Semiconductor Industry News

Rebuilding U.S. manufacturing has quietly begun, and the scale may surprise you. For decades, the U.S. offshored semiconductor and electronics manufacturing to Asia. Over time, China absorbed a large share of that capability. What we face today isn’t theoretical — it’s an economic and national security risk. Reversing that dependency is extraordinarily difficult. We didn’t just move factories overseas. We lost skills, supplier depth, process knowledge, and an entire manufacturing ecosystem. Rebuilding that capability in the U.S. means recreating decades of industrial expertise at speed. This effort began accelerating in 2022 with the CHIPS and Science Act and has compounded rapidly. Based on announced commitments from 2022–2026, semiconductor and electronics investments now total ~$1.7 trillion. ⸻ Who is rebuilding America’s semiconductor & electronics ecosystem Foundry & leading-edge logic (the fabs) 🔹 TSMC: $165B | 2nm–4nm logic, Arizona six-fab cluster 🔹 Intel: $100B+ | U.S. foundry strategy (Ohio + Arizona) 🔹 Samsung Electronics: $45B | Advanced logic & packaging, Texas Memory & AI compute 🔹 Micron Technology: $200B | DRAM & HBM hubs (Idaho, New York) 🔹 SK Hynix: $14B | Advanced AI-memory packaging, Indiana U.S. electronics & silicon anchor customers 🔹 Apple: $600B | U.S. silicon, AI servers, advanced packaging 🔹 Foxconn: $2B+ | AI-server manufacturing for U.S. cloud providers Foundational chips (automotive, industrial, defense) 🔹 Texas Instruments: $60B | Analog & embedded chips 🔹 GlobalFoundries: $12.5B | Secure, automotive, aerospace semiconductors Advanced packaging & integration 🔹 Amkor Technology, Inc.: $2B+ | U.S. back-end packaging, Arizona 🔹 Absolics: $600M+ | Glass substrates for next-gen AI chips Equipment, lithography & process control 🔹 Applied Materials: $4B+ | Process tools & R&D 🔹 ASML: $1B+ | High-NA EUV support (U.S. expansion) 🔹 Lam Research / KLA: $2B+ | Etch, deposition, yield control Materials, wafers & chemicals 🔹 GlobalWafers: $5B | 300mm wafers, Texas 🔹 Fujifilm / Entegris: $1.5B+ | Photoresists & ultra-pure chemicals 🔹 USA Rare Earth: $1.6B | Mine-to-magnet electronics materials Infrastructure that makes fabs possible 🔹 Linde / Air Liquide: $1B+ | Ultra-pure gases piped directly into fabs Geopolitical capital 🔹 Taiwan: $500B total ($250B in direct industrial investment to build fabs, packaging, materials, and suppliers in the U.S. Plus $250B in government-backed incentives to de-risk, accelerate, and anchor those projects long term) ⸻ What we need: 1. Revamp education to produce the ~88,000 engineers and technicians required to staff these future facilities. 2. Continue advancing automation and robotics to reduce labor intensity while increasing reliability and yield. 3. Build strong supply chains with allies for the components we can’t (or shouldn’t) manufacture domestically. #manufacturing #semiconductors #robotics #electronics

Big day for CHIPS investments that provides some insight into what America's semiconductor strategy is going to look like. First, the CHIPS for America office made their first manufacturing incentives announcement today, a $35 million package with BAE Systems. This is notable because this facility in New Hampshire makes legacy chips that go into important defense equipment. Teeing up this announcement underscores national security focus of the program and commitment to legacy production. Second, we also learned today that there will be a $10 billion investment in chips R&D in Albany, New York with a set of corporate partners like IBM, Applied Materials, ASML, and Micron Technology in partnership with New York State. Great example of public-private partnership to accelerate R&D in the United States. Neither of these announcements are about the big megafabs spread out across the country. These manufacturing investments are crucial too. But today's news reminds us that the CHIPS strategy is broad across geographies, sectors and technology. https://lnkd.in/gefUv4UC https://lnkd.in/gx7i5pr7

“In recent decades, only a handful of government interventions have been widely regarded as successes. Operation Warp Speed is one of them. So is the CHIPS Act, the $39 billion program that catalyzed a massive investment boom in manufacturing semiconductors on American soil… …In the years between 2007 and 2020, annual domestic construction spending in computers, electronics, and electrical manufacturing averaged $3.3 billion. After the program was authorized in 2020, and in the nearly five years since, it’s averaged $71.8 billion per year. That’s nearly twenty times higher.” https://lnkd.in/examw8ju

