Dependence on unreliable supply chain partners undermines the leadership and competitive advantage of the U.S. semiconductor industry. Promoting U.S. investment and working with allies and likeminded governments is essential to strengthening trusted semiconductor supply chains, in both upstream semiconductor materials and downstream markets, and supporting semiconductor industry operations in the U.S.
A 2024 report by the Semiconductor Industry Association (SIA) and the Boston Consulting Group on the semiconductor supply chain forecasts significant improvements in the resilience of the supply chain in both the U.S. and globally in coming years. The study shows investments from the industry, facilitated by incentives under the CHIPS Act, are making progress in growing domestic semiconductor manufacturing and strengthening the U.S. economy. Among other things, the report finds U.S. fab capacity is projected to increase by 203% by 2032, a tripling of U.S. capacity. The U.S. is also projected to increase its share of global fab capacity for the first time in decades, growing from 10% today to 14% by 2032.
Despite this substantial progress, areas of vulnerability in the U.S. semiconductor ecosystem remain, and additional work is needed to maintain this momentum and secure key areas of the chip supply chain.
