Amidst heightened global demand and a steadily shrinking share of the world’s most advanced microchip factories, semiconductor industry leaders and stakeholders joined today to launch the National Semiconductor Economic Roadmap (NSER). The industry-led effort aims to boost U.S. semiconductor competitiveness through a focus on the workforce, supply chain and infrastructure to support semiconductor research and development, design, manufacturing, and end-applications.
Semiconductor technology took off in the United States in the mid-twentieth century, with the U.S. share of global semiconductor production peaking at 37 percent in 1990. Since then, the share has fallen to 12 percent, with nearly 80 percent of manufacturing facilities, known as “fabs,” now concentrated in Asia.
“Today more than ever, we see the strategic importance of a robust U.S. semiconductor industry,” said Pat Gelsinger, CEO of Intel. “Intel has been at the forefront of designing and manufacturing semiconductors in the United States for over 50 years, and many of our leading commercial and technological innovations have grown out of Arizona. Fostering deeper partnerships with our research institutions, universities, defense institutions, state leaders, and more will be critical to our long-term economic and national security, and we are pleased to join this worthwhile effort.”
The launch of NSER kicks off a year-long initiative to craft an industry-developed blueprint to advance the competitive position of the United States for semiconductor investment across the supply chain. Participating entities to include private sector companies, higher education institutions, industry associations and states will convene over the coming months to identify precompetitive technical challenges and opportunities, infrastructure and supply chain issues, workforce skill requirements and more. The first meeting is slated for October.
“A thriving semiconductor ecosystem requires solid infrastructure, a comprehensive supply chain, and a steady inflow of talented and dedicated people,” said Rick Cassidy, Chief Executive Officer and President, TSMC Arizona. “TSMC is building a fab in Arizona using 5nm technology that is set to be the most advanced semiconductor manufacturing facility on U.S. soil when it is completed, and we look forward to contributing towards a prosperous semiconductor ecosystem in the United States.”
Founding industry partners participating in NSER host operations in more than a dozen states and territories.
“At NXP, we build automotive, industrial, communication infrastructure, and smart city technology solutions that improve people’s daily lives,” said Kurt Sievers, President and CEO of NXP Semiconductors. “We believe that the national economic roadmap will help forge a path forward to diversify such semiconductor applications while ensuring states across the U.S. take steps to further optimize the semiconductor investment climate, infrastructure, and workforce. We are proud to share our expertise as part of this effort to expand semiconductor production nationwide.”
“Headquartered in Arizona and with operations around the world, Microchip is helping our global customers achieve smart, connected and secure embedded control solutions,” said Steve Sanghi, Executive Chairman of Microchip Technology Inc. “Through an industry-led road mapping process, we can better align state and local partners in ways that address common challenges today and prepare for success in the years and decades ahead.”
“The National Semiconductor Economic Roadmap will provide an opportunity to further collaborate on an industry-driven pathway for the future in partnership with states that are on the front lines of semiconductor investment, attraction, and retention,” said John Neuffer, President and CEO of the Semiconductor Industry Association. “As SIA continues to spearhead recommended federal policies to further strengthen the U.S. semiconductor industry, we look forward to engaging with state and local partners on workforce, regulatory, and critical infrastructure issues via this effort.”
As the state facilitating the effort, Arizona boasts a rich history of semiconductor leadership that dates back to the 1950s when Motorola began developing and testing some of the earliest transistors on the market. Already a top four state for semiconductor employment, Arizona is the recent recipient of two massive semiconductor investments. Intel announced in March a $20 billion investment to build two additional fabs in the state, creating 3,000 jobs. Taiwan Semiconductor Manufacturing Company (TSMC) announced in May 2020 an investment of $12 billion to build a new fab in Phoenix, creating 2,000 jobs.
“As Arizona’s experience has shown, states are on the front lines of semiconductor investment and attraction,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We’re proud to help lead this historic effort alongside our state and industry partners to develop a shared vision, one that can help drive American semiconductor leadership for decades to come.”
Additional updates will be provided over the coming months. Entities interested in joining NSER can find more information at www.azcommerce.com/NSER.
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