The Semiconductor Industry Association (SIA), Washington, in partnership with the Boston Consulting Group, has released a study showing that nineteen new chip manufacturing facilities would be built in the United States over the next ten years with a $50 billion federal investment.
The report, titled Government Incentives and U.S. Competitiveness in Semiconductor Manufacturing, finds that 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 United States over the next ten 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 United States, which now stands at only 12 percent, and make America one of the most attractive places in the world to produce semiconductors.”
