US to Triple Chipmaking Capacity by 2032, Industry Group Says

US chip production is poised to explode in coming years, helping ease a risky dependency on East Asia, according to a projection by the Semiconductor Industry Association.

Semiconductor manufacturing capacity in the country will triple by 2032, an SIA-commissioned study by the Boston Consulting Group found. That will take the US share of the industry to 14%, up from 10% currently, according to the report, which was released Wednesday.

The surge will reverse a downward trend for domestic chip production, which had been decamping for Asia in recent decades. Were it not for government funding programs like the 2022 Chips and Science Act, the US share was on course to shrink to 8%, the study found.

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The Washington-based SIA, which lobbied hard for the Chips Act, is eager to show that the legislation is paying off. It also wants the government to devote more funding to the cause.

“We’ve always said that the Chips Act was a strong first step, but we’re going to need more to get to the promised land,” SIA Chief Executive Officer John Neuffer said in an interview. “Our industry fully understands that we have an over-concentration of manufacturing in East Asia.”