Thursday, September 12, 2024, 12:00 p.m.
Greg LaRocca, Director of Market Research and Economic Policy
The Semiconductor Industry Association (SIA) today released its annual State of the Industry Report, highlighting opportunities for continued growth and innovation across the semiconductor industry and addressing current and future challenges to the industry’s sustained success.
Last year, the industry’s global sales hit $527 billion, with nearly 1 trillion semiconductors sold worldwide – that’s more than 100 chips consumed by every person on the planet. With cyclical market downturns ending and demand for semiconductors on the rise, World Semiconductor Trade Statistics estimates that sales will rise to more than $600 billion in 2024.
Rising demand is spurring new industry investments to increase semiconductor production. Thanks in part to the groundbreaking CHIPS and SCIENCE Act, the United States is projected to more than triple its semiconductor manufacturing capacity and secure a greater share of new private investment in semiconductor manufacturing. In fact, since CHIPS was first introduced in Congress, companies in the semiconductor ecosystem have announced more than 90 new manufacturing projects in the United States, totaling nearly $450 billion in announced investments across 28 states. These investments are projected to create tens of thousands of direct jobs and support hundreds of thousands of additional jobs across the U.S. economy. The industry is investing in countries around the world, building more robust and resilient supply chains.
Strengthening and expanding the U.S. domestic semiconductor supply chain presents great opportunities but also great challenges. For example, as U.S. semiconductor operations expand over the coming years, so will the demand for skilled talent. Other policy challenges remain, including continued implementation of CHIPS and the SCIENCE Act, strengthening U.S. leadership in semiconductor research, design and manufacturing, and maintaining open access to foreign markets where companies can sell domestically manufactured semiconductors.
Other governments are also particularly interested in increasing supply chain resilience with regard to chip production and upstream materials production capacity, with the goal of reducing strategic dependencies. The industry is committed to ensuring the resilience of the global semiconductor supply chain, further facilitating access to global markets, and facilitating the expansion of global trade through deeper international cooperation.
Overall, the semiconductor industry is well positioned for long-term growth: As innovation continues to increase globally, so does the need for the semiconductors that underpin that advancement.
Semiconductors have never played a more important role in society than they do today, and the future of our industry has never been brighter.
