UPDATED. 2024-06-21 07:30 (금)
US chip production capacity to triple by 2032 thanks to CHIPS Act
US chip production capacity to triple by 2032 thanks to CHIPS Act
  • JY Han
  • 승인 2024.05.10 07:33
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According to a report by SIA and BCG
Image: SIA
Image: SIA

The US chip production capacity is expected to triple from 2022 to 2032 from the enactment of the CHIPS and Science Act, but extending current support and considering additional measures was needed to “stay the course”, according to a joint report by the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG).

The US CHIPS and Science Act was signed into law in August 2022 and commits US$39 billion in grants and 25% investment tax credits to chip, or semiconductor, manufacturing.

The report said from 2022 when the law was signed up to 2032, US domestic chip production capacity, or fab capacity, is expected to increase by 203%, the highest increase among all the regions of the world.

US fab capacity was only 10% prior to the CHIPS and Science Act but this will also increase to 14% in 2032, the report noted, adding that if the law was enacted this would have dropped to 8% over the same time period. Prior to the passing of the Act, US fab capacity only increased 11% from 2012 to 2022, the report also noted.

SIA and BCG also said the US is expected to account for 28% of the capacity for 10-nanometer (nm) and newer processes by 2032. Prior to 2022, this figure was zero.

From 2024 to 2032, US fab spending will account for over 28% of the global total, the report also noted, being only second to Taiwan’s 31%. Without the CHIPS and Science Act, this would have been 9%, SIA and BCG claimed.

Since the signing of the CHIPS and Science Act, there have been over 80 investment projects across 25 states in the US related to semiconductors, the report also noted, for a combined worth of US$450 billion.

Europe, China, Taiwan, and Japan have also unveiled similar incentive programs.

South Korea is the only country that is not offering direct or indirect funding for semiconductor production.

Advanced nations that are behind in manufacturing capacity can offer subsidies but South Korea’s weakness was the ecosystem as well as materials, components, equipment, and additionally infrastructure, Choi Sang-mok, South Korea's deputy prime minister and Minister of Economy and Finance, told reporters last week. Choi said the government can offer funding for these areas and offer tax incentives for areas where companies are good at (that is, manufacturing).

Ahn Ki-Hyun, executive director at the Korea Semiconductor Industry Association, told TheElec that fabs that were built with direct and indirect funding will depreciate faster, which will save chipmakers in cost. This means chips made from fabs in South Korea will be at a disadvantage in cost to their counterparts from the US and Japan, Ahn noted.

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