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Released April 01, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As the global chip shortage persists and the Russia-Ukraine war disrupts semiconductor manufacturing, the need for more production in the U.S. grows each day. Industrial Info is tracking almost $24 billion in U.S.-based semiconductor projects planned to kick off in the second quarter, led by the construction of two chip manufacturing plants from Intel Corporation (NASDAQ:INTC) (Santa Clara, California). That amount accounts for more than one-third of the U.S. Industrial Manufacturing Industry's total investment value of planned project starts in the quarter.
Click on the graph at right for U.S. semiconductor projects planned to kick off in the second quarter, by the top five sectors.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list of second-quarter U.S. Industrial Manufacturing project kickoffs.
It is widely expected that the global chip shortage will continue well into 2022. The shortage has been exacerbated by Russia's invasion of Ukraine: For example, the U.S.' supply of a key material in making semiconductors, neon, comes almost entirely from Ukraine and Russia. For more information, see Industrial Info's March 11, 2022, article - U.S. Manufacturing Shows Growth, But Russia-Ukraine Conflict Lingers.
According to the U.S. Chamber of Commerce, the U.S. share of global semiconductor manufacturing capacity declined from 37% in 1990 to 12% in 2020, while Asia is home to 75% of global semiconductor manufacturing capacity; but the U.S. generates nearly half of global semiconductor sales. The Chamber recently responded to a request for information (RFI) from the U.S. Department of Commerce on the domestic semiconductor industry's needs.
According to the Chamber, "To strengthen the global competitiveness in the U.S. semiconductor sector, the full chip ecosystem must be addressed. This spans the length of the production chain, from starting materials to design to packaging and final test. Semiconductor manufacturing capacity is also dependent on the production and installation of additional semiconductor manufacturing equipment, material supplies, design tools, and packaging, as well as support from the supplier base in the installation of this equipment in manufacturing facilities."
The Chamber identified several steps regarding "incentives, infrastructure, and research and development," including a financial assistance program for areas such as "technological performance, capital expenditure, and projects that are 'shovel-ready'."
Earlier this year, Intel announced a $20 billion investment to build two chip production factories in New Albany, Ohio, outside Columbus, on a 1,000-acre "mega-site." Construction is expected to begin later this year, and production is expected to be brought online in 2025, the company said. Subscribers can click here for the project reports. The complex could expand to eight chip factories, with a total investment of as much as $100 billion over the next decade.
Intel also has announced a $36 billion investment in chip production and research across Europe. Overall, the company expects to spend as much as 80 billion euros (US$89.2 billion) in the European Union (EU) over the next decade along the entire semiconductor supply chain. For more information, see Industrial Info's March 28, 2022, article - Intel To Spend $36 Billion on European Chip Plants.
Semiconductors also are used in data centers, which are in high demand due to the continued rise in e-commerce and cloud computing. The sector accounts for more than $9 billion worth of second-quarter kickoffs in the U.S., including Microsoft Corporation's (NASDAQ:MSFT) (Redmond, Washington) Phase I data center campus (SAT14) in San Antonio, Texas, to fulfill an increased need for local cloud services. The project entails constructing two buildings totaling more than 250,000 square feet. Subscribers can click here for more information.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the graph at right for U.S. semiconductor projects planned to kick off in the second quarter, by the top five sectors.Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list of second-quarter U.S. Industrial Manufacturing project kickoffs.
It is widely expected that the global chip shortage will continue well into 2022. The shortage has been exacerbated by Russia's invasion of Ukraine: For example, the U.S.' supply of a key material in making semiconductors, neon, comes almost entirely from Ukraine and Russia. For more information, see Industrial Info's March 11, 2022, article - U.S. Manufacturing Shows Growth, But Russia-Ukraine Conflict Lingers.
According to the U.S. Chamber of Commerce, the U.S. share of global semiconductor manufacturing capacity declined from 37% in 1990 to 12% in 2020, while Asia is home to 75% of global semiconductor manufacturing capacity; but the U.S. generates nearly half of global semiconductor sales. The Chamber recently responded to a request for information (RFI) from the U.S. Department of Commerce on the domestic semiconductor industry's needs.
According to the Chamber, "To strengthen the global competitiveness in the U.S. semiconductor sector, the full chip ecosystem must be addressed. This spans the length of the production chain, from starting materials to design to packaging and final test. Semiconductor manufacturing capacity is also dependent on the production and installation of additional semiconductor manufacturing equipment, material supplies, design tools, and packaging, as well as support from the supplier base in the installation of this equipment in manufacturing facilities."
The Chamber identified several steps regarding "incentives, infrastructure, and research and development," including a financial assistance program for areas such as "technological performance, capital expenditure, and projects that are 'shovel-ready'."
Earlier this year, Intel announced a $20 billion investment to build two chip production factories in New Albany, Ohio, outside Columbus, on a 1,000-acre "mega-site." Construction is expected to begin later this year, and production is expected to be brought online in 2025, the company said. Subscribers can click here for the project reports. The complex could expand to eight chip factories, with a total investment of as much as $100 billion over the next decade.
Intel also has announced a $36 billion investment in chip production and research across Europe. Overall, the company expects to spend as much as 80 billion euros (US$89.2 billion) in the European Union (EU) over the next decade along the entire semiconductor supply chain. For more information, see Industrial Info's March 28, 2022, article - Intel To Spend $36 Billion on European Chip Plants.
Semiconductors also are used in data centers, which are in high demand due to the continued rise in e-commerce and cloud computing. The sector accounts for more than $9 billion worth of second-quarter kickoffs in the U.S., including Microsoft Corporation's (NASDAQ:MSFT) (Redmond, Washington) Phase I data center campus (SAT14) in San Antonio, Texas, to fulfill an increased need for local cloud services. The project entails constructing two buildings totaling more than 250,000 square feet. Subscribers can click here for more information.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
