Greg LaRocca, Director of Market Research and Economic Policy reports that nearly 1 trillion semiconductors were sold globally, more than 100 chips for every person on earth. LaRocca writes:
The Semiconductor Industry Association (SIA) released its annual State of the Industry Report today. The report highlights opportunities for continued growth and innovation across the semiconductor industry and notes current and upcoming challenges to the industry’s sustained success.
Last year, industry global sales reached $527 billion and nearly 1 trillion semiconductors were sold globally, more than 100 chips for every person on earth. With a cyclical market downturn now over and demand for semiconductors high, estimates from World Semiconductor Trade Statistics project sales to increase to over $600 billion in 2024.
Source: SIA
In the decade following CHIPS enactment (2022 to 2032), the United States is projected to more than triple its semiconductor manufacturing capacity — the highest rate of growth in the world during that period — according to a May 2024 SIA-Boston Consulting Group report. The report also forecasts the U.S. will grow its share of advanced (less than 10nm) chip manufacturing to 28% of global capacity by 2032 and capture 28% of total global capital expenditures (capex) from 2024 to 2032. By comparison, in the absence of the CHIPS Act, the report estimates the U.S. would have captured only 9% of global capex by 2032. […]
Other governments have also taken a particular interest in advancing supply chain resilience when it comes to the production of chips and upstream materials capacity, with a goal to reduce strategic dependencies. The industry is committed to ensuring global semiconductor supply chains are resilient, further promoting access to global markets, and facilitating increased global trade through deeper international collaboration.
Overall, the semiconductor industry is well-positioned for long-term growth. As innovation continues to increase globally, so will the need for semiconductors to serve as the foundation of that progress.
In the State of The US Semiconductor Industry 2024 Report, the SIA & Boston Consulting Group reports that areas of vulnerability remain, and additional work is needed to strengthen the US supply chain. They write:
A new report by SIA and the Boston Consulting Group on the semiconductor supply chain forecasts significant improvements in the resilience of the supply chain in the U.S. and
globally in coming years. In particular, the study shows investments from the industry, facilitated by incentives under the CHIPS Act, are making progress in growing domestic
semiconductor manufacturing and strengthening the U.S. economy. Among other things, the report projects the following:
U.S. fab capacity will increase by 203% from 2022-2032, a tripling of U.S. capacity. The projected 203% growth is the largest projected percent increase in the world over that time.
The U.S. will secure more than one-quarter (28%) of global capital expenditures between 2024-2032 — an estimated $646 billion — an amount second only to Taiwan. In the absence of the CHIPS Act, the U.S. would have captured only 9% of global capex by 2032, according to the report.
The U.S. will increase its share of global fab capacity for the first time in decades, growing from 10% today to 14% by 2032. In the absence of CHIPS enactment, the U.S. share would have slipped further to 8% by 2032, according to the report.
The U.S. will grow its capabilities in critical technology segments, such as leading-edge fabrication, DRAM memory, analog, and advanced packaging. For example, U.S. capacity for advanced logic (less than 10nm) will grow to 28% by 2032, including new capabilities at the leading edge.
Despite this substantial progress, areas of vulnerability in the ecosystem remain, and additional work is needed to maintain this momentum and secure key areas of the chip supply chain.
