$52 billion won't be enough - U.S. semiconductor industry will require additional $30 billion in funding

In 2022, the U.S. passed a package of laws to support the domestic semiconductor industry. It provides $52 billion in subsidies for national companies that are ready to launch production in the United States. But that money won't be enough.

Here's What We Know

At the end of 2015, the U.S. market accounted for half of global semiconductor market revenue. Five years later, the figure has dropped to 46%. Without additional investment in chip development, by the end of this decade, the U.S. share of the global market will be only 36%.

Experts believe that the total investment of the U.S. government in national semiconductor manufacturing may increase up to more than $80 billion. In their opinion, in addition to $52 billion the U.S. will have to finance the development of chips, investing another $30 billion. And more than half of this amount would be a tax deduction for companies.

Right now, subsidies to this segment are about 13%. By comparison, China, Taiwan and Asian countries allocate almost one-third of the subsidies to the semiconductor industry. However, it is U.S. companies that invest the most in this sector.

Source: Fierce Electronics, The Register

Image: SemiAnalys