US Chip Manufacturing Industry Booms with Challenges

TapTechNews June 13. The US chip manufacturing industry is experiencing an unprecedented investment boom. According to the latest report of the US Census Bureau, in 2024, the construction fund investment of the US government in the computer and electronic products manufacturing industry will reach the level of the total sum of the past 28 years.

The strong promotion of Biden's administration's 'CHIPS and Science Act' is behind this astonishing growth. This act, which was passed in 2022 and has a total investment of 280 billion US dollars (TapTechNews note: about 2.03 trillion RMB currently), aims to revitalize the US semiconductor industry, as the US currently has an almost negligible manufacturing share of global advanced process chips.

Companies like Intel, Samsung, and Micron have all received billions of dollars in funds to build new chip manufacturing plants in the US. This act also makes domestic R & D another key area for financial support. The huge influx of funds is having a significant impact on the expected US chip production capacity. A study by the Semiconductor Industry Association shows that by 2032, the US domestic chip manufacturing capacity will triple and is expected to produce 30% of the world's leading process chips. This expectation even exceeds the established goal of the US government. US Secretary of Commerce Gina Raimondo ambitiously set the goal in February this year that by 2030, the US should produce 20% of the world's leading process chips.

At present, the construction of many new chip plants, including Intel's new plant in Ohio, is underway. These plants will be a significant force in the chip manufacturing field and are expected to bring the R & D ability of leading process chips to the US, which will be a major breakthrough in the US chip manufacturing industry. Previously, the US mainly focused on the production of chips with larger and simpler processes.

Despite the huge investment, but many chip plant constructions across the US are facing serious delay problems. The construction of new plants of companies such as Samsung, TSMC, and Intel is more than one year behind schedule. It is generally believed in the industry that the main reason for the delay is the poor regulation, which also makes the US one of the countries with the slowest construction speed of global chip manufacturing plants.