The United States government is fiercely competing with China for global dominance in the semiconductor industry, leading to an unprecedented surge in domestic chip manufacturing. The U.S. Census Bureau reports that the funding for constructing advanced electronics manufacturing facilities in 2024 alone will surpass the total amount spent over the previous 27 years combined.
This significant investment is propelled by the Biden administration’s CHIPS and Science Act, a $280 billion legislative package aimed at bolstering the country’s semiconductor industry. Major chip manufacturers such as Intel, Samsung, and Micron have secured billions to construct new advanced fabrication plants across the U.S. As a result, the U.S. is projected to increase its share of global advanced logic manufacturing capacity to 28% by 2032, up from 0% in 2022. This is crucial due to concerns in Washington over the security of chips produced in Taiwan, which currently accounts for around 90% of all advanced chips globally and holds a pivotal position in the tech supply chain. While the investments are expected to significantly expand chip manufacturing capacity domestically by 2032, there have been some challenges, including delays of over a year due to relatively poor regulations in the U.S., making it one of the slowest nations for chip fab construction globally. This growth in domestic chip manufacturing aims to reduce reliance on foreign suppliers, mitigate security risks, and bolster the competitiveness of the U.S. semiconductor industry. 6
