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U.S. Congress Passes CHIPS Act
The United States Congress has passed the CHIPS and Science Act, paving the way for a stronger presence of the semiconductor industry in America with billions earmarked for investment.
According to the Semiconductor Industry Association, the overall share of modern semiconductor manufacturing capacity located in the U.S. has declined from 37% in 1990 to 12% today(2022). The primary cause is the fact that other countries have invested ambitiously in chip manufacturing incentives while the U.S. government has not.
The CHIPS Act of 2022 is focused on reinvigorating the US chip manufacturing industry in the US, with allocated investments of $54 billion for chips and public wireless supply chain innovation, including $39 billion that will go towards financial assistance to build, expand and modernize semiconductor facilities in the U.S. The bill also includes a 25% tax credit for investment into the semiconductor manufacturing industry.
Stay Informed on Important Industry Updates
The electronics industry is constantly changing, and with a new influx of financial capital, there are likely to be changes to manufacturing and fabrication sites.
SiliconExpert monitors industry changes in the market and alerts you to changes in your BOM. More specifically, when global manufacturers or chipmakers expand their operations and capacity, this has a direct effect on your supply chain and procurement risk. The addition of new fabrication sites and new procurement opportunities will lower risk by adding multi-sourcing options and increasing available inventory.
With BOM Manager, you’ll be able to see BOM health risk alerts, which automatically notify users if the BOM contains parts at risk of disruption, whether inventory levels drop or if the part suddenly becomes unavailable due to obsolescence, compliance.
References
- https://www.vox.com/recode/2022/7/27/23277664/chips-act-solve-chip-shortage-biden-manufacturing
- https://www.semiconductors.org/chips/
- https://thehill.com/homenews/house/3578295-house-passes-chips-and-science-bill-sending-measure-to-bidens-desk/
- https://www.cnbc.com/2022/07/28/china-competitiveness-and-chip-bill-passes-house-goes-to-biden.html
Facts
- TSMC produces 92% of the world’s most advanced semiconductors: https://www.vox.com/recode/23048906/chip-shortage-manufacturing-america-biden
- US has 54% of world’s market share for semiconductors: https://www.businessinsider.in/tech/news/us-companies-seize-worldwide-semiconductor-trade-with-over-thirteen-times-more-market-share-than-china/articleshow/90682632.cms
- USA’s global chip market share over time: https://www.am.miraeasset.com.hk/insight/asias-dominance-in-the-semiconductor-industry/
- Japan and USA is dropping in market share of chips, but China is rising fast. https://www.economist.com/international/2022/01/29/will-china-dominate-the-world-of-semiconductors
- Asia is dominating the global market share: https://www.am.miraeasset.com.hk/insight/asias-dominance-in-the-semiconductor-industry/
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