Persons:
Biden
Organizations:
Semiconductor Industry Association, Boston Consulting Group, Commerce Department
Locations:
United States