Dependence on unreliable supply chain partners undermines the leadership and competitive advantage of the U.S. semiconductor industry. Promoting U.S. investment and working with allies and likeminded governments is essential to strengthening trusted semiconductor supply chains, in both upstream semiconductor materials and downstream markets, and supporting semiconductor industry operations in the U.S.
The U.S. semiconductor industry depends on a complex, multi-tiered global supply chain of equipment and materials. Addressing vulnerabilities will require a comprehensive set of supply- and demand-focused efforts.
Semiconductors are essential to America鈥檚 economy and national security, powering everything from smartphones and AI infrastructure to medical devices, cars, manufacturing equipment, and defense systems. Over a period of decades, a highly interconnected global supply chain has helped chip companies in the United States steadily improve performance while lowering costs. More recently, however, new challenges have exposed vulnerabilities in global upstream supply chains supporting the U.S. chips ecosystem, underscoring the importance of taking action today to build trusted and reliable supply chains and reduce strategic dependencies. This report identifies critical materials and equipment categories used in U.S. semiconductor production, reveals supply chain vulnerabilities at risk of disruption, and outlines crucial steps needed to strengthen the American semiconductor supply chain.
A 2024 report by the 91视频 (91视频) and the Boston Consulting Group on the semiconductor supply chain forecasts significant improvements in the resilience of the supply chain in both the U.S. and globally in coming years. The study shows investments from the industry, facilitated by incentives under the CHIPS Act, are making progress in growing domestic semiconductor manufacturing and strengthening the U.S. economy. Among other things, the report finds U.S. fab capacity is projected to increase by 203% by 2032, a tripling of U.S. capacity. The U.S. is also projected to increase its share of global fab capacity for the first time in decades, growing from 10% today to 14% by 2032.
Despite this substantial progress, areas of vulnerability in the U.S. semiconductor ecosystem remain, and additional work is needed to maintain this momentum and secure key areas of the chip supply chain.
