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Semiconductors

Applied Economics in US Manufacturing: Semiconductors

Assembly Plant
Photo Credit: The Chrysler 200 Factory Tour, an interactive online experience using Google Maps Business View technology, takes consumers inside the new 5-million-square-foot Sterling Heights Assembly Plant for a behind-the-scenes peek at how the 2015 Chrysler 200 is built.

Recently, semiconductor manufacturing has come into the national spotlight. Below are figures on the U.S. semiconductor manufacturing industry NIST AMS 600-13.

U.S. Semiconductor Manufacturing in Brief

Some brief figures on U.S. semiconductor manufacturing include the following:

  • U.S. semiconductor manufacturing value added was $34.4 billion in 2021
  • It was 26.1 % larger in 2021 than it was in 2008
  • Industry value added has had a 5-year compound annual growth rate (CAGR) of 7.4 %
  • In 2020, the U.S. had 12 % of the global production capacity down from 37 % in 1990 (See Table A 1)
Figure A 1 from AMS 600-13: Semiconductor Shipments, Value Added, and Employment, 2008-2021
Figure A 1 from AMS 600-13: Semiconductor Shipments, Value Added, and Employment, 2008-2021
Credit: AMS 600-13

 

Table A 1 from NIST AMS 600-13: U.S. Share and Compound Annual Growth Rate (CAGR) of Production Capacity

U.S. Share and Growth of Production Capacity

U.S. Semiconductor Manufacturing Sophistication

Smaller process technology equates to higher technological sophistication. Below are characteristics of U.S. production.

  • In 2019, the U.S. had 43 % of the 10 nm to 22 nm process technology market
  • In 2019, the U.S. had little to no capacity for the most advanced technology, which is at the 10 nm or less process technology

Table A 2 from NIST AMS 600-13: 2019 National Share of Global Process Technology and Value of Subsidies, 2019

Table A 2 from AMS 600-13: 2019 National Share of Global Process Technology and Value of Subsidies, 2019
Table A 2 from AMS 600-13: 2019 National Share of Global Process Technology and Value of Subsidies, 2019
Credit: AMS 600-13

U.S. Activities occurring Globally in Semiconductor Manufacturing

U.S. companies engage in activities domestically and abroad. Some characteristics are provided below.

  • U.S. owned firms, which own facilities around the world, have a commanding position in terms of the design of semiconductors
  • U.S. firms held significant proportions of national markets, including 53.4 % of the Chinese market

Table A 4 from NIST AMS 100-49: U.S. Firms Share of National Semiconductor Markets

Table A 4 from AMS 600-13: U.S. Firms Share of National Semiconductor Markets
Table A 4 from AMS 600-13: U.S. Firms Share of National Semiconductor Markets
Credit: AMS 600-13

For more information, please see AMS 600-13.

AMS 600-13
Credit: AMS 600-13
 
 

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Created January 4, 2023, Updated December 5, 2023