Foreign media: Without government investment and support, the establishment of a fab in the United States will be at a serious disadvantage
Keith Jackson, President and CEO of ON Semiconductor and Chairman of the Semiconductor Industry Association, recently posted on the Fortune.com website that semiconductors are the engine of the global economy, and current US semiconductor production is insufficient.
Keith Jackson believes that as the brain of modern technology, semiconductors are critical to the economic strength, national security, and response to the COVID-19 pandemic and future crisis in the United States. Although American companies have been a world leader in chip technology for decades, only about 12% of global semiconductor manufacturing is completed in the United States. In his view, responding to this challenge and strengthening American semiconductor manufacturing and research and development is the most important "space race."
US economic growth and national security rely on cutting-edge semiconductors to maintain global leadership. Countries that are in a leading position in advanced chip design and manufacturing will also play an important role in the global deployment of new game-changing technologies such as 5G, artificial intelligence and quantum computing.
American policy makers realized that, especially in the current uncertain period, the continued decline in chip manufacturing will bring risks to the economy and national security. The leaders of the US Congress recently introduced two bills, the CHIPS for America Act and the American Foundries Act, which aim to create more semiconductor manufacturing and R&D and related work in the United States. Keith Jackson said that investing in these areas is the right thing, and now is the right time.
Keith Jackson pointed out that the COVID-19 epidemic crisis and continued geopolitical turmoil highlight the fragility of the supply chain and the importance of strengthening the US semiconductor ecosystem. Of course, it is impractical to fully establish a supply chain that is the most complex in the world, but it should rebalance the supply chain to make it more resilient.
The United States is the undisputed global leader in designing highly complex semiconductors. But on the manufacturing side, Keith Jack-son admits that the situation becomes a little vague—
At present, there are more than 70 highly advanced manufacturing plants or fabs in the United States, which are distributed in 18 states in the United States (including crystals being built or expanded in Arizona, New York, Texas, Virginia and other regions. Round Factory), the semiconductor is the fifth largest export product in the United States, because customers around the world are seeking the benefits of the latest technology. But Keith Jackson pointed out that a closer look will reveal the huge challenge-Asia now dominates the global manufacturing industry. By 2030, it is expected to account for 83% of the world's semiconductor manufacturing industry, of which China will be the fastest growing country.
According to Keith Jackson, any plan for the US government to address these challenges should include two main pillars:
First, the government needs to compete fairly and create incentives to stimulate the construction of domestic semiconductor manufacturing facilities in the United States. In other countries/regions that have an important share in the semiconductor manufacturing industry, their governments are the main providers of incentives, including substantial subsidies and tax breaks. The US federal government does not.
Keith Jackson cited a series of cost data: state-of-the-art semiconductor factories cost as much as $20 billion, and are very expensive to build and operate, almost double the size of modern aircraft carriers. The construction and operating costs of a new plant built in the United States within five years are billions of dollars higher than a new plant built outside the United States. Therefore, if there is no government support measures, even powerful companies want to build fabs in the United States, will be at a serious disadvantage in the global market.
Second, Keith Jackson believes that the US federal government should substantially increase investment in semiconductor R&D. Last year, the semiconductor industry invested nearly US$40 billion in research and development, accounting for about one-fifth of revenue, accounting for the highest share of all industries, and nearly 25 times the US federal government's investment in semiconductor research and development. The increase in government investment in semiconductor R&D will provide taxpayers with a good return on investment and increase labor. Keith Jackson pointed out, "Every dollar invested by the government in semiconductor R&D will create a GDP growth of $16."
Although the cost of investment in the field of semiconductor manufacturing and R&D will be very large, if you do not act in the above fields, it will lead to a greater price, will affect the U.S. economy and national security, and will shake the U.S. leadership.
Keith Jackson appealed that it is time for the U.S. government to act boldly and take drastic actions to make it more flexible and ensure that the world’s most advanced chips will be developed, designed and manufactured in the United States in the coming decades.
Keith Jackson believes that as the brain of modern technology, semiconductors are critical to the economic strength, national security, and response to the COVID-19 pandemic and future crisis in the United States. Although American companies have been a world leader in chip technology for decades, only about 12% of global semiconductor manufacturing is completed in the United States. In his view, responding to this challenge and strengthening American semiconductor manufacturing and research and development is the most important "space race."
US economic growth and national security rely on cutting-edge semiconductors to maintain global leadership. Countries that are in a leading position in advanced chip design and manufacturing will also play an important role in the global deployment of new game-changing technologies such as 5G, artificial intelligence and quantum computing.
American policy makers realized that, especially in the current uncertain period, the continued decline in chip manufacturing will bring risks to the economy and national security. The leaders of the US Congress recently introduced two bills, the CHIPS for America Act and the American Foundries Act, which aim to create more semiconductor manufacturing and R&D and related work in the United States. Keith Jackson said that investing in these areas is the right thing, and now is the right time.
Keith Jackson pointed out that the COVID-19 epidemic crisis and continued geopolitical turmoil highlight the fragility of the supply chain and the importance of strengthening the US semiconductor ecosystem. Of course, it is impractical to fully establish a supply chain that is the most complex in the world, but it should rebalance the supply chain to make it more resilient.
The United States is the undisputed global leader in designing highly complex semiconductors. But on the manufacturing side, Keith Jack-son admits that the situation becomes a little vague—
At present, there are more than 70 highly advanced manufacturing plants or fabs in the United States, which are distributed in 18 states in the United States (including crystals being built or expanded in Arizona, New York, Texas, Virginia and other regions. Round Factory), the semiconductor is the fifth largest export product in the United States, because customers around the world are seeking the benefits of the latest technology. But Keith Jackson pointed out that a closer look will reveal the huge challenge-Asia now dominates the global manufacturing industry. By 2030, it is expected to account for 83% of the world's semiconductor manufacturing industry, of which China will be the fastest growing country.
According to Keith Jackson, any plan for the US government to address these challenges should include two main pillars:
First, the government needs to compete fairly and create incentives to stimulate the construction of domestic semiconductor manufacturing facilities in the United States. In other countries/regions that have an important share in the semiconductor manufacturing industry, their governments are the main providers of incentives, including substantial subsidies and tax breaks. The US federal government does not.
Keith Jackson cited a series of cost data: state-of-the-art semiconductor factories cost as much as $20 billion, and are very expensive to build and operate, almost double the size of modern aircraft carriers. The construction and operating costs of a new plant built in the United States within five years are billions of dollars higher than a new plant built outside the United States. Therefore, if there is no government support measures, even powerful companies want to build fabs in the United States, will be at a serious disadvantage in the global market.
Second, Keith Jackson believes that the US federal government should substantially increase investment in semiconductor R&D. Last year, the semiconductor industry invested nearly US$40 billion in research and development, accounting for about one-fifth of revenue, accounting for the highest share of all industries, and nearly 25 times the US federal government's investment in semiconductor research and development. The increase in government investment in semiconductor R&D will provide taxpayers with a good return on investment and increase labor. Keith Jackson pointed out, "Every dollar invested by the government in semiconductor R&D will create a GDP growth of $16."
Although the cost of investment in the field of semiconductor manufacturing and R&D will be very large, if you do not act in the above fields, it will lead to a greater price, will affect the U.S. economy and national security, and will shake the U.S. leadership.
Keith Jackson appealed that it is time for the U.S. government to act boldly and take drastic actions to make it more flexible and ensure that the world’s most advanced chips will be developed, designed and manufactured in the United States in the coming decades.