US semiconductor manufacturing could undergo major changes as major chipmakers plan to bring new factories online during Donald Trump’s upcoming presidency.
According to a recent Business Insider while the Biden administration laid the groundwork for domestic chip manufacturing through the CHIPS Act, a real manufacturing boom and job creation may materialize during a Trump presidency.
The initiative began with Biden securing commitments from five global semiconductor giants — TSMC, Intel, Samsung, Micron and SK Hynix — representing a transformative shift in U.S. semiconductor manufacturing capabilities. As of August 2024, companies in the semiconductor ecosystem have announced more than 90 new manufacturing projects in 28 states, totaling nearly $450 billion in announced investments.
The timing of this manufacturing expansion is particularly significant for cloud computing providers. According to SIA 2024 State of the US Semiconductor Industry In the decade following CHIPS enactment (2022 to 2032), the U.S. is projected to more than triple its semiconductor manufacturing capacity—the fastest growth rate in the world during that period.
The report predicts that the US will increase its share of advanced (less than 10nm) chip manufacturing to 28% of global capacity by 2032 and capture 28% of total global capital expenditure (capex) between 2024 and 2032.
For the cloud computing industry, which has faced significant chip shortages and supply chain disruptions, this expansion of U.S. semiconductor manufacturing capacity offers several strategic advantages:
- Supply chain resilience: The development of in-house chip manufacturing facilities will help cloud providers better manage supply chain risks. The SIA report highlights that US factory capacity will increase by 203% from 2022 to 2032, potentially reducing reliance on international manufacturers.
- Advanced access to technology: These new facilities will focus on the production of high-end logic and memory chips, essential components for next-generation cloud computing. The CHIPS Act’s $39 billion manufacturing incentives specifically target such advanced manufacturing capabilities.
- Economic consequences: In addition to the Semiconductor Industry Association’s projected 42,000 direct jobs and 101,500 indirect jobs, the expansion could contribute to broader technological innovation in the cloud computing industry. The report states that the semiconductor industry supports more than 300 downstream economic sectors, accounting for more than 26 million US workers.
However, challenges remain. The SIA report cites a projected shortage of 67,000 technicians, computer scientists and engineers in the semiconductor industry by 2030. Samsung has reportedly delayed shipments of chip-making equipment due to a lack of major customers, while other manufacturers face various delays in construction schedules. .
For cloud service providers and their customers, the success of this domestic semiconductor manufacturing initiative could mean more reliable hardware supply chains, lower costs through reduced international shipping and tariffs, and faster access to the latest chip technology. However, the extended timeline for the factory’s completion means that these benefits may take several years to realize.
The SIA report further highlights that artificial intelligence will be a key driver of semiconductor demand and predicts that by 2030, artificial intelligence could contribute more than $15 trillion to the global economy. This perfectly matches the growing focus of cloud providers on AI services and infrastructure.
As the cloud computing industry continues to grow and evolve, developing robust U.S. semiconductor manufacturing capabilities is critical to maintaining technology leadership and ensuring service reliability.
The coming years under the Trump administration will show whether this manufacturing boom can live up to its promise and how it could reshape the cloud computing infrastructure landscape.
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