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USA spending more on semiconductor production in 2024 than the previous three decades combined

USA spending more on semiconductor production in 2024 than the previous three decades combined
The US government has been pouring money into semiconductor production at an unprecedented rate this year in its bid for dominance.

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US Government Invests Billions in Domestic Chip Manufacturing

According to a recent report from the U.S. Census Bureau, the United States government has been pouring an unprecedented amount of money into domestic chip manufacturing as part of its ongoing battle with China for global supremacy in the semiconductor industry. The funding for constructing advanced electronics manufacturing facilities in 2024 alone is set to surpass the total amount spent over the previous 27 years combined.

This massive influx of investment is driven by the Biden administration’s CHIPS and Science Act, a $280 billion legislative package passed in 2022 to turbocharge the country’s semiconductor industry. Major chip manufacturers like Intel, Samsung, and Micron have secured billions to build new advanced fabrication plants across the U.S.

The US is expected to grow its share of advanced logic manufacturing to 28% of global capacity by 2032, up from 0% in 2022. This is significant due to concerns in Washington over the security of chips produced in Taiwan, which produces around 90% of all the advanced chips in the world. The investments are already paying dividends, with a recent industry study projecting that American chip manufacturing capacity is set to triple by 2032.

However, companies are experiencing delays of over a year due to relatively poor regulations that make the U.S. one of the slowest nations for chip fab construction globally.

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