There’s no doubt that the US semiconductor industry is experiencing unprecedented demand. There are new technological developments hitting markets almost every week and markets still playing catch-up from supply chain impacts caused by the coronavirus pandemic (Covid-19). All in all, there hasn’t been a more interesting time to be in the semiconductor space.
he US Department of Commerce recently highlighted the growing need for semiconductors in the US, reckoning that demand was as much as 17% higher in 2021 than in 2019. While this upturn is causing strains in itself, on top of that many on-stream semiconductor manufacturing facilities are operating at or above 90% utilization. It all means there is limited additional supply to bring online without the time lag that comes with investing in brand-new facilities.
Semiconductor shortages can drastically affect the production capabilities in many industries, including computing, healthcare, military systems, transportation, and clean energy. Semiconductors are at the heart of so many inventions now, from your smartphone to your car to your TV and so much more. In recognizing the drastic need for support of the market, the US earlier this year set itself the mission to become a world leader once again in the market.
“In the US market, we are seeing unprecedented investment in part as a result of the pandemic.”
This support came in the form of a $52bn commitment wrapped up in the CHIPS and Science Act, which was signed into law in August (2022). With the aim of revitalizing the market, President Joe Biden said the industrial strategy that’s been set provides funding for new semiconductor programs, a $39bn grant programme, funds for research and development (R&D), and even international information communications technology security and semiconductor supply chain activities.
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