The U.S. semiconductor industry is facing a major turning point. With the surge in global demand for semiconductors, especially in fields such as smartphones, automobiles, satellites and artificial intelligence, semiconductors have become the backbone of the modern economy. However, the United States has gradually lost its leadership in semiconductor manufacturing over the past few decades, falling from 37% in 1990 to just 10% in 2022.
The U.S. government has taken a series of decisive measures to revive the semiconductor manufacturing industry. Under the CHIPS and Science Act, the United States has strengthened the advanced manufacturing investment tax credit to demonstrate its determination to rebuild the foundation of semiconductor manufacturing. While supply-side incentives are critical, more demand-side incentives are needed to prompt companies to bring demand back to the United States.
The U.S. government’s goal is to ensure that at least 50% of the semiconductors used in the United States are produced domestically. To achieve this goal, the government proposes to impose targeted tariffs on semiconductor imports and establish a "chip-for-chip" import credit system, allowing companies to obtain tariff relief by committing to purchase more chips from local U.S. manufacturers.
Global semiconductor sales are expected to reach US$70.09 billion in 2025, and the U.S. market size is expected to be US$9.61 billion, an annual increase of 15%. The U.S. semiconductor industry accounts for more than 50% of global revenue, and is expected to triple its production capacity by 2032, creating more than 500,000 jobs. NVIDIA, TSMC and other companies continue to lead, and their advanced packaging technology production capacity has rapidly expanded, becoming the key to the AI chip supply chain.
Restoring America’s manufacturing backbone through semiconductor leadership Global Semiconductor Sales in 2025: A Record Breaking Year Predicted 2025 State of the Industry Report: Investment and Innovation Amidst Global Challenges and Opportunities 2025 global semiconductor industry outlook Semiconductors in the United States – statistics & facts Semiconductor Industry Outlook 2025 A timeline of the US semiconductor market in 2025 Further reading: Intel reiterates commitment to Ohio's massive wafer fab construction plan after Trump administration takes stake When the State Comes to the Board of Directors: The New American Corporate Governance Model of Investing in Intel and “taking a Cut” from NVIDIA The U.S. government’s investment in Intel raises market concerns about political interference in private companies