Why Advanced Semiconductor Manufacturing Is No Longer Economically Viable Without Government Support 1. Capital Intensity Has Passed the Point of Commercial Sustainability Historically, semiconductor manufacturing required CapEx at about 20–25% of revenue. Today, for leading-edge nodes (5nm, 3nm, 2nm), capital intensity exceeds 40–45%. That means: ✔️ Nearly half of every dollar in revenue must be reinvested just to stay competitive. 2. Foundries Now Spend $2 in CapEx For Every $1 in Net Profit Integrated device manufacturers (IDMs) and foundries are stuck in an economic paradox: • Profit growth has been linear • CapEx requirements have become exponential The result: ✔️ For every $1 in net profit, a leading-edge manufacturer must spend ~$2 in CapEx. 3. What Is Driving CapEx Explosion A. Tool Costs Have Skyrocketed EUV lithography systems now cost: • $120M a decade ago • $350M+ for the newest High-NA units A cutting-edge fab may require: • 8–18 EUV systems • Hundreds of other tools • 80,000+ m² of cleanroom space A single 2nm-capable fab costs $20–30 billion, sometimes more. B. Process Complexity Is Exponential Each new node demands: • More patterning steps • More layers • New materials • Larger cleanrooms Costs do not scale linearly — they scale exponentially. 4. Up to 25% of Global Semiconductor CapEx is Now Subsidy-Funded Governments are now paying to fill the financing gap. Across major chipmaking regions: United States – CHIPS Act $52B+ in subsidies and tax credits. European Union – EU Chips Act €43B in incentives. Japan Up to 50% cost coverage for fabs (TSMC, Rapidus). South Korea Large tax breaks and direct incentives for Samsung and Hynix. India Government covers 50% of fab CapEx. Combined, these programs cover an estimated 25% of all fab investments globally. 5. Why This Isn’t About Maximizing Profits It is not that foundries are asking for subsidies to make more money. It’s that: ✔️ Without subsidies, they would lose money building and operating leading-edge fabs. Private financial returns alone cannot justify the investment. Governments now see fabs as: • Strategic infrastructure • National security assets • AI and defense enablers • Economic stability drivers Just like power plants, railways, and defense industries, fabs are now a public–private hybrid ecosystem. 6. What Happens If Subsidies Stop If governments stop supporting: 1. Leading-edge fab expansion would slow or stop. 2. TSMC, Samsung, Intel would not build fabs outside of their home countries. 3. Memory manufacturers (DRAM/NAND) would consolidate even further. 4. AI chip prices would surge. 5. The world would become dependent on only a few aging fabs. Older nodes (28nm, 45nm, 90nm) would remain viable, but leading-edge nodes would not. Image credits: YOLE ~~~~~~ If you are looking to invest in semiconductors and need expert insights, drop us a DM.

India is rapidly emerging as a global semiconductor hub, fueled by strategic government initiatives and international collaborations. With the India Semiconductor Mission (ISM) committing over USD 10 billion, India is laying the foundation for a thriving semiconductor industry. Key players like Tata Electronics, Micron, and Kaynes Technology are leading the way with substantial investments, contributing to an expected INR 1.5 trillion in semiconductor projects. 🚀 What’s driving this revolution? • 50% subsidy for semiconductor fabs and packaging units. • Additional 20-25% state incentives. • Over 85,000 professionals to be trained in semiconductor design and manufacturing. India already accounts for 20% of the global semiconductor design talent, and we are now gearing up to manufacture 28nm chips through partnerships with global giants like PSMC (Taiwan) and Synopsys (USA). 🎯 Key Areas of Growth: • Foundries: Tata Electronics’ upcoming fab in Gujarat. • OSAT: Kaynes Technology to package 6 million chips per day. • Compound Semiconductor Manufacturing: Powering industries like automotive and energy. As we bridge the gap from design to manufacturing, India’s semiconductor ambitions are turning into a reality, creating 6 million jobs and contributing to a projected USD 500 billion electronics market by 2030. Check out our latest video covering India's semiconductor industry: https://lnkd.in/gyw4pVyx

