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IC market leadership 20 percent of all ICs by 2030 from the USA?

From Susanne Braun | Translated by AI 2 min Reading Time

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The U.S. government is investing a lot of money in expanding domestic semiconductor production. It is confident that by the end of the decade, the USA will be capable of dominating 20 percent of the market for advanced logic chips. A complete IC value chain within the country is expected to ensure independence from external factors.

In October, Globalfoundries received funding from the U.S. Department of Defense amounting to 35 million U.S. dollars to accelerate the large-scale manufacturing of gallium nitride (GaN)-on-silicon semiconductors at the plant in Vermont.(Image: Globalfoundries)
In October, Globalfoundries received funding from the U.S. Department of Defense amounting to 35 million U.S. dollars to accelerate the large-scale manufacturing of gallium nitride (GaN)-on-silicon semiconductors at the plant in Vermont.
(Image: Globalfoundries)

Most integrated circuits (ICs) are manufactured today in countries such as China, Taiwan, and South Korea. China is one of the largest producers of ICs, followed by Taiwan, which is considered a center of semiconductor production. Large companies like Samsung and SK Hynix come from South Korea.

The USA also plays a role in this field, but in the eyes of the government, it has not been big enough so far. The United States is leading in chip design and in the development of AI language models but does not manufacture the advanced chips required for AI applications.

With billion-dollar subsidies, the goal is not only to establish and boost domestic IC production but also to supply around 20 percent of the market by the end of the decade, i.e., by 2030. This plan was emphasized by US Commerce Secretary Gina Raimondo in a speech at the think tank Center for Strategic and International Studies in Washington in early February 2024 (via ElectronicsWeekly).

Starting from zero

"We believe that our investments in the production of leading logic chips will get this country on track, and by the end of the decade we will produce about 20 percent of the world's leading logic chips," said Raimondo at the event, adding, "Today, we are starting from zero."

In the future, not only will 20 percent of the globally needed ICs be manufactured on US soil. The US government is optimistic that the entire value chain for advanced logic chips can be established within the country, from polysilicon production through wafer manufacturing to advanced packaging. At the same time, the production of current and older chip generations will not be neglected in order to stabilize supply chains.

The United States government's subsidies are not about achieving just a few prestigious fabs and then letting the production run on its own. They also want to specifically promote chip production, not to scatter the subsidy money with a watering can, Raimondo is quoted as saying.

Projects that will be actively producing by the year 2030 are being prioritized. Just in February 2024, Globalfoundries received a commitment for a grant of 1.5 billion US dollars (approx. 1.38 billion EUR) . This will be used to expand the Fabs in Vermont and New York. (sb)

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