The U.S. chip manufacturing industry is ushering in an unprecedented investment boom. According to the latest report from the U.S. Census Bureau, the U.S. government has spent more in 2024 on construction investment in the computer and electronics manufacturing industry than in the past 27 years combined.
The source of this wave of investment is the CHIPS and Science Act, which was signed into law by the Biden administration in 2022. The bill provides up to $280 billion in financial support for the U.S. semiconductor industry, aiming to improve the competitiveness of the United States in the global chip market. Through this bill, the U.S. government not only provides direct financial assistance to chipmakers, but also increases investment in research and development, personnel training, and supply chain security.
Due to the financial support provided by the CHIPS and Science Act, many well-known chip companies have increased their investment in the United States. Local companies such as Intel, Micron, and GlobalFoundries have announced factory expansions and production capacity; Overseas companies such as TSMC and Samsung have also chosen to set up production bases in the United States to enjoy policy dividends and market opportunities. According to statistics, Intel, as a leading company in domestic chip manufacturing in the United States, has received up to $8.5 billion in government investment for the construction of new fabs and R&D facilities.
Figure: U.S. spending on chip manufacturing in 2024 has surpassed the previous 27 years combined
This wave of investment has had a profound impact on the U.S. chip manufacturing industry. First, it will significantly increase U.S. chip production capacity. According to the Semiconductor Industry Association, the U.S. domestic chip manufacturing capacity will triple by 2032, and it is expected to produce 30% of the world's cutting-edge chips. This will help alleviate the global chip shortage and enhance the U.S. position in the global chip market.
In addition, this wave of investment will also promote the improvement of the U.S. chip industry chain. By increasing investment in R&D, talent training, and supply chain security, the United States will be able to establish a more complete and efficient chip industry chain and enhance the competitiveness of the entire industry. At the same time, it will also attract more innovative companies and talents to the United States, further promoting the development of the American technology industry.
However, in the face of this wave of investment, the U.S. chip manufacturing industry also faces some challenges. First of all, how to ensure that these investments can be effectively used to avoid waste of funds and duplication of construction is an important issue. Companies such as Samsung, TSMC and Intel are all building new factories more than a year behind schedule. The industry generally believes that the main reason for the delay is poor regulation, which also makes the United States one of the slowest countries in the world to build chip manufacturing plants. Second, how to attract and retain excellent talent is also a key issue that the U.S. chip manufacturing industry needs to solve.