𝐈𝐧𝐝𝐢𝐚 𝐈𝐬 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐂𝐡𝐢𝐩𝐬 𝐚𝐭 𝐑𝐞𝐜𝐨𝐫𝐝 𝐒𝐩𝐞𝐞𝐝, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐍𝐞𝐱𝐭 𝐁𝐢𝐠 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐈𝐬 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐂𝐡𝐢𝐩-𝐌𝐚𝐤𝐞𝐫𝐬 𝐭𝐨 𝐌𝐚𝐭𝐜𝐡 Two semiconductor foundation stones. Two states. One clear opportunity: India's infrastructure is moving fast, and it's time our skilling ecosystem moved with the same energy and pace. CG Semi's ₹7,600 crore #OSAT facility in #Sanand is now India's third semiconductor plant, targeting 1.5 crore chips daily. In Visakhapatnam, #ASIPTechnologies has begun work on South India's first chip packaging facility, a ₹2,387 crore project with South Korea's APACT, set to package 96 million chips annually and create over 2,600 direct and indirect jobs. This isn't ambition anymore. It's infrastructure already under construction. What This Demands From Colleges and Universities ➜ ITIs need urgent upgrading - semiconductor assembly, packaging, and testing modules aren't optional additions anymore, they're baseline curriculum for the jobs already being created in Sanand and Vizag. ➜ Interdisciplinary programmes, not siloed degrees - chip packaging today needs materials science, electronics, and precision engineering working together, most curricula still teach these separately. ➜ Operational industry-academia MoUs - CG Semi, ASIP, Micron, Renesas must co-design syllabi directly, not sign ceremonial partnerships that never touch a classroom. ➜ Faculty upskilling first - you cannot teach advanced packaging or design tools you've never used yourself; teacher training has to precede student training. ➜ State-level Centres of Excellence - semiconductor skilling cannot stay concentrated in Bengaluru and Gujarat while Andhra Pradesh and other states build capacity from scratch. 𝐓𝐡𝐞 𝐉𝐨𝐛 𝐏𝐫𝐨𝐟𝐢𝐥𝐞𝐬 𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐑𝐢𝐠𝐡𝐭 𝐍𝐨𝐰 Semiconductor packaging technicians, test engineers, wire-bond and flip-chip specialists, GIS and spatial #dataanalysts for smart infrastructure, IoT systems integrators, digital twin modellers for urban planning. None of these existed as mainstream career tracks a decade ago. Most Indian campuses still aren't training toward them at scale. The real infrastructure gap isn't concrete and capital anymore. It's classrooms, curricula, and confidence in vocational education. We are laying foundation stones for factories at record pace, and it's time we matched that same urgency in laying the foundation for the skilled workforce to run them. The good news is this gap is entirely closable, and closing it doesn't require waiting in line. It requires administrators, educators, and industry moving together, simultaneously, not sequentially. India Semiconductor Mission Make In India Association Of Indian Universities #semiconductor #educators #administrators #digitaltwin #universities #skilldevelopment #fablab #chipmanufacturing #IndiaSemiconductorMission #chipdesign #techrevolution #electronicmanufacturing

Interesting News in the Semiconductor Industry! The Biden administration announced a groundbreaking investment in Intel, awarding the tech giant nearly $20 billion in grants and loans. This strategic move is set to supercharge the domestic production of semiconductor chips, marking the government's largest effort yet to subsidize advanced chip manufacturing. 🏗️ Intel's plans include the construction of two new factories and the modernization of an existing facility in Arizona, an initiative that promises to significantly bolster the U.S. semiconductor industry. This investment is a pivotal component of the 2022 CHIPS and Science Act, which aims to rejuvenate U.S. semiconductor production with $52.7 billion in funding. 🇺🇸 Commerce Department Secretary Gina Raimondo highlighted this as "one of the largest investments ever in the U.S. semiconductor manufacturing," aiming to escalate the United States' share of leading-edge chip production from 0% to 20% by 2030. 💡 This historic outlay underscores the administration's commitment to reducing reliance on foreign chip production and enhancing national security. It also positions the U.S. to regain its stature as a global leader in technology and innovation. 🗳️ Beyond its economic and strategic significance, this investment carries substantial political weight, especially considering Arizona's pivotal role in recent and upcoming elections. It signals a broader effort to bring manufacturing back to America and secure the U.S.'s competitive edge in critical technologies. Let's discuss: How will this investment shape the future of the semiconductor industry and U.S. technological leadership? What impacts can we expect on the job market and economic growth in the regions receiving these investments? How can other tech companies and startups leverage this momentum in semiconductor manufacturing? #SemiconductorIndustry #Innovation #SustainabilityInTech #Geopolitics #CHIPSAct https://lnkd.in/dJaMe-8Y

