4 semiconductor manufacturing trends to watch in 2025

The U.S. semiconductor manufacturing industry will continue to see strong growth this year, driven by advances in artificial intelligence, electric vehicles and data centers.

Setting the stage for much of this growth is CHIPS and the Science Act, which has played a pivotal role in domestic production of semiconductors and strengthening the resilience of the industry’s supply chain. The landmark legislation includes $39 billion to launch a nationwide semiconductor manufacturing project that would turn states like Arizona and New York into chip manufacturing hubs.

On the other hand, technologies that utilize AI include Nvidia processor and Intel’s Advanced Nodefueling growing demand for next-generation chips, while the automotive sector is poised to see a surge in the use of semiconductors as electrification accelerates.

Despite these opportunities, the industry still faces challenges such as talent shortages and resource strain in building manufacturing plants. As the United States seeks to establish itself as an industry leader against competitors such as China and Taiwan, workforce development efforts, energy-efficient innovations, and strategic responses to changing trade policies are becoming increasingly important. is a key priority for semiconductor companies in 2025.

1. AI, energy efficiency will drive demand

When it comes to demand for semiconductors, AI-based chips are expected to see double-digit growth through 2030, said Joe Stoknas, president of semiconductors. industry association Semi-Americans.

“AI chips, which are the most attractive chips for the market at the moment, are worth much more in the market,” Stoknas said.

But some experts say the surge in demand could have a negative impact and even lead to further chip shortages.

“Even in 2025, I think there will still be certain areas within the supply chain that are highly restricted, and many of them will be driven by AI,” said Bain & Company’s Technology and Cloud said Ann Hocker, director of services. America continent. There are limitations to the packaging technology built into Nvidia chips and some high-bandwidth memory chips, she said.

Sustainably produced chips are also key to maintaining the power needed to power data centers and high-tech vehicles, said Chris Richard, managing director and partner at Boston Consulting Group.

“The more energy-efficient chips will be the real winners. Energy efficiency will become a real purchasing driver going forward,” Richard said. This is a real problem, so just make sure you have enough power to run them. ”

In addition to AI, the industry aims to meet the growing demand for chips for advanced vehicles, especially electric vehicles.

Stoknas said the demand for electrification has increased the demand for high-voltage systems, and the semiconductor industry is also growing.

“We are part of a solution that allows us to build EVs that can travel further and charge faster, and the key there is moving to higher voltage systems,” he said. . Stoknas added that demand for semiconductors in the automotive sector is expected to triple by 2030.

Richard said that to remain competitive, focusing on specific parts of the semiconductor market can provide more advantages.

“I think when you’re innovating, when you’re trying to do something really new, they have to be focused,” Richard said. “You can’t over-diversify unless you’re just rolling around cash, right? But most companies don’t do that. As the market matures further, diversification of products and combinations becomes more important. I think it will play a role.”

2. Qualified labor remains in short supply

The industry continues to face a labor shortage. Qualified workers such as engineers, technicians, and fab operators are in high demand, but the talent pipeline is struggling to keep up.

When it comes to launching a new facility, Hocker said talent recruitment is just as important as supply chain strategy.

“How do you do on-site training, like moving people to existing locations? Do you bring people in? There’s kind of a mobility element to this,” she said.

For example, Taiwan Semiconductor Manufacturing Company Attracting workers from Taiwan After construction was delayed due to a lack of human resources, the company planned to build a factory in Arizona.

There’s also big competition technology workers.

“There just aren’t as many people to fill the science and engineering jobs that semiconductor companies need,” Richards said. “There are very popular software companies competing for the same talent from the same top universities. So it’s an ongoing problem.”

3. CHIPS and the power of scientific law

Until now, the Department of Commerce has $30.6 billion in funding from CHIPS completed It invested in 19 companies and used the bulk of its $39 billion bucket to offer $1.7 billion to 13 chipmakers.

“If you think about all the announcements and expansions in the U.S., a lot of it comes from CHIPS Act funding,” Hocker said. “We’re seeing it being allocated to a variety of players across the , cutting-edge, more specialized semiconductor space.”

nevertheless, CHIPS law remains unclear Under the new Trump administration. During the campaign, the president said he favored tariffs over subsidies and tax credits to persuade companies to build manufacturing facilities in the United States.

The CHIPS Act fostered tremendous growth for foreign companies and major U.S.-based companies. Some of the top CHIPS funding recipients include TSMC, Intel, and Samsung Electronics, all of which received more than $6 billion in awards.

According to the paper, 90 new semiconductor projects have been announced across the U.S. starting in 2022, with more than 58,000 jobs expected to be created, including new semiconductor manufacturing facilities and existing sites. The project also includes expansion and supply of materials and equipment used in chip manufacturing. Semiconductor Industry Association.

4. Maintain a global yet resilient supply chain

Demand for construction on U.S. soil will continue to increase in 2025, Hocker said. She said companies will require purchases from U.S. factories.not foreign.

but, President Trump promises to impose high tariffs And the uncertain future of the CHIPS Act creates uncertainty for the semiconductor industry.

“We don’t know what’s going to happen, but I think it’s important that everyone starts thinking about ways to potentially consider making sure their supply chains are resilient as tariffs are imposed, because… Because we think that’s going to change over the next few years,” Hocker said.

He urged semiconductor companies to look back and assess how they will address their supply chains in order to plan for the future, especially when demand outstrips growth.

“An important lesson learned from the last shortage was that things can change faster than expected,” Hocker said. “So having a little bit of inventory is helpful, but it’s also really important to have a very broad view of what’s going on in industries outside of your own.”

Hocker added that it’s important to know what’s happening not just in your company or industry, but elsewhere in the economy.

“Other parts of the supply chain are often surprised,” she said.