SIA Tag Archive

  • SIA and BCG Publish Global Chip Supply Chain Report

    SIA and BCG Publish Global Chip Supply Chain Report

    5 Min Read

    The Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a report on the global chip supply chain that projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when the CHIPS and Science Act (CHIPS) was enacted—to 2032. The projected 203% growth is the largest projected percent increase in the world over that time.

    The study, titled “Emerging Resilience in the Semiconductor Supply Chain,” also projects the U.S. will grow its share of advanced logic (below 10nm) manufacturing to 28% of global capacity by 2032, up from 0% in 2022. Additionally, America is projected to capture over one-quarter (28%) of total global capital expenditures (capex) from 2024-2032, ranking second only to Taiwan (31%). In the absence of the CHIPS Act, the U.S. would have captured only 9% of global capex by 2032, according to the report.

    While the report finds investments from the industry—facilitated by CHIPS incentives—are on track to reinvigorate semiconductor manufacturing in America and reinforce U.S. chip supply chains, it also identifies policy actions that will further strengthen supply chains, support R&D and chip design, grow the semiconductor workforce, and ensure CHIPS delivers maximum benefits to America’s economic and national security.

    The report also analyzes the efforts underway in other countries to incentivize chip production and innovation and the criticality of ensuring chip companies have open access to global customers and suppliers, among other topics.

    “Effective policies, such as the CHIPS and Science Act, are spurring more investments in the U.S. semiconductor industry. These investments will help America grow its share of global semiconductor production and innovation, furthering economic growth and technological competitiveness,” said Rich Templeton, Chairman of the Board at Texas Instruments and SIA board chair. “Continued and expanded government-industry collaboration will help ensure we build on this momentum and continue our next steps forward.”

    Other key report findings:

    • America’s world-leading 203% projected increase in fab capacity from 2022 to 2032 stands in stark contrast to its modest 11% increase from the previous decade (2012-2022), which ranked last among all major chip-producing regions, according to the SIA/BCG report.
    • The U.S. share of the world’s chip manufacturing capacity will increase from 10% in 2022—when the CHIPS and Science Act was enacted—to 14% by 2032, marking the first time in decades the U.S. has grown its domestic chip manufacturing footprint relative to the rest of the world. In the absence of CHIPS enactment, the U.S. share would have slipped further to 8% by 2032, according to the report.
    • The U.S. continues to lead the world in its overall contribution to the global value chain, with strong leadership positions in high value-added areas of semiconductor technology, including chip design, electronic design automation (EDA), and semiconductor manufacturing equipment.

    The report also finds industrial policies have the potential to create additional bottlenecks that increase supply chain risk. Certain segments of the semiconductor supply chain are at risk if incentive programs and large-scale industrial policies lead to non-market-based investment, which can result in overconcentration or oversupply. Government incentives should focus on enabling targeted, distributed, market-based investments.

    Further, the study highlights the ways in which governments and companies are taking concerted action to increase resilience. The U.S. CHIPS Act committed $39 billion in incentives for semiconductor manufacturing, plus a separate advanced manufacturing investment tax credit. The European Union unveiled the European CHIPS Act, China initiated the third phase of its Integrated Circuit (IC) Industry Investment Fund, and various other incentive programs have emerged in Taiwan, Korea, Japan, India, and around the world. In parallel, companies have made significant investments, in both established and new regions. The report projects around $2.3 trillion in capex in 2024-2032, compared to $720 billion in the decade prior to enactment of the CHIPS Act (2013-2022).

    Despite the progress made to strengthen U.S.-based semiconductor manufacturing, additional government policy actions are needed to help ensure America stays on track to address lingering supply chain vulnerabilities and grow its share of fabrication capacity, while also increasing its strength in areas such as advanced logic, design, EDA, and equipment in the face of growing global competition.

    “The CHIPS and Science Act has put America on course to significantly strengthen domestic semiconductor production and R&D, but more work is needed to finish the job,” said John Neuffer, SIA president and CEO. “We look forward to working with government leaders to advance policies that broaden the STEM talent pipeline, invest in scientific research, promote free trade and access to global markets, and expand and extend critical CHIPS incentives.” 

    The CHIPS Act’s manufacturing incentives have sparked substantial announced investments in the U.S. In fact, companies in the semiconductor ecosystem have announced more than 80 new projects across 25 U.S. states—totaling nearly $450 billion in private investments—since the CHIPS Act was introduced. These announced projects will create more than 56,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional U.S. jobs throughout the U.S. economy.

    Original – Semiconductor Industry Association

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  • Rich Templeton of Texas Instruments Elected Chair of Semiconductor Industry Association

    Rich Templeton of Texas Instruments Elected Chair of Semiconductor Industry Association

    2 Min Read

    The Semiconductor Industry Association (SIA) announced Texas Instruments Chairman of the Board Rich Templeton has been elected Chair of the SIA Board of Directors and Western Digital CEO David Goeckeler has been elected SIA Vice Chair. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

    “It is a great pleasure to welcome our new leadership team for the year ahead, Rich Templeton of Texas Instruments and David Goeckeler of Western Digital,” said John Neuffer, SIA President and CEO. “Rich is extremely knowledgeable about the challenges we face as an industry and how we can overcome them, and David is a seasoned industry veteran and a highly effective champion for SIA’s priorities. Together, they will make an outstanding team as leaders of the SIA Board of Directors in 2024.

    Templeton became Chairman of Texas Instruments in April 2008 and was President and CEO from May 2004 through March 2023. From April 2000 through April 2004, Templeton was Chief Operating Officer of TI. He was Executive Vice President of the company and President of TI’s semiconductor business from June 1996 through April 2004.

    As CEO, Templeton maintained the company’s strategic investments in R&D and manufacturing, while expanding the size of the sales and applications engineering team to better serve TI customers. Under his leadership, TI emerged stronger, with better technological and product positions in both its core businesses. Templeton joined the company in 1980 after earning a B.S. in electrical engineering from Union College in New York.

    “Semiconductor technology is making the world smarter, greener, more efficient, and better connected, and effective government policies are needed to help the industry continue to grow and innovate,” said Templeton. “I look forward to working alongside my colleagues on the SIA Board to advocate for industry priorities in Washington and capitals around the world.”

    Since joining Western Digital in March 2020, Goeckeler has focused on the company’s transformation as the leading data storage producer in the industry. Before becoming CEO, he was Executive Vice President and General Manager of Cisco’s Networking and Security Business, with responsibility for more than $34 billion of the company’s global technology franchise.

    He led a worldwide team of more than 25,000 engineers and oversaw Cisco’s networking and security strategy and market acceleration, including development operations for the company’s expansive technology portfolio and strategic acquisitions.

    Original – Semiconductor Industry Association

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