Cabinet Clears Rs 4,594 Crore for 4 Semiconductor Plants, India’s Chip Leap Across Three States. The Big Push: Four New Plants, One National Mission. On August 12, 2025, the Union Cabinet approved Rs 4594 crore for four semiconductor projects: 2 in Odisha's Bhubaneswar Info Valley, 1 in Punjab’s Mohali, and 1 in Andhra Pradesh. ✅ Odisha: 1. SiCSem Pvt Ltd — Rs 2066 crore silicon carbide fab for defence, EV, power, and telecom chips. 2. 3D Glass Solutions, Inc. — Rs 1943 crore advanced packaging unit, backed by Intel & Lockheed Martin; 50M units/year capacity. ✅ Andhra Pradesh: 1. ASIP Technologies + APACT(Korea) — Rs 468 crore chip packaging facility; 96M chips/year. ✅ Punjab: 1. Continental Device India Pvt. Ltd.— Rs 117 crore component manufacturing expansion. ✅ Why It Matters: Numbers Behind the Move India’s electronics manufacturing stands at Rs 12 lakh crore in 2025, 6x growth in 11 years. 72 startups & 278 academic institutions active in chip R&D and design under the Design Linked Incentive scheme. 60000+ students in chip manufacturing and design training, in partnership with Lam Research, IBM, Purdue. 2000+ high-skill jobs are expected from these plants. Coherent Market Insights reports have suggested India's semiconductor mission is only growing to the next level and impacting lives. ✅ Strategic Ripples: From Defence to Smartphones - Self-Reliance in Critical Tech: SiCSem’s silicon carbide chips power missiles, satellites, EVs, and power grids, cutting import dependence. - Boost to Consumer Electronics: Local sourcing for smartphones, laptops, and IoT hardware strengthens India’s PLI-led electronics boom. - Global Collaborations: Intel, Lockheed Martin, and APACT bring tech transfer, IP access, and export gateways. - Regional Growth: Odisha, Punjab, and Andhra Pradesh rise as new semiconductor hubs beyond traditional metro clusters. ✅ Unexplored Perspectives - Green Tech Advantage: Silicon carbide is emerging as the backbone of next-gen green technologies. Its ability to operate at higher temperatures, with lower energy loss, makes it ideal for electric vehicles, renewable energy converters, and high-performance industrial equipment. - Global Supply Chain Positioning: With the semiconductor world still reeling from shortages, India’s silicon carbide push is a strategic supply chain move. As the US, EU, and Japan seek non-China partners, India’s capacity can fill a high-value niche in power electronics manufacturing. - Talent Democratisation: High-tech manufacturing hubs are attracting first-generation engineers from Tier-2 and Tier-3 cities, offering them a direct route into advanced industries. With policy muscle, ecosystem depth, and global tie-ups, the country is moving from chip consumer to chip producer. The Rs 4594 crore push plants the seeds for a tech manufacturing powerhouse, one that can power missiles, mobiles, and the next decade of digital growth. #semiconductors #india #investing #manufacturing #engineering

Industrial policy through the CHIPS and Science Act: A preliminary report : https://lnkd.in/eenr2Hmt This Peterson Institute for International Economics (PIIE) Briefing assesses the effectiveness of the US government’s program of federal subsidies to foster domestic production of advanced semiconductors. It focuses on the results so far of Division A of the 2022 CHIPS and Science Act, with a subsidy budget (including collateral investment tax credits) approaching $200 billion. The authors evaluate the program across several goals: expanding US production, enhancing economic and national security, reducing US reliance on imported chips, producing 20 percent of global leading-edge chips by 2030, and creating jobs. They also explore questions not specifically identified as CHIPS Act goals: Is semiconductor technology accelerated by subsidies? Is capital expenditure accelerated? Will future US subsidies be needed to achieve the 20 percent goal? And would tariff protection be a better policy than subsidies? The semiconductor industry has been generously subsidized since its inception, not only by the United States but also by major competitors (Japan, South Korea, Taiwan, China, and Europe). Authors: Gary Hufbauer (PIIE) and Megan Hogan (Former PIIE) #semiconductor #manufacturing #technology #innovation #chips  #semiconductormanufacturing #advancedtechnology #engineering #lithography #nanometer #research #development #AI  #mobileprocessors #EUV #DUV