Research finds incentives for semiconductor manufacturing will strengthen the US’s chip production, economy, national security, and supply chain

Yesterday, the Semiconductor Industry Association (SIA) and the Boston Consulting Group (BCG) released a research report analyzing the impact of the proposed federal incentives on domestic semiconductor manufacturing.

The report, titled "Government Incentives and U.S. Competitiveness in Semiconductor Manufacturing," pointed out that strong federal incentives will reverse the trajectory of decline in chip production in the United States 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.

The report stated that Congress is considering legislation to require substantial investment in domestic semiconductor manufacturing and research.

“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.”

The report also highlights several other areas where the US 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.”

For the report, please click Government Incentives and U.S. Competitiveness in Semiconductor Manufacturing.