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Congress’s massive investment in the domestic semiconductor industry is expected to pay off over the next decade.
That’s according to a report the Semiconductor Industry Association (SIA) and the Boston Consulting Group released Wednesday, which found that the US is poised to significantly grow its share of chip manufacturing both at home and abroad.
The country’s fabrication capacity will jump 203% from 2022 to 2032, SIA and BCG estimated. The country is also on track to expand its share of international manufacturing capacity from its current 10% to 14% by 2032.
The study notes that the projected growth is facilitated by the 2022 CHIPS and Science Act, which allocated $39 billion in domestic manufacturing incentives and $11 billion for chip research and development. The legislation aimed to decrease American dependence on geopolitical rivals like China that supply crucial tech components.
“Effective policies, such as the CHIPS and Science Act, are spurring more investments in the US semiconductor industry. These investments will help America grow its share of global semiconductor production and innovation, furthering economic growth and technological competitiveness,” SIA board chair Rich Templeton said in a statement. “Continued and expanded government-industry collaboration will help ensure we build on this momentum and continue our next steps forward.”
The study came two days after the Biden administration announced up to $285 million in funding through the act for the development of semiconductor digital twins, a technology that creates virtual replicas of physical objects.