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Growth in US Semiconductor Manufacturing Will Bring Regional Opportunities and Challenges

February 13, 2023 Jordan Boege, MPP

The US semiconductor manufactuing industry will be booming in the coming years thanks to billions of dollars in federal and private investmentSemiconductor manufacturing in the United States is experiencing a renaissance due to pandemic-related shortages causing the private sector and federal and state governments to invest heavily in increased domestic production.

Currently, 75% of the worlds semiconductors, which are an important component in chips used in a wide variety of electronic and computing devices, are manufactured in East Asia. Over the coming decade, billions of dollars of federal money and private capital will be allocated to building and operating semiconductor manufacturing facilities across the US.

Given the significant scale of these manufacturing facilities, nearby communities will be well served if they start planning now for the changes that will be coming their way, both in the short and long term. For these communities, this spending will have spillover effects into a variety of other areas, including infrastructure and municipal services, housing, and the growth of accommodations, services, and semiconductor-adjacent industries.

The impact of some of these major planned facilities include:

Municipalities and industries that get in front of these changes and associated planning needs will be well-positioned in the coming years to maximize economic vitality.

Do you need assistance creating an economic development plan or strategy that addresses semiconductor workforce development? Camoin Associates can help. Learn more about our consulting services.